Temasek-backed venture debt provider InnoVen Capital today said it has committed Rs 700 crore ($99 million) across 42 companies in India in the last one year.
Of these InnoVen India had invested over Rs 600 crore ($85 million) across 36 companies in 2018, a 28 per cent year-on-year increase over 2017. The remaining amount will be invested in six companies soon, which would take the total amount of venture debt extended by InnoVen India to over $350 million since its inception. So far InnoVen India has conducted more than 200 transactions with around 130 companies.
While the venture debt provider added 21 new companies to its portfolio including Eruditus, GreyOrange, Bounce, DailyHunt, ElasticRun and Licious, it also backed 15 of its existing portfolio companies with Rs 250 crore worth of follow-on investments. It made follow on investments in PepperFry, Epigamia, Bizongo, UNBXD, Capillary, Travel Triangle, and ShadowFax, among others
“2018 has been our best year ever, as we broke through previously established milestones and set several new ones,” said Ashish Sharma, CEO – InnoVen Capital India.
“We are particularly pleased with the strong momentum in our portfolio companies which raised over $3.5 billion of capital this year. We are also proud to count seven unicorns as part of our portfolio,” he added
The average ticket size of the investment was Rs 17 crore which was a marginal increase over 2017. B2C businesses contributed 70%, while the remaining part of the investments went to B2B companies. The key sectors where investments were made included consumer internet, enterprise-tech, logistics food and healthcare.
InnoVen has bounced back after it witnessed a shakeup in the top level management in India last year, when its Group COO and India CEO Ajay Hattangdi and deputy CEO Vinod Murali resigned from the firm to launch their own investment firm, Alteria Capital. InnoVen subsequently brought in former GE Capital, India, senior executive Ashish Sharma as the new chief executive for its Indian arm.
InnoVen Capital entered India in 2008 as the first dedicated venture debt provider in the country. The firm was then part of US-based Silicon Valley Bank. In January 2015, Singapore’s state-owned investment firm Temasek acquired the Indian venture debt business of Silicon Valley Bank for around Rs 280 crore.
Venture debt has grown as a means for funding for startups that are not keen to give up equity. Other players in the market include Alteria Capital Advisors LLP, which reached the second close of its maiden fund with commitments worth Rs 625 crore ($85 million) in October last year. Another venture debt firm Trifecta is currently raising funds for its Rs 750 crore Fund II, of which it expects to achieve a first close of Rs 250 crore soon.
Last year, venture capital firm IvyCap also announced its plans to launch a $76.4-million venture debt fund. Venture capital firm Unicorn India also launched its $92-million venture debt fund in November 2017.