Temasek buys SVB’s Indian venture debt arm

SVB's logo from the company's social media page

Singapore -based Temasek is acquiring 100 per cent stake in in SVB India Finance Private Limited, the specialty lending arm of Silicon Valley Bank, for about $45 million.

Silicon Valley Bank is a wholly-owned subsidiary of NASDAQ-listed diversified financial services company SVB Financial Group.

According to a regulatory disclosure, the transaction, which is subject to certain customary closing conditions, including regulatory approval by the Reserve Bank of India, is expected to close in the first quarter of 2015.

The transaction will lead to SVB Financial registering a loss of loss of approximately $11.4 million in its fourth quarter results, on a post-tax basis, the company said, while adding that it may also register another another transaction-related expenses of approximately $1 million, on a pre-tax basis in the first quarter of 2015.

Mumbai-based SVB India Finance Pvt was set up in 2008 to provide debt capital to venture backed companies in India. Its services include venture debt, acquisition financing, growth capital and capex financing, and it has invested in companies such as Snapdeal, iYogi, Perfint, Capillary, online jeweler Bluestone, QSR chain Faaso’s, baby care portal FirstCry, online recharge portal Freecharge and travel platform yatra.com among others.

At the group level, SVB is also operates a venture capital arm in India –  SVB India Capital Partners – which has made co-investments in companies such as One97 Communications, iYogi, Geodesic Techniques, Genesis Colors among others.

This also marks Temasek’s second debt business in India as the company is already operating in the NBFC space with its wholly owned Fullerton India Credit Company Ltd (FICCL). It is not known if Temasek will consolidate its NBC business in India under a single entity by merging SVB India with FICCL.

Temasek’s portfolio in India includes ACC, Adani Ports, GMR Energy, Max India, National Stock Exchange, Tata Sky, Shriram Transport Finance and Godrej Agrovet, among others. Its wholly-owned subsidiary and venture capital arm Vertex has also invested in several startups in India.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.