Wednesday, August 5, 2020

Lending Tech Startup Vivriti Capital raises US$50M Series B

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Funding round is third close of the month for Bengaluru-based impact investor LGT Lightstone Aspada

 

By Sharon Lewis

 

India-based fintech platform Vivriti Capital raised US$50 million in a Series B round from private equity firm LGT Lightstone’s India wing LGT Lightstone Aspada, according to a statement by the company on March 18. The funding was raised within a year of the startup’s Series A round with US-based Creation Investments.

 

With the Series B, Vivriti Capital’s total fund haul stands at $100 million, the statement added. Avendus Capital acted as the exclusive financial advisor for the deal.

 

Reflecting on the debt platform’s growth over the past year, Co-founders Gaurav Kumar and Vineet Sukumar said, “…we’ve seen significant scale across debt products and the business volumes crossed Rs. 25,000 Cr [approximately US$3.3 billion] in overall debt flow. This investment from Lightstone (LGT Lightstone Aspada), will be used to significantly ramp up the technology and analytical engine powering the online marketplace and to shore up the balance sheet lending of the company thereby serving many more clients on our platform in the coming year.”

 

Founded in 2017, the Chennai-headquartered fintech platform helps individuals and enterprises with their credit needs through lending and investing services, investment banking, and financial advisory. Its online debt platform CredAvenue is tailored for enterprise debt. With a user-base of over 2000, the two-year-old lending platform has so far processed a deal volume of over $3 billion, the company said in its statement.

 

CredAvenue offers underwriting services, analytical solutions, and automated execution workflows, and clientele on the platform include major banks, other nonbanking financial institutions, mutual funds, development finance institutions, and family businesses.

 

Kartik Srivatsa, Managing Partner of LGT Lightstone Aspada said, “Over the last few years, we have tracked [Vivriti Capital’s] progress keenly and have been impressed by the quality of execution. We believe that the combination of their tech platform and strong product development capabilities bring much needed innovation in the space towards expanding the supply of ‘rightly priced’ debt to high impact businesses.”

 

This is LGT Lightstone Aspada’s third investment this month, having closed a $7 million Series A with fintech startup SmartCoin on March 17, and a $6 million pre-Series B for agritech startup Arya earlier in March.

 

Pankaj Naik, Co-head of Digital & Technology Investment Banking at Avendus Capital, highlighted underserved debt market segments in India.

 

“India’s underserved high yield and secondary debt market provides a large untapped opportunity for a reliable tech platform to provide access to quality assets… the investment is a testament for Indian businesses solving problems that remain unaddressed globally,” he said.

 

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