Impact investor Creation Investments backs enterprise lending firm Vivriti Capital
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Chennai-based Vivriti Capital Pvt. Ltd, which runs an online platform for institutional debt in India, has raised Rs 200 crore (about $28.5 million) in equity funding from US-based impact investor Creation Investments, a company statement said.

The non-banking financial company will use the funds to further scale up the balance sheet and expand its online market platform, the statement added.

In October, VCCircle had reported that Creation Investments had picked up a 75% stake in Vivriti Capital.

“The current capital raise will be used for lending, as well as investment in our technology platform,” said Gaurav Kumar, founder of Vivriti Capital, in the statement.

Vivriti Capital was founded in June 2017 by Kumar and Vineet Sukumar, who are both former executives at IFMR Capital, the non-banking finance arm of Chennai-based IFMR Group.

The firm received approval from the Reserve Bank of India to float an NBFC in January 2018.

Vivriti Capital is a tech-enabled online marketplace that offers customised debt products to institutional clients. The startup offers loans, working capital, structured debt and fixed-income capital market instruments using data analytics and algorithms. It also offers financial advisory services.

Founded in 2007, Chicago-based Creation Investments makes bets in financial services, particularly small-and-medium enterprise lenders, microfinance institutions and other social ventures in emerging markets.

The firm started investing in India in 2011 and since then has made multiple investments in the country.

Its other most recent deals in India this year are Gurugram-based online lender OfBusiness and domestic remittance service provider Eko India Financial Services Pvt. Ltd.

Deals in the space

A host of NBFCs have raised funding in the past few months.

Last week, WheelsEMI, which provides financing for pre-owned two-wheelers, raised Rs 100 crore (about $14 million) in a Series B round of funding led by mid-market private equity firm Faering Capital.

Earlier this month, private equity giant Warburg Pincus led a Rs 520-crore investment in Delhi-based Fusion Microfinance.

In November, Jaipur-based Kogta Financial (India) Ltd had raised Rs 154 crore ($22 million) in a funding round led by Morgan Stanley Private Equity Asia.

In the same month, NBFC Fedbank Financial Services Ltd’s board approved a Rs 168.6-crore investment by homegrown private equity firm True North for 17.4% stake.

In October, TPG Growth led a $42-million (Rs 311 crore) funding round in NBFC Ess Kay Fincorp Ltd. TPG Growth is the growth capital arm of US private equity firm TPG Global.

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