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Nisus Finance’s NBFC arm strikes debut venture debt investment

04 July, 2018

Nisus Finance, which recently set up its non-banking financial company (NBFC) named Nisus Fincorp, has sealed its debut deal through the lending platform. The firm has invested $250,000 in venture debt in Bengaluru-based co-working startup ClayWorks Spaces Technologies Pvt. Ltd, the company said in a statement.

ClayWorks will use the capital to operationalise its new boutique shared office space located off MG Road in Bengaluru and to open two new centres in Koramangala and Bannerghatta Road.

With the two new centres, ClayWorks’ total seating capacity will cross 1,000 within this financial year, the company said.

The investment is part of Nisus Finance’s strategy to invest in high-growth startups and early-stage firms through its new NBFC.

“It is our endeavour to support enterprises with strong management, fantastic execution skills and a clear business plan, to meet their order book requirements and bridge their cash flow mismatches through our capital engagement,” Amit Goenka, managing director and chief executive officer, , said in the statement.

ClayWorks Spaces Technologies offers landowners and entrepreneurs office spaces, where they can also partner with the firm, the company’s website states. The company claims that it opened its first centre at JP Nagar in Bengaluru comprising nearly 90 seats, which saw 100% capacity within the first three months and the next centre was already 50% full within the first week of opening.

The venture is run by Rahul Singh, who has worked in senior capacities at real estate consultancy Knight Frank and financial services firm Essel Finance, and Abhijith Shashidhar, who has successfully run technology startups while promoting a real estate development advisory practice.

“There is a huge un-catered demand for co-working spaces from young firms and startups, especially in the financial services, consulting and technology development spaces, which need a more structured yet non-imposing environment. Our centres are in high demand since they are not huge, create a sense of belonging with its earthy design and atmosphere, and are strategically located. Both, the young entrepreneurs as well as those starting mid-career innings work very well here, without having to pay top dollars for the larger formats,” co-founder Singh said in the statement.

ClayWorks’ other co-founder Shashidhar said that Nisus Finance’s CEO Goenka may join its board.

Nisus Finance recently invested about $4.5 million in RDP Developers’ Mera Ghar project at Shilphata, Thane focused on mid-income dwelling units under Rs 35 lakhs.

“The total capital available for venture debt is less than 5% of the total private equity market space in India. There are several enterprises that are already profitable, having strong cash flows and have an undeniable business imperative, but struggle to raise working capital and bridge finance from classic financial institutions,” Goenka added.

Nisus Finance is an asset management and advisory firm that runs a Rs 350-crore SEBI alternative investment fund offering mezzanine finance for mid-market residential developments.

Other firms that offer venture debt include InnoVen Capital, Alteria Capital, Trifecta Capital, Unicorn India Ventures, IntelleGrow and IvyCap Ventures.

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Nisus Finance’s NBFC arm strikes debut venture debt investment

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