Temasek buys SVB's India venture debt business

According to a regulatory filing, SVB will sell a 100% stake in the business - SVB India Finance (SVBIF) - in order to focus its efforts on other strategic areas. SVB said that, subject to the agreement, it would continue to work with Indian-based companies as they seek to expand globally, but largely on a non-lending basis.

SVB launched its India operations in 2008. The company offers debt capital to domestic, venture capital-backed, early and mid-stage companies in India. It provides collateral free loans of up to INR150 million on six-months to three-year terms. The company has previously backed the likes of Snapdeal, iYogi, BlueStone, Capillary, CarWale, FirstCry, Faaso's, Freecharge and Perfint.

SVB said that, based on the transaction, it expected to include a post-tax loss of about $11.4 million in its fourth quarter results. The venture capital investor will still have exposure to India through SVB India Capital Partners, which typically co-invests alongside other funds. The firm also owns SVB India Advisors - a cross-border consultancy.

The deal further bolsters Temasek's presence in India's financial services sector. The government-backed investment fund has its own non-banking financial company (NBFC), Mumbai-based Fullerton India Credit Company (FICCL). It is one of the largest foreign-owned NBFCs in the country with around $1 billion in assets under management and 397 branches nationwide.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Financials
• Financing
• India
• Financial Services
• Temasek Holdings
• NBFCs
• SVB