InnoVen ramps up India venture debt funding
InnoVen Capital has provided more than $20 million in venture debt across 15 deals for new and existing portfolio companies in India in the second quarter of the 2017 financial year.
Among InnoVen's new investees are Oyo Rooms, a travel planning start-up backed by SoftBank Group and Sequoia Capital; DSG and Sequoia-backed juice maker Raw Pressery; and Bertelsmann-backed budget hotel chain Treebo. The firm also funded some current portfolio companies including fashion e-commerce portal Voonik and online jeweler BlueStone.
This represents a significant jump in activity from the first quarter, when InnoVen provided $12 million in loans to about eight start-ups. The firm is seeking to invest a total of $70 million in the current fiscal year.
InnoVen also launched two new initiatives in the second quarter: InnoVenConnect will provide additional networking opportunities for early-stage founders and investors, and InnoVenSupport will assist start-ups with finance, marketing and legal issues, among others. The firm has been working with its partner banks to offer investees additional debt products to suit their needs.
Founded in 2008 as SVB India with the backing of US-based Silicon Valley Bank, InnoVen was acquired and renamed last year by Singapore's Temasek Holdings, with UOB later taking a 50% stake. The firm sees venture debt as a promising asset class as Indian companies mature and seek funding options beyond venture capital, coupled with a recent slowdown in Indian VC investing.
"While the equity environment continues to remain lukewarm, we believe that strong businesses are able to attract capital, both equity and venture debt - in fact, venture debt is growing in proportion to equity," InnoVen Managing Director Vinod Murali said in a statement.
InnoVen is also seeking opportunities in Southeast Asia. The firm recently made its first investment in the region, committing a total of $5 million in loans to Malaysia-based gym membership app KFit and Thai fashion retailer Pomelo. It is also supporting Indian start-ups looking to expand in the region, having committed $6 million to cloud-based software provider Capillary Technologies and educational technology developer Simplilearn.
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