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Vivriti Capital raises $30 million from TVS Capital Funds, inches closer to unicorn tag

The fundraise is part of the company's $85 million Series C round. Vivriti Capital had raised $55 million of the total amount in March this year from existing investors Lightrock India and Creation Investments.

May 12, 2022 / 09:57 AM IST
(Representative image)

(Representative image)

Chennai-based Vivriti Capital, a lender to mid-market enterprises, has raised an additional $30 million as part of its Series C round from TVS Capital Funds, the company said on May 12. The infusion was made through TVS Capital Funds' TVS Shriram Growth Fund 3.

The company already raised $55 million in the first close of its Series C funding in March, from existing investors Lightrock and Creation Investments. This infusion takes the total amount of funds raised by the company from external investors to $195 million.

While the company did not reveal its exact valuation, it had said in March that the valuation has increased three times from its Series B round, and is now close to becoming a unicorn i.e. a privately held company with a valuation of $1 billion and above, as per sources close to the company.

The funds will be allocated between Vivriti Capital, which is a fintech non-banking financial company (NBFC) and its subsidiary Vivriti Asset Management, which manages closed-ended debt funds investing in mid-sized corporates, the company said.

The funds will be utilised for business expansion, as well as technology for customer acquisition, product delivery and portfolio management. Vivriti Capital and Vivriti Asset Management enable global and domestic investors to invest in mid-sized enterprises.

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Vineet Sukumar, Founder & CEO of Vivriti Capital and Vivriti Asset Management said, “With this investment from TVS Capital, we are bringing to our cap-table an extremely aligned partner with expertise and a long-term commitment towards the Indian fintech space."

"The Indian performing credit space has displayed great potential, especially in the months following the pandemic. The latest round of funding will enable us to deepen our engagement with our clients as well as invest in technology and product development,” he added.

Vivriti Capital was co-founded by Sukumar and Gaurav Kumar in 2019. The duo also co-founded unicorn debt marketplace CredAvenue which is led by Kumar, while Vivriti Capital is headed by Sukumar. Both the founders continue to be on the boards of CredAvenue and Vivriti Capital.

Besides lending in partnerships with banks and global debt investors, Vivriti Capital provides investment banking and advisory services to its clients.

TVS Capital Funds is also an investor in CredAvenue and participated in the startup's $90 million Series A round, one of the largest equity Series A rounds among Indian fintechs.

Gopal Srinivasan, Chairman & Managing Director of TVS Capital, said, "Corporate credit in India is underpenetrated, with borrowings at <60% of GDP, well short of global benchmarks. The Indian debt markets are poised to deepen, driven by growth of credit to the financially under-served segments, where Vivriti has thrived in terms of growing its loan book while maintaining the best-in-class asset quality."

Vivriti Capital has a target of $5 billion assets under management over the next four to five years, up from the current $700 million. The company plans to achieve this through its balance sheet and that of its Vivriti Asset Management.

The firm has over 300 clients across 26 states and claims to have a 90 percent client retention. Vivriti Asset Management provides debt in the range of Rs 25 to 75 crore to emerging and mid-sized operating companies for a tenure of two-four years.

Avendus Capital was the exclusive financial advisor to Vivriti Capital on this transaction.



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Priyanka Iyer
first published: May 12, 2022 09:53 am
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