The growth in Innoven's loan disbursal comes at a time when startups are finding it difficult to raise equity funding in a challenging market.
Singapore’s Temasek-backed venture debt provider InnoVen Capital has disbursed USD 75 million in 2017 across companies, reporting a 25 percent year on year growth, the company said in a statement this week.
The growth in Innoven's disbursal comes at a time when startups across sectors are raising debt instead of dissolving equity in a difficult venture fund market, starved for right valuations.
The firm added 22 new companies to its portfolio, including many mid-growth ventures in the Indian startup landscape including Blackbuck, Pepperfry, NestAway, ShopClues and Mswipe.
Around 30 percent of the total debt funding disbursed by Innoven in 2017 was towards B2B firms. B2C companies took majority share of 70 percent.
The key sectors for 2017 were e-commerce, enterprise-tech, logistics, travel and food.
The platform also expanded its pan-Asia footprint with the launch of their offices in China, after which InnoVen now has a presence across India, SE Asia and China.
According to Innoven Capital, the funding activity accelerated in India during the latter half of 2017.
Innoven also doubled its ticket size to Rs 20 crore during the second half of the year, as compared to the first half.
This upswing in the funding amount and frequency was led by repeat business conducted with high-growth portfolio companies such as Oyo Rooms, Swiggy, Capillary Technologies, Rentomojo and Belong, which raised debt.
Innoven so far invested around USD 270 million in 110 companies across over 165 transactions.
"In 2017, we observed strong adoption of venture debt in the growth stage companies which comprised nearly 60 percent of our total funding. The growth that we have registered, be it in terms of funding amount, number of deals, or geographical expansion, has served to cement our standing as a leading venture debt firm in Asia and our underlining commitment to support innovative ideas and businesses," said Ashish Sharma, CEO, InnoVen Capital India.
Sharma was hired as the CEO of Innoven in October, a few months after Ajay Hattangdi and Vinod Murali, quit the platform to launch their own venture debt fund.Hattangdi and Murali were the two executives who had set up Innoven Capital along with Temasek.