InnoVen Capital, Asia’s leading venture debt firm,has recently closed two cross‑border financing deals through its presence in both India and South East Asia. These deals are with Capillary Technologies – an Omni-channel Engagement and Commerce solution company and has a stronghold in India, South East Asia, MENA and China among other countries, and Simplilearn Solutions–one of the largest online professional certification providers focused on the US and Indian markets along with South East Asia. These structured debt deals amounting to ~USD 6 million in aggregate are holistic solutions that take into account the global operations and resulting financing needs of both these high-growth and high-potential businesses.
Ajay Hattangdi, Group COO and CEO India, InnoVen Capital commented, “InnoVen Capital is an early supporter of emerging entrepreneurial companies across our current key markets of India and South East Asia. Many of these companies are looking beyond their home markets as they advance on their global ambitions. InnoVen Capital’s unified venture debt platform which is integrated across our regional teams helps clients to access growth capital globally. Our ability to provide loans across geographies enables clients like Capillary and Simplilearn to rationalise costs while enjoying more flexibility in their funding options. Going forward, we expect many more companies to take advantage of our cross-border platform capability”.
InnoVen Capital that started as India’s first and largest venture debt provider started operations in South East Asialate last year and announced its first two deals in the markets outside India in March’16: Malaysia-based online health and fitness company KFit, and Thailand-based e-commerce fast fashion company Pomelo.
With these latest cross border deals,InnoVen Capital has demonstrated its focus on fuelling growth of high-growth innovative ventures in India that have global aspirations. InnoVen Capital’s first engagement with Capillary was back in 2014 and since then has backed the company several times,in tandem with the company’s financing needs such as acquisition financing and now, cross border funding.
Speaking on the relationship with InnoVen, Aneesh Reddy, CEO Capillary Technologies said, “Capillary Technologies is committed to launch industry-first Omni-channel innovations for Asian Retail market.We continue to grow 2X YoY with a strong focus on profitability. InnoVen has been an entrepreneur-friendly venture debt partner and their ability to provide financing at various stages of our growth continues to help us immensely in our journey.”
Krishna Kumar, CEO Simplilearn Solutions added, “We are happy to have InnoVen Capital join the Simplilearn growth story. InnoVen’s debt capital allows us to leverage the business and create more value for all our stake holders.”
Temasek and United Overseas Bank (UOB), the two main investors in InnoVen Capital, have committed a total of USD 200 million for building out the platform in Asia. InnoVen Capital expects to commit over USD 500 million in venture debt transaction to high-growth innovative start-up companies across the globe over the next five years. According to an EY report on venture debt, the potential market size for venture debt in India, China and Singapore between 2015 and 2019 is USD 2.2 billion.