Vivriti Capital’s online enterprise debt platform CredAvenue has helped Ess Kay Fincorp (“Ess Kay”), a non-banking finance company raiseINR 86 Cr in debt funding from funds managed by responsAbility AG, the Swiss asset manager. The debt was raised in the form of NCD’s (Non-Convertible Debentures) via VRR (Voluntary Retention Route). This Voluntary Retention Routewas introduced by the Reserve Bank of India (“RBI”) in 2019 to enable Foreign Portfolio Investors with a new channel to undertake long term investments in Indian Debt Capital market.
Jaipur-based Ess Kay operates through a network of 313 branches in six states across north and western India, with more than 2.25 lakh customers. It provides financing to commercial vehicle segment and small business in rural and semi-urban pockets across North and Western India. The fund raised from responsAbility will be used for further on-lending to its customers.Ess Kay aims to provide sustainable financing solutions that not only empower its customersin the Commercial Vehicle segmentbut also help small CV owners graduate into Small Road Transport Operators.
The deal helps bring the spotlight on the used CV Financing space in India which plays a critical role in promoting trade and entrepreneurship particularly in the rural segments. After microfinance, SME and affordable housing, this sector is gaining traction for its ability to absorb impact capital.
Commenting on the occasion, Sharad Venugopal, Senior Investment Officer for Financial Institutions Debt at responsAbility said: “We are delighted to welcome EssKay in to our India portfolio, and look forward to supporting their growth – and the financial inclusion of lakhs of their customers – in the coming years”.
Mr. Vivek Singh, Head – Treasury of Ess Kay said, “The confidence reposed by responsAbility on us is a validation of the robustness of our business model and our governance practices. Moreover, the transaction will further strengthen and diversify our resource mix. Our endeavour has and always will be to help customers further grow their small enterprises thereby creating large scale impact in the rural economies.”
The entire deal initiation, structuring and execution was carried out on Vivriti Capital’s CredAvenue. The platform which offers a host of debt products ranging from securitisation, NCDs, ECBs to term loan syndication has thus far facilitated cumulative deal volumes of over INR 23,000 Cr through 1100+ debt transactions.
About Ess Kay Fincorp:
The company was founded in 1994 by first generation entrepreneur Rajendra Setia. Ess Kay Fincorp has a presence in over 300+ locations in Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, Punjab and Haryana. It has more than 160,000+ customers, employs close to 4000 people and has a loan book of Rs.2,900+ crore.
A leading impact asset manager with a 17-year track record, responsAbility manages over USD 3 bn of assets invested in 450 fully ESG-compliant high-impact companies across 90 emerging economies. Since the company’s inception in 2003, responsAbility-managed funds have disbursed USD 10 bn in private debt and private equity to companies in the sectors of climate finance, sustainable food and financial inclusion whose business models directly support the United Nation’s Sustainable Development Goals (SDGs).
responsAbility is headquartered in Zurich, Switzerland, and has local offices in Bangkok, Geneva, Hong Kong, Lima, Mumbai, Nairobi, Oslo, Paris and Tbilisi. Owned by various reputable Swiss and international financial institutions, private investors and its own employees, responsAbility is registered with the Swiss Financial Market Supervisory Authority FINMA.
About Vivriti Capital:
Started in mid-2017 by Gaurav Kumar and Vineet Sukumar, Vivriti Capital received approval from the Reserve Bank of India to float a NBFC in January 2018. The platform now works with over 200+ clients across 12 sectors and 120+ investors. Vivriti has facilitated transactions of over INR 23,000 Crores.