IntelleGrow Launches India’s First SME Debt Pool Program in Collaboration with Symbiotics, Geneva

IntelleGrow, a leading venture debt financing arm of Intellecap Group, launches India’s first SME Debt Pool Program in collaboration with Geneva-based leading global investment company Symbiotics to bring international financing to small corporates and medium enterprises (SME) in the country through innovative financing structure. This collaboration is aimed at supporting social enterprises in India which find it difficult to raise sufficient debt facilities to meet their funding needs. Under this arrangement, the first structured finance transaction has been closed with financing of a pool of seven SMEs amounting to approximately INR 320 million (USD 5.3 million). This launch is a part of IntelleGrow’s thrust in fostering innovative financing to SMEs in collaboration with international partners like Symbiotics. It also adds to Symbiotics’ growing expertise in the area of emerging market impact bonds.

The transaction saw multiple Indian SMEs from diverse impact sectors grouped together to raise funds on European capital markets via a single bond securitization issuance. IntelleGrow acted as the sole India-based origination partner which facilitated assessment, underwriting and monitoring of the pool drawn from its portfolio of enterprises to whom it has lent earlier. SMEs have received INR 320 million debt financing with fixed interest payments without any forex risk. This innovative instrument is very useful for capital starved Impact SMEs often known as “missing middle” as they are largely under-banked. This funding is especially helpful in funding both the working capital needs and also the capacities of growing SMEs. This pool includes a Milk processing company which has a presence in more than 1,000 villages in North India and aims to increase its milk procurement capacity from more and more farmers. It also included an SME engaged in collection of waste paper in an organised manner and facilitating its recycling. Another engaged SME is enhancing access of oncology curatives while yet another SME in this pool is developing warehousing infrastructure for agri-produce. These diverse enterprises are enhancing livelihood opportunities besides contributing to social development.

Speaking on this association, Nitin Agrawal, Deputy CEO of IntelleGrow said, “We are keen to grow this collaboration with Symbiotics and help in facilitating more such SMEs from our portfolio with innovative structured financing options meant to bring patient debt funding to Indian SMEs.”

This pool program enables impact investors to invest in a group of impact-driven Indian SMEs, which don’t have to pledge hard collaterals as security unlike existing market accesses. This comes in the backdrop of thrust from Make in India campaign besides the Start-up India and Stand-up India also creating an ecosystem projected to further improve the GDP contribution and employment generation by early-stage enterprises and start-ups in India. IntelleGrow and Symbiotics are planning to put forward similar structures in the near future.

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IntelleGrow Announces Capital Raise of Rs 134 Cr in Equity and Long Term Debt

Mumbai based IntelleGrow announced fund raise of Rs.134 crore in Equity and long term debt from Triodos, Developing World Markets (DWM), Omidyar Network (ON), Calvert Foundation and Overseas Private Investment Corporation (OPIC). IntelleGrow is India’s largest venture debt firm.

IntelleGrow, promoted by Intellecap group, is a lending platform providing cash flow based debt product to early stage, high risk, high growth underbanked companies in India.  Conceptualized by Intellecap as a pioneering initiative in the Impact Venture Debt stage for Micro, Small and Medium enterprises, Intellegrow has received support from the Shell Foundation both financially and strategically during its early years. Omidyar Network (ON) and Michael and Susan Dell Foundation (MSDF) participated in earlier capital raise for IntelleGrow’s.

Vineet Rai, Chairman of IntelleGrow said “Indian early stage ecosystem has been starved of quality debt providers who could offer cash flow based lending. IntelleGrow pioneered this concept with an impact thesis and the current fund raise would allow us to provide substantial funds to start up ecosystem in India.”

IntelleGrow has so far funded 100 enterprises across various emerging themes and its portfolio include cutting edge technology startup such as SEDEMAC, ATM management company Electronic Payment System, and ophthalmologic companies such as EYE-Q. The unique model of IntelleGrow encompasses funding to the enterprises at all stages of Growth, both directly and indirectly.

IntelleGrow is one of the few Venture Debt firms across the world that has leveraged their balance sheet at their nascent stage. It has borrowings from 11 lenders – including two Foreign Portfolio Investors (FPIs).

Nitin Agarwal, Deputy Chief Executive Officer of IntelleGrow said “We are delighted to have reputed global investors such as Triodos and DWM join us to support our mission. We believe our emerging partnership with OPIC and Calvert Foundation will strengthen our ability to support more enterprises in India.”

This fund raising comes in the backdrop of thrust on Make in India campaign besides the Start-up India and Stand-up India also creating an ecosystem projected to further improve the GDP contribution and employment generation by early-stage enterprises in India.