In its largest fund-raising, venture debt firm IntelleGrow is to raise $100 million (about ₹700 crore) through a combination of debt and equity in the next 12 months. The funding, which will be raised in tranches, would be used for retiring debt and for lending purposes.
20% equity, 80% debt“We have just started the process of raising funds. We are looking at $100 million, of which 20 per cent would be equity and the remaining debt. The equity part will be raised in the next three months, while the debt will be raised over the year as and when we need to deploy it,” its CEO CEO Akbar Khan told BusinessLine in an interaction.
“This would be the largest raise, even though this time it would be a combination of equity and debt. We have to raise these funds as we have set targets to reach disbursements of ₹750 crore by March 2018,” Khan, who took over as CEO earlier this year, said.
The Mumbai - headquartered company is in talks with both Indian and foreign PE firms for raising funds through equity in lieu of a minority stake that is yet to be decided. IntelleGrow will retire debt of about ₹220 crore, and the remaining will be used for on-balance sheet lending, he added.
However, he declined to name the PE firms IntelleGrow was in talks with.
So far, the company has raised ₹120 crore from Michael and Susan Dell Foundation, Omidyar Network, fund manager DWM, Triodos Bank and Shell Foundation in many tranches. In June last year, it raised about ₹134 crore ($20.14 million) from existing investor Omidyar and a clutch of new investors. IntelleGrow, which started in 2012, is a part of Aavishkaar-Intellecap group and got its NBFC registration from RBI as Jain Sons Finlease Ltd.
For the full year ended March 2017, the company disbursed loans of about ₹320 crore and increased the assets under management to ₹315 crore. This is nearly double of its loan disbursals and AUM reported during the previous year.
“We had a strong year. Going forward, we are looking to double our AUM every year, and expect our client base to rise proportionately,” he said.
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