Vivriti Capital Bags $30 Mn From TVS Capital To Close Series C; Total Funding Reaches $200 Mn

Fintech startup Vivriti Capital has raised an additional $30 Mn in a Series C funding round from TVS Shriram Growth Fund 3, a private equity fund managed by TVS Capital. 

The funds will be utilised for business and technology expansion for customer acquisitions, product delivery and portfolio management, the startup said in a statement. 

The Chennai-based startup already raised $55 Mn in the first close of its Series C funding in March 2022 from existing investors Lightrock and Creation Investments.

Vivriti Capital has secured about $200 Mn in total funding so far since 2017, according to the startup.

The funds will be allocated to Vivriti Capital and its subsidiary Vivriti Asset Management, which manages closed-ended debt funds investing in mid-sized corporations, it said. 

The purpose of the equity raise is to focus on the mid-market debt space, bringing global and domestic investors to mid-sized enterprises at scale. 

Founded in June 2017 by Vineet Sukumar, Vivriti Capital offers financial services, investment banking, and advisory services to customers. The fintech startup primarily focuses on investment in technology, underwriting and distribution. It claims to have a portfolio of INR 3,700 Cr and more than 300 clients across India. 

“The Indian performing credit space has displayed great potential, especially in the months following the pandemic. The latest round of funding will enable us to deepen our engagement with our clients as well as invest in technology and product development,” said Vineet Sukumar, founder and CEO, Vivriti Capital and Vivriti Asset Management.

According to Vivriti, its subsidiary, Vivriti Asset Management has raised commitments of more than INR 2,000 Cr across its funds, and provides tailored debt of INR 25-75 Cr to emerging and mid-sized operating companies for a tenure of 2-4 years.

At present, Vivriti Capital is aiming to become the largest technology-enabled mid-market debt lender in India with assets of more than $5 Bn over the next four to five years. The fintech startup further claims to achieve this target using a combination of high quality and diversified balance sheets at its NBFC and a pioneering ‘managed’ book through Vivriti Asset Management. 

As per its statements, Vivriti Capital and Vivriti Asset Management have established leadership positions with $700 Mn in AuM, commitments and debt lines from the top 10 banks in India as well as leading international debt investors.

Before this funding round, Vivriti Capital raised INR 100 Cr (about $14Mn) funding from existing investor Creation Investment in September 2020.

The startup raised $50 Mn in its Series B funding from LGT Lightstone’s India focussed investment platform LGT Lightstone Aspada in March 2020.

In February this year, Vivriti Capital invested an undisclosed amount in Infra.Market’s $30 Mn debt funding round. The round saw participation from Sachin Bansal’s NAVI Finserv, IFK Finance, Meesho’s Vidit Aatrey, Incred Wealth, CredAvenue, and Sanjeev Kumar, among others.

Vivriti Capital, in November last year, pumped in B2B online lender Indifi about $45 Mn equity and debt funding round. CX Partners and OP Finnfund Global Impact Fund I, along with existing investors CDC Group, Omidyar Network, Flourish Ventures, Elevar Equity and Accel invested about $19 Mn in the startup’s ongoing Series D round.

Indifi secured INR 165 Cr in debt financing from Vivriti Capital, Northern Arc, SIDBI, among others, while the US International Development Finance Corporation has guaranteed INR 35 Cr to the startup.

Meanwhile, India’s overall fintech market opportunity is estimated to be $1.3 Tn by 2025, growing at a CAGR of 31% during 2021-2025, according to a report by Inc42. 

Of this, lending tech is likely to account for 47% ($616 Bn), followed by insurance tech at 26% ($339 Bn) and digital payments at 16% ($208 Bn).