InnoVen Capital disburses $75 million in 2017, eyes double-digit growth in 2018

Venture debt firm InnoVen Capital India has closed 2017 with over Rs 477 crore ($75 million) in deployment through the year, sticking to script. The Temasek-backed specialty financing firm registered an annual growth of 25% having added 22 new companies to its portfolio this year.
InnoVen Capital has also committed facilities of $10 million taking the entire disbursement quantum to $85 million (Rs 541 crore) this year across 35-40 deals, meeting its projected target of $80-100 million for FY18.
“The pace of deployment has doubled in the past four months where we have done more than what we did in the first eight months of 2017. We also observed strong adoption of venture debt in growth-stage companies which comprised nearly 60% of our total funding,” said Ashish Sharma, CEO of InnoVen Capital.
However, a closer look at the numbers shows that a large part of the growth for the venture debt provider has come from the first quarter of 2017 where it deployed $37 million (Rs 238 crore) growing at its highest pace. The significant growth in InnoVen’s deal dynamics also comes on the back of the largest venture debt deal of Rs 100 crore to online travel marketplace Yatra, a cross-border deal that saw both the Singapore and Indian entities of the firm participate equally.
ET had reported in October that the third quarter of 2017 saw the firm deploy $26 million which effectively means the firm closed the final $12 million in the last quarter of the year, thus making it the slowest quarter for InnoVen Capital India in 2017.
So far the largest venture debt provider in the country, InnoVen Capital India saw a management flux in July 2017, with top executives Ajay Hattangdi and Vinod Murali leaving the firm to start a new venture Alteria Capital. At a fund size of Rs 1,000 crore, Alteria Capital is touted to be the biggest venture debt provider in India.
For InnoVen Capital, over 40% of the $75 million deployed in 2017 has come from follow-on rounds in growth stage companies such as OYO Rooms, Swiggy, Capillary Technologies, RentoMojo and Belong. This has also led to larger ticket sizes for the firm, growing 100% to Rs 20-22 crore. With this, the total amount of venture debt extended by InnoVen India since its inception in 2008 has crossed $270 million across 165 deals in over 110 companies.
However, a slew of venture debt players flush with funds or seeking to raise capital in 2018 including Alteria Capital, Trifecta Capital, Ivy Cap Ventures and Unicorn India Ventures would mean that 2018 will be a crucial year for venture debt in the country.
Despite an impending surge in the market supply, InnoVen Capital is unperturbed at best. “Based on what we see, especially with the pace of deployment increasing, we are targeting to cross $85 million in 2018. We hope to grow in double digits in the coming year,” said Sharma.