Venture debt lender IntelleGrow Finance in talks to raise Rs 150-200 crore fund
The Mumbai-based NBFC has held discussions with some of the biggest international development agencies, including International Finance Corp.
The Mumbai-based non-banking finance company (NBFC) has held discussions with some of the biggest international development agencies, including International Finance Corp, the private lending arm of the World Bank and Germany’s KfW and DEG. Sanjib Jha, chief executive of IntelleGrow, confirmed that the NBFC was in the market to raise a new round of funding, but refused to disclose the names of the potential investors, citing the early stage of negotiations.
“There is a constant need for capital, given that we lend to early-stage enterprises that rarely get financing from the banks,” said Jha. Emails sent to IFC, KfW and DEG did not elicit any response at the time of going to press. If successful, this will be IntelleGrow’s second round of institutional funding in the last three months.
In March earlier this year, ET was the first to report that the company had raised Rs 28 crore from Omidyar Network, the philanthropic investment firm established by eBay founder Pierre Omidyar and existing backer Michael and Susan Dell Foundation.
IntelleGrow, which provides debt, ranging between $100,000 (about Rs 60 lakh) and $600,000 (about Rs 3.6 crore) to early-stage ventures that cater to India’s poor, counts companies such as renewable energy venture Husk Power and more in its portfolio. IntelleGrow is looking at raising a mix of long-term debt and equity in the new round.
“We’re looking at equity funding of between $10 million (Rs 60 crore) and $15 million (Rs 90 crore), with the rest as debt,” said Jha. The NBFC will look to fund at least 100 ventures within the next 12 months. At present, it lends to about five startups every month.