InnoVen puts Rs 550 crore capital in 53 deals in FY17

MUMBAI: Venture debt firm InnoVen Capital has made the most of a year, when venture capital has been a hard asset to come by, clinching a two-fold growth in its deployment pace in FY17.

The Temasek-backed firm has invested almost Rs 550 crore ($85 million) across 53 deals, including follow-on rounds, while adding 31 new companies to its portfolio this year.

"It is difficult for conventional lenders to embrace loss-making, high-growth startups, but there is a clear need for alternative sources of capital for founders with minimal dilution. It is heartening to see that the focus across most startups has shifted decisively towards profitability and better unit economics vs expensive growth, which allows for sustainable businesses to be built on better foundations," said Vinod Murali, deputy CEO India at InnoVen Capital, explaining the rationale behind the emergence of venture debt as an attractive asset for capital-starved startups.

InnoVen Capital closed deals worth Rs 238 crore ($37 million) across 17 companies in Q4 of FY17 alone ­ more than double the Rs 110 crore it lent in Q3. The specialty finance firm counts OYO Rooms, Swiggy, NestAway, Pepperfry and Coverfox among its marquee deals. Murali said about a third of the firm's FY17 lending comes from follow-on rounds.

InnoVen Capital is one of the top three venture debt firms in the country that has ramped up its pace of lending in the last 12 months.