IntelleGrow, a Mumbai-based venture debt company for SMEs announced that it is in talks to raise a fresh round of funding. The Company has held discussions with numerous global investors and international development agencies. The actual amount it will raise may vary from INR 150 crores to INR 200 crores between long term debt, nonconvertible debentures and equity over the next 15 – 20 months. In March 2014, IntelleGrow raised INR 280 million from Omidyar Network and Michael & Susan Dell Foundation in a bid to address India’s burgeoning credit gap in the SME Sector.
Sanjib Jha, CEO, IntelleGrow, said “We are at the initial phase of discussions to raise a fresh round of funding. We constantly come across the need for additional capital as we lend to enterprises in the early stages that find it hard to secure finance from traditional banks. With hundreds of worthy companies to meet and engage, access to additional capital for these companies would unlock solutions to India’s development challenges.” He added, “This will be our second round of institutional funding.”
To date, IntelleGrow has disbursed more than 65 loans, totaling more than USD 15 million to SMEs across India. Promoted by Intellecap and registered as a Non-Banking Finance Company (NBFC), IntelleGrow uses a unique model that unlocks capital for innovative entrepreneurs. IntelleGrow’s investee companies could deliver sustainable large-scale impact to help solve India’s development challenges, but they previously lacked access to the right type and timing of finance in order to achieve their full growth potential. IntelleGrow helps fill that need.
IntelleGrow provides viability-based debt financing to fast growing early-stage enterprises with a turnover of less than INR 500 million and at least 12 months of track record. It offers customised financing solutions using flexible repayment schedules linked to cash flows. Coupled with fast turn-around times, IntelleGrow’s process and approach innovations remove barriers to the growth of small and medium enterprises in India. Some interesting facts about the Company are:
· 100% of the entrepreneurs that IntelleGrow has supported are first generation entrepreneurs and among them 45% of the enterprises are start-ups.
· IntelleGrow is a first lender to more than 70% of its borrowers, and lending has leveraged an additional INR 7000 million in investment in these companies;
· 25% of IntelleGrow’s portfolio companies engage suppliers and producers from low-income community and also employ workers from low income and underserved communities.
