Mumbai-based finance platform for small and medium social enterprises IntelleGrow has announced Rs. 28 crore fresh investment led by Omidyar Network and Michael & Susan Dell Foundation. The round was also participated by Shell Foundation and Intellecap. Omidyar Network pumped in Rs.25 crore while Rs.3 crore comes from Dell Foundation.
IntelleGrow will use the funds to help Indian enterprises access capital for growth. The platform offers customised financing solutions using flexible repayment schedules linked to cash flows. It invests in fast growing early-stage enterprises with a turnover of less than Rs. 50 crore and aims to remove barriers to the growth of startups in India.
Brainchild of eBay founder Pierre Omidyar, Omidyar Network involves in philanthropic investment dedicated to harnessing the power of markets to create opportunity for people to improve their lives.
Unlike most of the formal lenders who offer collateral-based lending to enterprises and require three years of profitable track record, Intellecap sees only 12 months track record of fast growing SMEs.
Speaking about the investment, Sanjib Jha, CEO and Director, IntelleGrow, said, “Businesses in their early stages need debt at the right time to sustain and create value and not only be dependent on equity. Our offering in the form of venture debt creates value for promoters and investors and helps multiply the social impact. The fresh round will help us further boost the SMEs ecosystem in India.”
With the capital infusion, IntelleGrow plans to lend to more than 250 companies across India by end of early 2017.
Founded in 2012 with seed investment from Intellecap and Shell Foundation, IntelleGrow has invested in sectors like modern energy, agriculture supply chain, healthcare, water and sanitation, education, and financial inclusion. In February this year, Intellecap invested in rural healthcare startup iKure.
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