[Funding alert] Digital lending startup Vivriti Capital raises $50M in Series B round from LGT Lightstone Aspada

Digital enterprise lender Vivriti Capital on Wednesday said that it has raised $50 million (around Rs 350 crore) as part of its Series B funding from LGT Lightstone Aspada.

The latest round comes within 10 months of the startup raising $50 million from US-based Creation Investments, raised across two tranches between December 2018 and March 2019.

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With this round of investment, the total capital picked up by the startup stands at around $100 million. 

Speaking to YourStory, Co-founder of Vivriti Capital, Gaurav Kumar said that the capital will be used for scaling up the startup's balance sheet and raise more debt. Another part of the investment will be utilised to further expand its technology and data science functions.

Through this funding, the startup aims to expand its technology team to 100 members by next year.

Founded by Gaurav Kumar and Vineet Sukumar in 2017, Vivriti owns the proprietary enterprise debt deal and value discovery online platform - CredAvenue. The tech-enabled platform connects high-quality debt issuers and investors efficiently, offers credit underwriting solutions, analytical models, cutting-edge structuring solutions, and automated execution workflows.

To date, the platform counts over 2,000 users and has facilitated deal flows of over Rs 25,000 crore.

Speaking on the fund-raise, co-founders Gaurav Kumar and Vineet Sukumar, in a joint statement said,

“We are very pleased to bring Lightstone Aspada on board as an investor at this key phase of our journey. We’ve also achieved tremendous growth in the last 12 months, we’ve seen significant scale across debt products and the business volumes crossed Rs 25,000 crore in overall debt flow. This investment from Lightstone will be used to significantly ramp up the technology and analytical engine powering the online marketplace, and to shore up the balance sheet lending of the company, thereby serving many more clients on our platform in the coming year.”

At present, Vivriti Capital lends across three lines of business through its affiliate platforms – its B2B financial services business which has over 270 clients including NBFCs and housing finance companies; its B2C enterprise business, and its B2C co-lending platform, which has already reached a loan book size of Rs 500 crore since its launch this year.

The startup claims to have an active loan book size of Rs 1,600 crore.

Speaking on the investment, Kartik Srivatsa, Managing Partner of LGT Lightstone Aspada said,

“We are excited to back the team at Vivriti in helping build India’s largest debt platform. Over the last few years, we have tracked their progress keenly and have been impressed by the quality of execution. We believe that the combination of their tech platform and strong product development capabilities bring much-needed innovation in the space towards expanding the supply of ‘rightly priced’ debt to high impact businesses.”

The startup says that it turned profitable, registering Rs 2 crore in profits as of FY19. It expects to make profits of Rs 11 crore by the end of December 2020.  

It also plans to take total credit deployed through its marketplace CredAvenue to Rs 30,000 crore by the end of FY20 and Rs 50,000 crore by FY21.  

Avendus Capital was the sole financial advisor on this deal.

(Edited by Suman Singh)