Creation Investments invest US$12 Million debt capital in Three Indian Firms; Partners with CredAvenue to enable better financial services access
Bengaluru, India, April 13, 2021–Creation Investments Capital Management LLC, a leading private capital investor in developing markets financial services has provided US$12 million in debt capital to three non-bank financial companies in India. Working in partnership with CredAvenue, a subsidiary of Vivriti Capital, Creation's investment aims to help people and businesses in India with little access to financial services.
These investments are from the first tranche ofaUS$100 million India-focused debt fund launched by Creation earlier this year. The fund is focusing exclusively on providing debt financing to non-bank financial companies serving the Indian population in areas such as microlending, affordable housing, vehicle loans, small- and medium-enterprise lending (SMEs), and education finance.
Creation is partnering with CredAvenue, whose technology-led debt platform locates non-bank finance companies that meet lending criteria. The platform also provides due diligence, deal execution, risk management and portfolio monitoring solutions. Vivriti Capital, CredAvenue's parent, links institutions, investors, small enterprises and individuals that lack efficient access to financial services in India.
Creation, with offices in Chicago and Bengaluru, has invested in Berar Finance, Sindhuja Microcredit and Shri Ram Finance Corporation (SRFC), providing credit microfinance and medium- and small- enterprise borrowers in low-income regions in India such as Vidarbha (Maharashtra), Odisha, Jharkhand, Bihar, Chhattisgarh, Uttar Pradesh. For all three companies, Creation's investment is their first foreign portfolio investment (FPI) debt financing.
"Our work focuses on financial inclusion for those at the bottom of the economic pyramid," said Remika Agarwal, head of Creation Investments' India office. "Working with CredAvenue, we can further leverageVivriti's scale, speed and efficiency to ramp up our investment program."
"Creation has made a significant contribution in boosting investor confidence in India's financial sector, and it is gratifying to play a critical role in supporting financial inclusion goals," said Bandaru Ramadasu, vice president of products and structured finance for CredAvenue.
Creation Investments expects to deploy the next tranche of funds in the second quarter of 2021 and complete its commitments by March 2022.
Creation invested in Vivriti Capital in 2018 from its private equity funds.
About CredAvenue
CredAvenue is an online debt platform owned and operated by CredAvenue Private Limited (CAPL) (a subsidiary of Vivriti Capital). Incorporated in 2017, the platform has facilitated over INR 55,000 crores of debt and has a network of over 150+ Lenders and 800+ FI, corporate borrowers. It has specialised sub platforms for pool transactions, loans, bonds, fulfilment, analytics and risk management solutions.
About Creation Investments
Creation Investments Capital Management, LLC, based in Chicago, is an alternative asset manager and leading private capital investor in developing markets financial services. Worldwide, Creation's investments directly help more than 28 million small businesses. As of Dec. 31, 2020, the firm managed more than US$725 million in private funds and other vehicles on behalf of individuals, family offices and institutional investors. Leveraging its deep industry experience, Creation partners with management teams to inject growth equity and facilitate buyout transactions in firms specializing in microfinance, small- and medium-enterprise credit, leasing, factoring, insurance, savings, payments, and mobile money.
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