Vivriti Capital raises $30 million in funding from TVS Capital

Vivriti Capital, a fast-growing mid-market lender on Wednesday said it has raised an additional $30 million from TVS Shriram Growth Fund 3, a home-grown private equity fund managed by TVS Capital. The Chennai-based company had already raised $55 million in the first close of its Series C funding in March 2022, from existing investors Lightrock and Creation Investments.

The funds will be allocated between Vivriti Capital and its subsidiary Vivriti Asset Management, which manages closed-ended debt funds investing in mid-sized corporates.

“The Indian performing credit space has displayed great potential, especially in the months following the pandemic. The latest round of funding will enable us to deepen our engagement with our clients as well as invest in technology and product development,” Vineet Sukumar, founder and CEO, Vivriti Capital and Vivriti Asset Management said in a statement.

The Chennai-based company said the purpose of the equity raise is to focus on the mid-market debt space bringing global and domestic investors to mid-sized enterprises at scale. The funds will be utilised for business expansion, as well as technology for customer acquisition, product delivery and portfolio management.

"Corporate credit in India is underpenetrated, with borrowings at <60% of GDP, well short of global benchmarks. The Indian debt markets are poised to deepen, driven by growth of credit to the financially under-served segments, where Vivriti has thrived in terms of growing its loan book while maintaining the best-in-class asset quality," Gopal Srinivasan, chairman and managing director, TVS Capital, said.

Founded in 2017, the Vivriti Group said it is on track to become the largest technology-enabled mid-market debt lender in India with assets of more than $5 billion over the next four to five years. It added that it plans to achieve this target using a combination of a high quality and diversified balance sheet at Vivriti Capital and a performing credit ‘managed’ book through Vivriti Asset Management. Both entities have $700 million in AUM, and commitments and debt lines from over 300 debt investors, both global and domestic.

Avendus Capital was the exclusive financial advisor to Vivriti Capital on this transaction.