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Creation Investments invest $12M debt capital in 3 Indian firms

Creation Investments Capital Management LLC is a major private capital investor in growing markets financial services. The company has recently provided $12 million in debt capital to three Indian NBFCs— Sindhuja Microcredit, Berar Finance, and Shri Ram Finance Corporation (SRFC). 

These investments are from the first portion of a $100 million India-focused debt fund launched by Creation earlier this year. 

The press release states that the fund is focusing solely on offering debt financing to NBFCs catering to the Indian population in fields such as affordable housing, microlending, small- and medium-enterprise lending (SMEs), vehicle loans, and education finance. 

Creation is also collaborating with CredAvenue whose technology-led debt platform positions NBFCs to match the lending standards. The platform also offers deal execution, due diligence, risk management, and portfolio monitoring solutions.

Commenting on the new investment, Remika Agarwal, Head of Creation Investments’ India office, said, “Our work focuses on financial inclusion for those at the bottom of the economic pyramid. Working with CredAvenue, we can further leverage Vivriti’s scale, speed, and efficiency to ramp up our investment programme.”

CredAvenue’s parent company, Vivriti Capital, connects institutions, investors, small enterprises, and individuals who do not have proper access to financial services in the country. 

In 2018, Creation invested in Vivriti Capital from its private equity funds.

Speaking about the new development, Bandaru Ramadasu, Vice-President of Products and Structured Finance for CredAvenue said, “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.” 

Creation has offices in Chicago and Bengaluru and is an alternative asset manager and major private capital investor in developing markets financial services. With extensive industry experience, Creation collaborates with management teams to add growth equity and aid buyout transactions in organizations specializing in small- and medium-enterprise credit, factoring, microfinance, leasing, insurance, payments, savings, and mobile money. 

Creation Investments expects to use the next portion of funds in Q2 of 2021 and achieve its commitments by March 2022, the company stated.

The Indian Startup Ecosystem is witnessing its best year so far. With the latest investment from Creation Investments, Sindhuja Microcredit, Berar Finance, and Shri Ram Finance Corporation are one step closer to achieving financial inclusivity.

Shishir Gupta, Founder and CEO, StartupLanes

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