Financing the SME Lending Sector

Nexensus analyzed investments across 20 Fin-Tech companies in the Business/SME lending space and found that a whopping INR 2100 crores have been pumped into the segment in the last 12 months. Notably, of the 20 leading companies in the space, only twelve companies have received funding. Five-Star Business Finance Limited is leading having raised ~INR 819 crores in the last twelve months followed by Capfloat Financial Services that raised ~INR 627.8 crores and Lendingkart Finance that raised 379.59 crores in the same period.

Blue Jay most Valued Company

Interestingly, Blue Jay Finlease Limited’s equity shares were valued the most at INR 9431.63 per share followed by Fairassets Technologies at INR 7395.15 per share and Rubique Technologies at INR 4786 per share.

Triodos Takes Lead in SME Lending

It is noteworthy that the maximum amount of funding in this segment has come from a Netherland based ‘Inclusive Finance’ focus investment management group viz. Triodos  

36 crore investment by individual

In a significant development, Mr. Dinesh J Hinduja father of Gaurav Hinduja the founder and promoter of Capfloat Financial Services emerged as the largest individual investor in the segment. Since September 2018 he made a personal investment of ~INR 36 crores.

Major Transactions in this Segment

Nexensus compiled a list of the top 30 private placements deals in this sector in the last 12 months:

Name of CompanyName of InvestorDeal DateAmount Invested (INR Millions)Instrument
Five-Star Business FinanceTPG Asia VII SF Pte. Ltd.03 August 20183,809.99Equity
Capfloat Financial ServicesTriodos Microfinance Fund16 March 20182,400.00Senior, Secured, Rated, Redeemable, Nonconvertible
Capfloat Financial ServicesTriodos Fair Share Fund16 March 20182,400.00Senior, Secured, Rated, Redeemable, Nonconvertible
Lendingkart FinanceReliance Capital Trustee Co. Ltd A/c Reliance Hybrid Bond Fund01 June 20181,500.00
PartlyPaid,Rated Unlisted Secured,Redeemable NCDs
Lendingkart FinanceAditya Birla Sun Life AMC Limited21 May 2018
1,500.00
PartlyPaid,Rated Unlisted Secured,Redeemable NCDs
Five-Star Business FinanceNHPEA Chocolate Holding B.V.03 August 2018
880.00
Equity
Five-Star Business FinanceNorwest Venture Parteners X-Mauritius03 August 2018
750.00
Equity
Five-Star Business FinanceSCI Investment V03 August 2018
750.00
Equity
Five-Star Business FinanceFranklin India Credit Risk Fund28 June 2018
650.00
Secured Redeemable Non-Convertible Debentures
Five-Star Business FinanceFranklin India Corporate Bond Opportunities Fund27 April 2018650.00
Secured Redeemable Non-Convertible Debentures
Blue Jay FinleaseSaif Partners India Vi Limited28 September 2018630.90Equity
Cointribe TechnologiesSabre Parteners Trust29 May 2018450.00
Fully Paid Compulsorily Convertible Preference Shares
Five-Star Business FinanceFranklin India Corporate Bond Opportunities Fund28 May 2018260.00
Secured Redeemable Non-Convertible Debentures
Lendingkart FinanceGoenka Trading Company26 February 2019250.00
Non-Convertible Debentures
Lendingkart FinanceIFMR Finance for Freedom Fund V with IFMR Fimpact Income Builder Fund13 July 2018250.00
Non-Convertible Debentures
Five-Star Business FinanceFranklin India Short Term Income Plan28 May 2018240.00
Secured Redeemable Non-Convertible Debentures
Blue Jay FinleaseMatrix Partners India Investment II Extension LLC28 September 2018202.10
Equity
Capfloat Financial ServicesAkshay Vijay Mansukhani05 March 2019200.00
Unlisted Unsecured Redeemable Non Convertible
Lendingkart FinanceFreedom Fund IV with IFMR Fimpact Medium Term Opportunities Fund28 January 2019200.00
Non-Convertible Debentures
Capfloat Financial ServicesIndia Income Opportunities Fund21 September 2018150.00
Senior Secured Redemable Taxable Non-Convertibles
Five-Star Business FinanceFranklin India Low Duration Fund28 May 2018150.00
Secured Redeemable Non-Convertible Debentures
Cointribe TechnologiesSabre Partners Invsetment Managers29 May 2018149.79
Partly Paid Compulsorily Convertible Preference Shares
Capfloat Financial ServicesDinesh J Hinduja25 March 2019120.00
Unlisted Unsecured Redeemable Non Convertible
Capfloat Financial ServicesDinesh J Hinduja06 October 2018100.00
Unlisted, Unsecured, Redeemable, Non-Convertible
Rubique Technologies Jasper Fund II, L.p02 May 201898.37
Series B3 Compulsory Convertible Preference Shares
Opendoors Fintech Opendoors Global Fintech Private 23 March 201897.66
Equity
Lendingkart FinanceLendingkart Technologies24 September 201881.19
Equity
Fairassets TechnologiesJM Financial Products Limited16 February 201872.19
Series A3 Compulsorily Convertible Preference Shares
Opendoors Fintech Opendoors Global Fintech30 August 201870.11
Equity
Capfloat Financial ServicesDinesh J Hinduja26 September 201870.00
Unlisted, Unsecured, Redeemable, Non-Convertible

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