Supply chain solutions provider LEAP India has received a structured debt of Rs 25 crore from credit solutions firm Avendus Finance—the non-banking finance company (NBFC) business of KKR-backed Avendus Capital. LEAP India will use the money for its capital expenditure needs and its future growth plans.
In January last year, the firm had raised Rs 88.34 crore ($13 million) in its Series B round of funding from IndiaNivesh Growth Fund, Sixth Sense and TCI Ventures. Other investor included venture capital firm Mayfield Fund and Rishabh Mariwala. The company had then said that these funds would be used to hire more professionals and develop its asset-pooling service.
LEAP India was founded in 2013 by Sunu Mathews and it currently offers services to companies in FMCG, consumer durables, beverages and auto sectors. The company covers strategic management, lumber sourcing, distribution & channel marketing, sales and its business if of returnable packaging and pooling of equipment.
Last month, Avendus Finance revealed its plan to start financing small and medium enterprises (SME). It provides customized financing solutions for mid-market businesses such as growth financing, sponsor financing, recapitalization, asset financing, bridge funding, acquisition financing, pre-IPO financing and project funding.
Sandeep Thapliyal, the managing director and chief executive officer at Avendus Finance, told Mint that supply-chain business is understood very well in the larger/top end corporate segment and many banks/NBFCs have built businesses in that segment of the market, but no one has managed to segment the mid-market supply chain the way Avendus is looking to do.
In January last year, Avendus Capital had announced its entry into the structured finance space with a dedicated Rs 500 crore fund. A major part of the fund is raised from domestic investors and it targets investments in growth companies, mid-market companies, solid businesses where there is an opportunity to provide structured debt/private financing.
Avendus Capital which was started in 1999, operates through four units: Avendus Capital Pvt. Ltd (M&As, structured finance, equity capital markets, financial sponsors group, private equity syndication), Avendus Wealth Management Pvt. Ltd, Avendus Capital (UK) Pvt. Ltd and Avendus Capital Inc. (US).