Vivriti Capital: Transforming Debt Financing For Growing Businesses

Introduction To Vivriti Capital Limited, Debt Financing NBFC

Vivriti Capital Limited (VCL) is a systemically important non-banking financial company (NBFC-ND-SI) that specialises in providing diverse debt financing solutions to mid-market enterprises and financial institutions. Established in June 2017 by Vineet Sukumar and Gaurav Kumar, the company has positioned itself as a key player in India's financial ecosystem. VCL offers a wide range of debt products, including term loans, working capital finance, trade finance, and non-convertible debentures (NCDs), catering to businesses that traditionally face challenges in securing capital. Through its co-lending partnerships with other NBFCs, the company has also expanded its presence in the retail financing segment, further strengthening its reach and impact.

VCL has shown consistent financial growth, with total managed assets of INR 9,521.5 crore in FY2024, compared to INR 6,821.1 crore in FY2023. It reported a net profit of INR 191.3 crore in FY2024, reflecting its strong operational performance. The company also has investments in two key subsidiaries: Vivriti Asset Management (VAM), which manages alternative investment funds (AIFs) worth INR 2,752.2 crore, and CredAvenue (CAPL), a syndication platform that facilitates structured credit solutions. With a mission to democratise access to debt capital for mid-market enterprises, VCL is redefining financial inclusion in India by offering tailored credit solutions that enable businesses to scale, innovate, and thrive in a competitive market.

Board Of Directors Of Vivriti Capital

As of December 30, 2024, the Board of Directors of Vivriti Capital Limited comprises the following members:

• Mr. Santanu Paul – Independent Director (appointed on February 9, 2023)
• Mr. John Tyler Day – Nominee Director (appointed on January 18, 2019)
• Mr. Lazar Zdravkovic – Nominee Director (appointed on March 31, 2023)
• Mr. Kartik Srivatsa – Nominee Director (appointed on May 30, 2020)
• Mr. Gopal Srinivasan – Nominee Director (appointed on May 27, 2022)
• Mr. Gaurav Kumar – Non-executive Director (appointed on June 22, 2017)
• Mr. Vineet Sukumar – Managing Director (appointed on August 30, 2017)

Please note that board compositions can change over time. For the most current information, it's advisable to consult official company filings or the Ministry of Corporate Affairs.

Source: Vivriti Capital¹

Products Offered By Vivriti Capital

Vivriti Capital Limited offers a diverse range of financial products tailored to meet the unique needs of mid-market enterprises. These products are designed to provide flexible financing solutions, enabling businesses to achieve their growth objectives efficiently.

1. Term Loan

Term loans are structured financial solutions where a borrower receives a lump sum of funds upfront and repays it over a predetermined period through scheduled installments. These loans are ideal for businesses seeking capital for expansion, marketing initiatives, technological upgrades, or capital expenditures. By opting for term loans, companies can secure necessary funds without diluting ownership equity.

2. Working Capital Demand Loan

Working capital demand loans are designed to support the day-to-day operational expenses of a business. These loans provide immediate liquidity, ensuring that companies can manage their short-term financial obligations seamlessly. This facility is crucial for maintaining smooth business operations, especially during periods of fluctuating cash flows.

3. Supply Chain Finance

Supply chain finance solutions offer short-term credit to businesses, enhancing liquidity within the supply chain. This product benefits both suppliers and buyers by optimising cash flow, reducing payment cycles, and strengthening business relationships. By facilitating prompt payments, supply chain finance ensures the stability and efficiency of the entire supply network.

4. Co-Lending

The co-lending model involves collaboration between Vivriti Capital and other financial institutions to jointly disburse loans to borrowers, particularly in the priority sector. This partnership approach combines the strengths of both lenders, offering borrowers competitive interest rates and diversified credit options. Co-lending expands the reach of financial services, promoting inclusive growth across various sectors.

5. Securitisation

Securitisation is a financial process that transforms illiquid assets into tradable securities. By pooling various financial assets and selling them as consolidated securities to investors, Vivriti Capital enables businesses to unlock capital tied up in assets. This mechanism provides companies with immediate funds, enhancing liquidity and facilitating further investment opportunities.

6. Non-Convertible Debentures (NCDs)

Non-Convertible Debentures are long-term financial instruments used by companies to raise funds through public issues. Unlike convertible debentures, NCDs cannot be converted into equity shares and typically offer higher interest rates. They are an attractive investment option for investors seeking fixed income, while providing businesses with the necessary capital to pursue growth and expansion plans.

Innovation Technology At Vivriti Capital

Vivriti Capital leverages advanced technology to enhance its financial services, focusing on specialised digital platforms and data-driven solutions. The company has developed a robust business model that integrates specialised technology, curated products, multi-level underwriting, superior portfolio management, and effective distribution strategies. This comprehensive approach enables Vivriti Capital to offer a diverse range of financial products, including term loans, working capital loans, supply chain finance, co-lending, securitisation, and non-convertible debentures, tailored to meet the unique needs of mid-market enterprises.

By embracing a full-stack digital technology framework, Vivriti Capital ensures rapid turnaround times and seamless processes for its clients. The company's commitment to innovation is evident in its continuous efforts to modernise, adapt, and optimise its services through digitalisation. This includes the development of cloud-native, agile, and flexible technology platforms that support scalable, intelligent, and comprehensive data management. Additionally, Vivriti Capital places a strong emphasis on information security, maintaining compliant, secure, and robust systems to protect client data and ensure the integrity of its financial operations.

Key Strengths Of Vivriti Capital

1. Strong Business Growth

Vivriti Capital has been growing rapidly, with its Assets Under Management (AUM) increasing by 42% year-over-year, reaching INR 8,285 crore as of September 2024. The company’s retail loan portfolio has also expanded significantly, rising from 38% of the total portfolio in FY23 to 49% in FY24. This growth has been driven by its co-lending partnerships and supply chain financing, making it a key player in supporting mid-market enterprises.

2. High-Quality Loan Portfolio

Vivriti Capital has maintained low loan defaults, with its Gross Non-Performing Assets (GNPA) at just 1.8% as of September 2024. While retail loans have a slightly higher default rate at 1.4%, the small and diversified nature of these loans ensures that they do not significantly impact the company's overall asset quality.

3. Strong Financial Stability And Liquidity

With a net worth of INR 2,021 crore as of September 2024, Vivriti Capital has a solid financial foundation. The company has received over INR 2,000 crore in equity funding from top investors, ensuring its ability to continue expanding. Additionally, Vivriti maintains a positive balance between assets and liabilities across all time periods and holds INR 700+ crore in unencumbered cash, providing ample liquidity for smooth operations.

4. Experienced Leadership And Strong Governance

Vivriti Capital is led by a team of highly experienced professionals with expertise in structured finance, credit risk, and business growth. The company's Board of Directors includes independent and nominee directors from top investment firms like TVS Capital and Lightrock, ensuring strong corporate governance and strategic decision-making.

5. Smart Borrowing And Cost Management

The company has built strong relationships with multiple lenders, including SBI, Tata Capital, IDFC, and AU Small Finance Bank, ensuring access to affordable funding. Vivriti is actively working to reduce its borrowing costs, though rising interest rates have affected its cost of funds. By continuously optimizing its borrowing strategy, the company ensures sustainable growth.

6. Strong Risk Management And Credit Assessment

Vivriti Capital uses advanced data analytics and proprietary risk assessment tools to evaluate loan applications. The company conducts detailed checks through both digital and on-ground verification, ensuring responsible lending. Its portfolio monitoring system helps identify risks early, allowing for quick action to prevent defaults and keep losses minimal.

Financial Snapshot Of Vivriti Capital

Source: ICRA Limited²

To arrange the capital, Vivriti also offers corporate bonds. These opportunities from the company are secured and are rated by credit rating agencies. On Grip Invest, investors invested in CARE ‘A+’ rated bonds of the company that offered fixed returns of up to 10.8%. To invest in similar, rated, regulated and secured fixed-income opportunities, sign-up for Grip Invest today and start earning fixed returns:

References:

1. Vivriti Capital, accessed from: https://www.vivriticapital.com/board-of-directors.html
2. ICRA Limited, accessed from: https://www.icra.in/Rating/GetRationalReportFilePdf?id=127968

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