Yatra raises Rs 100 crore in venture debt from InnoVen
BENGALURU: Yatra, India's second-largest online travel platform (after MakeMyTrip), has closed a Rs 100-crore (around $15.4 million) venture debt (loan usually taken by startups instead of giving equity) from Temasek's venture debt arm InnoVen Capital. This is said to be the biggest venture debt deal for any Indian business. In 2013, the company had got $4 million as venture debt from InnoVen.
The funds will largely be used for its growth needs. The Nasdaq-listed company recently ramped up its corporate travel services platform by acquiring Air Travel Bureau.
"After having raised $92 million through our Nasdaq listing in December 2016, this debt funding provides us additional capital for our growth needs. InnoVen's credit exposure to Yatra is another strong reaffirmation of our business fundamentals," said Alok Vaish, Yatra's group CFO.
InnoVen Capital says the space for venture debt is increasing among larger companies and the fund is in talks with a few more companies for similar deals. Chin Chao, who recently took over as the CEO of InnoVen's India operations after its two heads Ajay Hattangadi and Vinod Murali resigned, said that India was one of the most mature markets for the company.
"Venture debt is not just for early-stage companies any more. In 2016, we saw a lot of pullbacks in terms of funding. This year, we have seen a slow uptick in funding. We have a lot of deals with Indian companies in the pipeline, since a lot are planning to expand overseas," said Chao, who is based in Singapore.
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