Yatra.com — one of the leading online travel portal operator in India, has received commitment from InnoVen Capital to extend around ₹100 crore as a debt funding in the travel company.
If it does so, this will mark the largest funding from InnoVen Capital so far in India. Till March this year, the firm has already invested over ₹1,450 crore in various companies.
This investment is a significant divergence for InnoVen from its usual early-stage bets. The venture debt firm typically invests in small ticket sizes of around ₹19 crore to ₹32 crore.
InnoVen Capital, a Temasek-backed specialty finance firm, which is based in Singapore and Mumbai, is also mulling to make equity-based investments in India. Chin Chao, interim chief executive at InnoVen Capital India, said,
I think we have always considered whether it (equity investments) makes sense as a part of our business. It’s an ongoing discussion. But there are no concrete plans… At some point, we probably will be doing some sort of equity investments in some of the companies that we support. But nothing’s on the plate at the moment.
This also marks the the second round of financing from InnoVen Capital to Yatra. The venture debt provider had previously provided around ₹25 crore ($4 million) to Yatra in 2013.
The company says that it will use the funds for its growth and diversification, as well as to add to its list of services.
InnoVen Capital typically lends money at an interest rate of 15 percent, with loan tenures of 2-3 years. The firm does not accept personal guarantees or the assets of the founders.
Chao, interim CEO of InnoVen says that the transaction represents an evolution of the venture debt ecosystem in the country as well as the evolution of InnoVen Capital.