MICROCAPITAL BRIEF: IntelleGrow Raises $20m in Debt, Equity to Fund Micro-, Small, Medium-sized Enterprises in India

IntelleGrow Private Limited, an India-based nonbanking financial company specializing in venture debt that was founded by India’s Intellecap Capital Advisory Services, recently announced that it has raised INR 134 billion (approximately USD 20 million) in equity and debt. The companies that invested in the equity were Developing World Markets (DWM), a US-based asset manager and investment bank; Triodos Investment Management BV, a subsidiary of the Netherlands-based Triodos Bank; and Omidyar Network, a philanthropic investment firm based in the US. The Calvert Foundation, a US-based nonprofit organization specializing in impact investment, and the Overseas Private Investment Corporation, a US government agency, provided the debt funds.

IntelleGrow lends to micro-, small and medium-sized companies in the start-up or early stages that have operated for at least a year and have revenues less than INR 500 million (USD 8.1 million).

Vineet Rai, the chairman of IntelleGrow, stated the “Indian early stage ecosystem has been starved of quality debt providers who could offer cash-flow based lending. IntelleGrow pioneered this concept with an impact thesis and the current fund raise would allow us to provide substantial funds to [the] start up ecosystem in India.”

Since its inception in 2012 through 2016, IntelleGrow has disbursed loans to approximately 100 companies totaling INR 350 billion (approximately USD 52 million), targeting small and medium sized enterprises (SMEs) operating in the energy, agriculture supply chain, sanitation, healthcare, education and financial inclusion sectors. No further financial information on the firm has been made available.

By Imke Herholdt, Research Associate

About IntelleGrow
Intellegrow is a nonbanking financial company (NBFC) based in the city of Mumbai, India. It was founded in 2012 by Indian consultancy firm Intellecap Capital Advisory Services with financial support from Shell Foundation, a UK-based charity promoting social investment that was founded by energy firm Royal Dutch Shell. IntelleGrow offers debt financing, technical assistance and training to early-stage and small and medium-sized enterprises (SMEs) that have been operational for at least a year and have revenues less than INR 500 million (USD 8.1 million). Since its inception in 2012 through 2016, IntelleGrow has disbursed loans to approximately 100 companies totalling INR 350 billion (approximately USD 52 million), targeting small and medium-sized enterprises (SMEs) operating in the energy, agriculture supply chain, sanitation, healthcare, education and financial inclusion sectors. No further financial information on the firm is available.

About Developing World Markets (DWM)
Developing World Markets (DWM) is a US-based asset manager and investment bank dedicated to making socially positive investments to promote sustainable economic development. It provides both debt and equity investments to microfinance institutions (MFIs) and other socially motivated organizations. As of December 2014, DWM manages investments totalling approximately USD 490 million in 140 institutions in 40 countries.

About Triodos Investment Management BV
Triodos Investment Management BV, a wholly owned subsidiary of Triodos Bank of the Netherlands, manages funds in a range of sectors including the financial sector, renewable energy finance and venture capital in developing countries. As of December 2015, Triodos Investment Management managed 18 sustainable investment funds totalling EUR 3.1 billion (approximately USD 3.4 billion) in value.

About Omidyar Network
Founded in the US in 2004, Omidyar Network is a firm that provides investments and grants to “socially responsible” organizations that are active in the areas of microfinance, entrepreneurship, property rights, social media and government transparency. Omidyar invests in organizations that it deems to “have potential for large-scale impact, have proven leadership, and exemplify innovation.” Since its inception in 2004 until June 2016, Omidyar Network has committed investments totalling USD 969 million, of which USD 461 million has been for-profit investments and USD 508 million has been nonprofit grants.

About the Calvert Foundation
The Calvert Foundation, a US-based nonprofit Community Development Financial Institution (CDFI) that provides loans to organizations that provide affordable housing, microfinance, small business loans and community facilities was founded in 1995. Its Calvert Social Investment Foundation was launched in 1995 with the support of the Ford, MacArthur and Mott Foundations. Investment in this fund comes in the form of donations and notes sold to both individuals and organizations. As of December 2015, the Calvert Social Investment Foundation reported total assets of USD 316 million.

About Overseas Private Investment Corporation (OPIC)
The Overseas Private Investment Corporation (OPIC) is an agency of the US government that was established in 1971 as a development finance institution. OPIC works with private-sector firms to identify opportunities in emerging markets and create an enabling environment for private enterprise in developing countries. OPIC provides financing through direct loans as well as guarantees, political risk insurance and investment funds. As of September 2015, OPIC reported total assets of USD 8.2 billion.

Sources and Additional Resources
[1] Information provided directly by Developing World Markets (DWM)
[2] MicroCapital Universe Profile: IntelleGrow
[3] MicroCapital Universe Profile: Developing World Markets (DWM)
[4] MicroCapital Universe Profile: Omidyar Network
[5] MicroCapital Universe Profile: Calvert Foundation
[6] MicroCapital Universe Profile: Overseas Private Investment Corporation (OPIC)
[7] IntelleGrow
[8] MicroCapital Universe Profile: Triodos Investment Management BV

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