Singapore’s Temasek Holdings has acquired debt financing company SVB India Finance for approximately Rs 300 crore. Post the acquisition, SVB India Finance has been renamed as InnoVen Capital India. The acquisition is Temasek’s first step towards building a pan-Asian venture lending platform.
“We believe that the platform will be attractive to the start-up community in India – entrepreneurs, venture capitalists and angel investors – not just in the context of promoting the growth of innovative companies in India but also for their expansion as they seek to venture beyond India,” Temasek’s Managing Director (Enterprise Development Group) Ong Beng Teck said.
SVB India provides debt financing to VC-backed early stage and mid-growth companies. Till date, SVB India Finance has provided over 75 loans to more than 50 companies in India, totalling $110 million of venture debt in India. It has extended funding for various firms including Snapdeal, Myntra, Freecharge, and Firstcry.
Madhabi Puri Buch, former CEO of ICICI Securities has been appointed as Chairperson of InnoVen Capital India. SVB India plans to further develop the venture debt market in India and South Asia. Ajay Hattangdi will continue to lead the company as CEO & Managing Director for India and South East Asia, while Vinod Murali, Managing Director, will continue to be responsible for leading the India deal team. The team would leverage Temasek’s expertise, resources and network to further strengthen its foothold in India and international markets.
As on 31 March 2014, India was around 4% of Temasek’s net portfolio value based on underlying assets. Direct exposure amounted to approximately 2%.