Creation Investments invest US$12 Million debt capital in Three Indian Firms

Creation Investments Capital Management LLC, a leading private capital investor in developing markets financial services, has provided US$12 million in debt capital to three non-bank financial companies in India. Working in partnership with CredAvenue, a subsidiary of Vivriti Capital, Creation’s investment aims to help people and businesses in India with little access to financial services.

These investments are from the first tranche of a US$100 million India-focused debt fund launched by Creation earlier this year. The fund is focusing exclusively on providing debt financing to non-bank financial companies serving the Indian population in areas such as microlending, affordable housing, vehicle loans, small- and medium-enterprise lending (SMEs), and education finance.

Creation is partnering with CredAvenue, whose technology-led debt platform locates non-bank finance companies that meet lending criteria. The platform also provides due diligence, deal execution, risk management and portfolio monitoring solutions. Vivriti Capital, CredAvenue’s parent, links institutions, investors, small enterprises and individuals that lack efficient access to financial services in India.

Creation, with offices in Chicago and Bengaluru, has invested in Berar Finance, Sindhuja Microcredit and Shri Ram Finance Corporation (SRFC), providing credit microfinance and medium- and small- enterprise borrowers in low-income regions in India such as Vidarbha (Maharashtra), Odisha, Jharkhand, Bihar, Chhattisgarh, Uttar Pradesh. For all three companies, Creation’s investment is their first foreign portfolio investment (FPI) debt financing.

“Our work focuses on financial inclusion for those at the bottom of the economic pyramid,” said Remika Agarwal, head of Creation Investments’ India office. “Working with CredAvenue, we can further leverage Vivriti’s scale, speed and efficiency to ramp up our investment program.”

“Creation has made a significant contribution in boosting investor confidence in India’s financial sector, and it is gratifying to play a critical role in supporting financial inclusion goals,” said Bandaru Ramadasu, vice president of products and structured finance for CredAvenue.

Creation Investments expects to deploy the next tranche of funds in the second quarter of 2021 and complete its commitments by March 2022.

Creation invested in Vivriti Capital in 2018 from its private equity funds