About Vivriti Capital Limited

Core Business

Vivriti Capital Limited (VCL) is a pioneering mid-market lender in India. The company focuses on providing debt capital to mid-market enterprises, an area traditionally underserved by conventional financial institutions. VCL aims to level the playing field for these enterprises, enabling them to access the capital necessary for growth and development.

Business Model: Operations, Products, and Services

Vivriti Capital operates as a fintech NBFC, utilizing a transformative business model that integrates technology and financial services. The company's product suite includes:

1. Term Loans: These loans provide upfront cash, repayable over time with interest, used for expansion, marketing, and capital expenditures.

2. Working Capital Loans: These loans help businesses maintain liquidity for day-to-day operations.

3. Non-Convertible Debentures (NCDs): Fixed-income instruments that offer stable returns.

4. Supply Chain Finance: Financing for suppliers and dealers, enhancing business efficiency.

5. Co-Lending and Securitization: Partnerships with other financial institutions to extend lending capabilities.

6. Specialized Financial Products: Including buyer finance, asset leasing, and other tailored business finance solutions.

Market Analysis: Fintech and NBFC Industry

Fintech Industry

The global fintech market was valued at approximately USD 294.74 billion in 2023 and is projected to reach USD 340.10 billion in 2024, growing at a CAGR of 16.5%. The market is expected to hit USD 1,152.06 billion by 2032, driven by the rise of digital payments, increased investment, and the adoption of innovative technologies like AI and blockchain.

NBFC Industry in India

The NBFC sector in India has shown significant growth, driven by a rising middle class, enhanced financial inclusion, and supportive policy measures. The sector recorded a 38% year-on-year growth in absolute profit in the first half of FY24 compared to FY23. Key growth segments include housing finance, microfinance, and consumer finance, with NBFCs increasingly leveraging technology for operational efficiency.

Subsidiary of Vivriti Capital Limited

Vivriti Asset Management

● Vivriti Asset Management Private Limited (VAM) is a key subsidiary of Vivriti Capital Limited.

● VAM functions as an asset manager for fixed-income Alternative Investment Fund (AIF) schemes registered with the Securities and Exchange Board of India (SEBI).The company offers unique investment opportunities in the private credit market and pioneers a new category called Performing Credit in the Category 2 AIF space.

● Vivriti Asset Management manages a significant portion of Vivriti Capital’s total assets under management. VAM has been instrumental in driving Vivriti Capital’s growth by leveraging its expertise in the fixed-income segment and offering attractive investment opportunities to its clientele.

Customers and Market Segment

Vivriti Capital primarily serves mid-market enterprises across various sectors, including manufacturing, services, and trade. The company's investors include high-net-worth individuals (HNIs), ultra-high-net-worth individuals (UHNIs), banks, financial institutions, offshore investors, family offices, and foundations.

The sector-wise distribution of their AUM includes:

1. Financial Sector Entities: A significant portion of their portfolio, approximately 59%, is allocated to financial sector entities. This includes investments in various financial institutions and mid-market enterprises.

2. Non-Financial Sector Enterprises: The remaining 41% of their AUM is diversified into non-financial sector enterprises, which encompasses sectors such as electric vehicles (EVs), supply chain finance, and other mid-market industries.

Growth and Market leadership

Vivriti manages a diverse portfolio of INR 8800+ Cr and has increased its client base to 400+ enterprises while onboarding 100+ new enterprises across over 50+ sectors. Over the past six years, the company has developed significant expertise and a robust business model, leveraging specialised technology, curated products, and superior portfolio management. With a client retention rate exceeding 90%, Vivriti has navigated challenging macroeconomic conditions in India, raising over Rs. 4000 Cr from 675+ investors.