Caspian debt ready for the next phase of growth
Caspian Debt, a strategic digital lender in some areas of sustainable projects / businesses, is poised to move into its next phase of growth, expanding its business portfolio by lending and providing equity capital.
The Hyderabad-based impact investment fund, established 15 years ago, Caspian finances businesses that are socially responsible and deliver both social and financial value. It works in close collaboration with more than 150 start-ups who support them on their journey. The fund has assisted these start-ups / businesses through 327 loans for a total exposure of over 1,600 crore, covering both debt and equity.
Viswanatha Prasad, Founder and CEO of Caspian Debt, said: “In the past 15 years since our inception, we have funded more than 150 start-ups and companies in the areas of financial inclusion, renewable energy, agro-technology and other areas that meet both their debt and equity needs. We are now looking at the next phase of growth and expansion. The companies in our portfolio have impacted 13 SDGs (Sustainable Development Goals).
“One of the challenges that start-ups face is that most of them are founded by first-generation entrepreneurs who don’t have a lot of financial background. This makes the task of raising funds even more difficult because they have no collateral to go into debt. In order to fill this gap, we focus on these start-ups and offer them debt. This model has worked well for us and is beneficial for all, ”he said.
“We have so far raised around $ 250 million over multiple rounds, both debt and equity. Funding came from two Dutch banks: Tridos Bank and Rabo Bank, FMO (International Development Bank), DFC (US International Development Finance Corporation), GreyGhost Ventures and SIDBI Venture. We are at an advanced stage of funding approximately eight to ten other companies in the current fiscal year. Typically our funding is in the range of 5 to 15 crore, ”he said.
“Microenterprises face the problem of debt mobilization and Caspian Debt bridges this gap to help these companies become professionally run financial institutions, solving critical issues in high impact sectors like food. and agriculture, clean energy, health, education and financial inclusion. These institutions are generally funded by venture capital, led by first generation entrepreneurs with new era business models, ”he said. Activity area.
“About 58% of Caspian Debt clients have taken out four loans and their greatest success is the way most companies continue to ask them for financial and advisory support. During Covid-19, the companies in the portfolio experienced strong growth, ”he said.
Caspian Debt offers quick loans, revolving loans, term loans, and other working capital financing instruments, such as purchase order financing.