TVS Capital adds another BFSI firm to portfolio with bet on Vivriti

 TVS Capital adds another BFSI firm to portfolio with bet on Vivriti

TVS Capital has invested in non-bank lender Vivriti Capital, as the Indian mid-market private equity firm remains bullish on the banking and financial services sector.

The PE firm, which has made around two-thirds of its bets from its second and third funds in the BFSI sector, has invested $30 million (Rs 233 crore) in Vivriti Capital.

It invested in Vivriti through its third fund, TVS Shriram Growth Fund 3, as part of the lender’s Series C round.

Chennai-based Vivriti said it had already raised $55 million in the first close of its Series C funding in March 2022, from existing investors Lightrock and Creation Investments.

Vivriti will allocate the funds between itself and its subsidiary Vivriti Asset Management, which manages closed-ended debt funds investing in mid-sized companies. The two group companies will use the funds for business expansion, as well as technology for customer acquisition, product delivery and portfolio management.

“The Indian performing credit space has displayed great potential, especially in the months following the pandemic. The latest round of funding will enable us to deepen our engagement with our clients as well as invest in technology and product development,” said Vineet Sukumar, founder and CEO, Vivriti Capital and Vivriti Asset Management.

Gopal Srinivasan, chairman and managing director at TVS Capital, said the Indian debt markets are poised to deepen, driven by growth of credit to the financially under-served segments.

The investment in Vivriti increases TVS Capital’s exposure to the BFSI sector. The PE firm’s second fund had invested in ten companies, of which five were in this sector. These were Suryoday Small Finance Bank, Karur Vysya Bank, City Union Bank, RBL Bank and the National Stock Exchange.

The third fund has so far invested in eight companies, including Vivriti. Six of them are in the financial services sector. These are Suryoday, Five Star Business Finance, Digit Insurance, DCB Bank and debt marketplace CredAvenue.

TVS Capital sold a bulk of its stake in Suryoday Small Finance Bank last year with low single-digit returns.

Vivriti Group was founded in 2017. Vivriti Capital and Vivriti Asset Management have $700 million in AUM, and aim to increase it to $5 billion over the next four to five years.

Avendus Capital was the exclusive financial advisor to Vivriti Capital on this transaction.

Sumit Upadhyaya

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