Mumbai based venture debt financing company IntelleGrow has raised little under $2 million form Michale & Susan Dell Foundation to finance small and medium social enterprises. The non banking finance company as so far disbursed 20 loans totaling about $3 mn to small and medium enterprises, according to the company.
IntelleGrow is promoted by Intellecap, a business solutions provider that helps sustainable enterprises.
A report last year by IFC and Intellecap showed that despite the key economic role small and medium enterprises play, contributing to nearly 22 % of the Gross Domestic Produce, over 37 % of the overall debt demand by SME’s cant be serviced by existing financial institutions.
The company said:
Most formal lenders typically engage in traditional collateral-based lending to enterprises operating in established industries and require at least three years of profitable track record. IntelleGrow provides viability-based debt financing to early-stage enterprises with a turnover of less than $10 mn and at least 12 months of track record. It provides customised financing solutions using flexible repayment schedules linked to cash flows.
Sanjib Jha, CEO of IntelleGrow said
Michael & Susan Dell Foundation’s investment would allow us to take the spirit of innovation that we inherited from our parent entity Intellecap and nurtured by the strong support of Shell Foundation to build an Rs 250 cr (~$ 50 mn) portfolio by 2015.