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Creation Investments Capital Management LLC, a leading private capital investor in developing markets financial services, has recently announced that it has provided $12 million in debt capital to three non-bank financial companies in India — Berar Finance, Sindhuja Microcredit, and Shri Ram Finance Corporation (SRFC).

These investments are from the first tranche of a $100 million India-focused debt fund launched by Creation earlier this year.

According to the press release, the fund is focusing exclusively on providing debt financing to non-banking 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 also partnering with CredAvenue whose technology-led debt platform locates non-bank finance companies to meet the lending criteria. The platform also provides due diligence, deal execution, risk management, and portfolio monitoring solutions.

Speaking about the new development, Remika Agarwal, Head of Creation Investments’ India office, said,

“Our work focuses on financial inclusion for those at the bottom of the economic pyramid. Working with CredAvenue, we can further leverage Vivriti’s scale, speed, and efficiency to ramp up our investment programme.”

Vivriti Capital, CredAvenue’s parent company, links institutions, investors, small enterprises and individuals who lack efficient access to financial services in India.

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

“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.

With offices in Chicago and Bengaluru, Creation is an alternative asset manager and leading private capital investor in developing markets financial services. Leveraging its deep industry experience, Creation partners with management teams to inject growth equity and facilitate buyout transactions in firms specialising in microfinance, small- and medium-enterprise credit, leasing, factoring, insurance, savings, payments, and mobile money. 

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