JSA advised and represented Creation Investments India III, LLC, Chicago based investment fund (Creation) in relation to a fund raise of USD 90 million by CredAvenue Private Limited (CredAvenue). CredAvenue is a subsidiary of Vivriti Capital Private Limited (Vivriti Capital). Vivriti Capital which is majority owned by Creation connects institutions, investors, small enterprises and individuals that lack efficient access to financial services in India.
Following this funding round, which was led by Sequoia Growth Investments, Lightspeed India Partners III, TVS Shriram Growth Fund III, Lightstone Global Fund and CRED, Vivriti Capital will continue to own a 58.5% majority stake in CredAvenue. CredAvenue is an online debt platform, a subsidiary of Vivriti Capital. Incorporated in 2017, the platform has facilitated over INR 55,000 crores of debt and has a network of over 150+ lenders and 800+ financial institution corporate borrowers. It has specialized sub platforms for pool transactions, loans, bonds, fulfilment, analytics, and risk management solutions.
This deal was unique since the investment was made in the subsidiary company, CredAvenue, where the holding company was majority owned by a private equity fund. The rights of the private equity fund had to be provided in the subsidiary company through the holding company which made this transaction complex.
The deal value was approximately 90 million USD
JSA team comprised Lead Partner – Lalit Kumar, Partner – Bharati Joshi, and Associate – Manan Kapoor.