Venture debt is now available to Indian startups courtesy the just launched SVB India Finance. Led by Ajay Hattangdi, who started dabbling in venture debt during an earlier 12-year stint with Citigroup India, the outfit is based in Mumbai and will provide debt capital to venture-backed early and mid-stage companies — see press release. In terms of the company’s corporate structure, Hattangdi operates as the firm’s senior lender based in Mumbai while Ash Lilani, president, India and China, of SVB Financial Group, who brings 17 years of venture lending experience primarily in the US market, will oversee the operation as its CEO, said a company spokesperson.
The launch of the Reserve Bank of India-licensed non-banking financial company (NBFC) is an important milestone for the Santa Clara, California-headquartered SVB Financial Group (NASDAQ: SIVB) which started building a presence here in early 2004. As a complement to venture capital, which is just beginning to take off in India, the launch of SVB’s venture debt services opens up a critical flanking source of capital for early-stage companies both in technology and non-technology sectors.
How does venture lending or venture debt help young companies?