IntelleGrow, a financing company for small and medium social enterprises, has raised Rs 25 crore from Omidyar Network and Rs 3 crore from the Michael & Susan Dell Foundation.

The funds will be used to help Indian small enterprises access capital for growth. A 2012 report by IFC and Intellecap, the promoter company of IntelleGrow, showed that one of the biggest challenges faced by the small and medium enterprise (SME) sector is the availability of adequate and timely finance. Despite the key economic role SMEs play, including a contribution of almost 22 per cent to the GDP of India. 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, placing debt financing out of reach for many innovative new companies.

To date, IntelleGrow has disbursed more than 60 loans, totaling more than Rs 60 crore to SMEs across India.

IntelleGrow provides viability-based debt financing to fast growing early-stage enterprises with a turnover of less than Rs 50 crore and atleast 12 months of track record.

Sanjib Jha, CEO and Director, IntelleGrowsaid, “Businesses in their early stages need debt at the right time to sustain and create value and not only just be dependent upon equity. Our offering in the form of venture debt creates value for promoters and investors and helps multiply the social impact. We know there are literally hundreds of worthy companies to meet and engage with in India. Unlocking capital for these companies means unlocking solutions to India’s development challenges."

With investment from Omidyar Network, the firm has found a new partner in this work – a partner that endorses our model and our track-record and joins other notable investors like Michael &Susan Dell Foundation, he added.

Dimple Sanghi,Director, Investments, Omidyar Network India Advisors, said of the new partnership with IntelleGrow: “Omidyar Network’s investments in entrepreneurship build on the principles of traditional venture capital, we support market-based approaches to catalyse economic change. By supporting debt for Indian social ventures through IntelleGrow, we hope to spark greater confidence among mainstream investors in this model.”

Satyam Darmora, Director, Family Economic Stability, Michael & Susan Dell Foundation, said: “We are pleased that early risk capital has helped IntelleGrow to successfully expand and scale while supporting early stage organizations in the education and health sectors. This aligns with the Michael & Susan Dell Foundation’s mission to catalyse high impact education, health and family economic stability organisations and programs. With the new investments, we are confident this will usher in a new approach to helping the underprivileged, urban poor through IntelleGrow’s successful model.

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