Foxhog Ventures has filed draft IPO papers with the market regulator SEBI and is looking to raise ₹630 crore through this initial public offering.
The price band eyed for the initial public offering is between ₹170-200.
Foxhog Ventures invests in farmers, small businesses, women entrepreneurs in villages, small towns etc. It strives to provide an alternative financing solution to small farmers and businesses in small towns and rural areas. It makes ‘revenue-based’ investments, wherein it receives a percentage of the profit earned by the businesses it invests in.
The USP of Foxhog is collateral-free financial model to farmers and small business owners. This way it aims to correct the imperfections in current rural financing system.
“Small farmers are expected to benefit the most from Foxhog Ventures’ initiative in rural India,” said Tarun Poddar, India Head and MD of Foxhog Ventures.
“As it’s an investment, there is no collateral, EMI, or interest rate. Neither is the customer required to repay the principal amount because Foxhog is earning from the percentage of profit as mutually agreed by both the parties”.
Among small farmers, Foxhog is particularly focussed on women farmers. The company currently operates 24 branches, 13 micro branches, and more than 40 customer service points in India and one in Malta, Europe.