Indian Angel Network (IAN) has partnered Indifi Technologies to launch a growth stage debt fund to help IAN portfolio companies get access to working capital.
"Several start-ups with a sound business model are struggling to keep up with their working capital needs due to a sudden impact on their business induced by COVID-19," IAN co-founder Padmaja Ruparel said. This is the time to handhold companies and help them in every possible way that does not halt operations and ensures business continuity, she added.
"The idea behind this partnership is to create support system aimed at accelerating the growth trajectory of new-age start-ups looking to adapt and excel during these difficult times," Indifi Technologies CEO and MD Alok Mittal said.
He added that the partnership will help IAN portfolio companies seamlessly navigate the highly competitive and continuously evolving business landscape. Through this fund, start-ups will be able to avail debt in the range of Rs 10 lakh to Rs 2 crore based on the revenue pattern of the business.
This will benefit start-ups with no equity dilution or other equity-related rights for the lender. Depending on product structure and the growth periodicity of business, loan repayment duration will range between 18 months and 36 months, the statement said.