Private credit fund manager Vivriti Asset Management (VAM) has raised commitments of $40 million for its retail assets fund from the UK’s development finance institution and impact investor British International Investment (BII); and US-based Calvert Impact, a global non-profit investment firm.
Launched in 2023, Vivriti India Retail Assets Fund (VIRAF) is a $250-million asset-backed securitisation (ABS) fund in India that seeks to scale investments in small-ticket loans to MSEs as well as individuals with a focus on women entrepreneurs.
BII committed $30 million alongside $10 million from Calvert Impact to the senior debt tranche of the fund, joining existing investors including M&G Catalyst and IFC. Previously, VIRAF had secured investments worth $30 million and $75 million from the International Finance Corporation (IFC) and M&G Catalyst, respectively.
The latest investments bring the fund’s total close to $150 million.
In a media roundtable on Thursday, Dipen Ruparelia, head of products at VAM, said the fund has another commitment of $20 million lined up in the final process of documentation. He added that the fund expects to close fundraising in 12 months.
VIRAF has a fund term of 10 years and is domiciled in GIFT City, International Financial Services Centre. As of December 2024, VIRAF has cumulatively invested $140 million in 40+ ABS and bond transactions. These loans have reached over 194,000 individuals and over 78,000 MSME borrowers. Of thsse, approximately 76% are women.
Over 10 years, VAM aims to cumulatively invest over $1 billion in retail ABS.
“Supporting financial inclusion for MSMEs and women-led businesses is a key priority for us in India. This innovative securitisation structure will not only provide essential access to finance for local businesses but also demonstrate its commercial viability to mobilise more commercial investors,” said Srini Nagarajan, Managing Director and Head of Asia, BII.
Most recently, BII invested Rs 400 crore in SBFC, a Mumbai-based financial services institution providing loans to MSMEs, to help small businesses and women entrepreneurs in India grow their businesses.
BII claims that it has invested more in India than any other country, and its current portfolio is valued at $2.2 billion. Other investments by BII in India’s financial sector include Aavas Financiers, Altum Credo Home Finance, Annapurna Finance, IIFL Finance, Shubham Housing Development Finance, etc.
