Lease financing has been known for many years, but it was predominantly offered to large companies like Reliance Industries by NBFCs and other financial institutions. In 2020, Grip brought this offering as an investment product for individual investors - from young working professionals to millennials.
Since its inception, Grip has partnered with 70+ venture-capital backed high growth companies to enable asset-backed financing through two investment products: (i) Lease Financing; and more recently (ii) Inventory Financing.
This report provides insight on the overall breakup of investments and financial performance of these partners. It is based on the financial data of FY22.
The Lease and Inventory Financing opportunities are spread across a diversified range of products comprising electric vehicles, furniture, apparel, warehouse equipment, etc.
The partners, companies such as Udaan, Furlenco, Battery Smart, Stanza Living, Blue Tokai, etc., represent an equally diversified range of industries.
Grip has enabled investments of INR 195 Cr through Lease Financing and INR 32 Cr through Inventory Financing for these companies and returned INR 67 Cr in lease receivables to investors.
The sector-wise breakup of investments made on Grip’s platform is shown below.
The partners reported a total revenue of nearly INR 2,600 Cr, which represented a growth of 62% in FY22 (vs. FY21).
Ninety six percent (96%) of the partners have seen a growth in revenue during FY22 (vs. FY21). Revenue for 24 of Grip’s partners grew by more than 150% in FY22.
Revenue for 44% of partners grew by more than 150% in FY22 (vs. FY21). Only 3.6% of partners reported a decline in revenue in FY22 (vs. FY21) and they did so on account of downsizing some of their loss-making verticals to improve profitability.
Based on the FY22 data received as of 9 May 2022
Based on the FY22 data received as of 9 May 2022
Grip’s partners have raised more than $400 million of equity and ~$66 million of debt in FY22 from marquee financial institutions such as Sequoia Capital, Elevation Capital, Qualcomm Ventures, Accel Partners, CLSA Capital Partners, Alteria Capital, Chiratae Ventures, Anicut Capital, Y-Combinator, Blacksoil, Northern Arc, Innoven, etc.
While there have been isolated instances of 1-2 days of delay in payments from a few partners, Grip has ensured that investors continue to receive timely returns through the credit enhancement package put in place, which includes (but not limited to) a security deposit from the partners.
A significant majority of the portfolio companies are fundamentally strong and competitively placed to ensure business continuity and growth. Grip will continue to monitor the performance of its portfolio companies and endeavor to maintain a low default risk, while exploring new opportunities for its investors.