What Is LeaseX? Grip's Rated & Listed Investment Option

Grip Invest
Published on
May 05, 2023
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    Grip's Rated & Listed Investment Option

    Have you ever wished for an investment product that is not only easy to invest in but also provides attractive returns? If yes, then LeaseX by Grip is the perfect solution for you. To begin with, let’s summarise what Grip is for those who are new to the platform - if you’re a seasoned Grip investor, you can skip to the next section.

    What Is Grip?

    Grip is a platform that connects companies in need of capital with investors who want to diversify their portfolios. Instead of relying on traditional financing methods, companies can turn to Grip to obtain the necessary capital. Investors provide the capital through Grip, and companies pay them back in monthly or quarterly instalments. Simply put, Grip helps retail investors go beyond inflation, volatility and unpredictability. Now let’s talk about LeaseX - an exciting investment opportunity for those who have loved our Asset Leasing & Inventory Finance products in the past!

    What Is LeaseX?

    LeaseX is a unique investment product that allows investors to become lessors and earn attractive returns by leasing different kinds of assets to different companies. The concept of leasing is not new to us, as we encounter leasing arrangements in our daily lives, such as rental flats. The difference between leasing and a rent agreement is - Leasing is usually for longer periods of time (11 months in this case) and rentals for each month are fixed and usually homogenous. In this arrangement:

    • Landlord is the Lessor
    • Tenant is the Lessee
    • Apartment is the leased asset
    • Monthly rentals are the Lease receivables

    On the same lines, companies have large requirements for assets for which they enter into leasing arrangements. However, LeaseX takes this concept to a whole new level, making it accessible and attractive to individual investors.

    At Grip, we believe in creating investment products that offer investors an opportunity to become a part of the growth stories of companies such as BluSmart, which require assets to grow their businesses. However, equity capital becomes too dilutive for companies when they need to fund mission-critical assets. This is where LeaseX comes in, providing an alternative capital source that is better suited for this purpose.

    Example of Blusmart & how LeaseX investors get returns

    LeaseX allows investors to lease different kinds of assets to different companies, all in one investment instrument. This makes it a unique investment product that combines the benefits of diversification, attractive returns, and an easy-to-understand investment structure.

    Did You Know?

    LeaseX is listed on the National Stock Exchange (NSE), making it the first-ever such instrument to be listed on the exchange. It is also rated by CRISIL, making it the first such instrument to receive a credit rating in India.

    One of the most exciting features of LeaseX is that it is available for 100% individual investor participation. This means that even small investors can become a part of LeaseX and enjoy the benefits of leasing without having to invest large amounts of money. This is a major shift from traditional investment products, which are often limited to institutional investors or the top 0.1% high net worth individuals.

    Understanding The Concept Of Pooled Lease Receivables  

    Let’s take a quick look at how capital would flow from start to finish for a LeaseX opportunity with a multiple lessee pool with the help of an illustration.

    In conclusion, LeaseX by Grip is an innovative investment product that offers investors an opportunity to become lessors and earns attractive returns by leasing different kinds of assets to different companies. Its unique structure, combined with the benefits of diversification and an easy-to-understand investment structure, makes it an instrument of the future. Furthermore, its availability for 100% individual investor participation makes it accessible to small investors who would otherwise be left out of such investment opportunities.

    Did You Know?

    Grip offers LeaseX opportunities on a wide spectrum of risk and reward, that investors can choose from suiting their portfolio. Each opportunity is individually rated by a rating agency; past offerings have ranged from A+ to BB providing returns from 11% to 18%.

    In summary, Grip's introduction of LeaseX represents a new way for companies to access capital and for investors to diversify their portfolios. By pooling together multiple companies and rating them based on their creditworthiness, LeaseX provides investors with a clear idea of the risks and potential returns associated with the investment. Since LeaseX is a regulated and listed product, it provides investors with an added layer of security and assurance. Ultimately, LeaseX represents a win-win situation for both companies in need of capital and investors looking to diversify their portfolios.

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    Happy Investing!

    Disclaimer: This communication does not constitute advice relating to investing or otherwise dealing in securities and is not an offer or solicitation for the purchase or sale of any securities. Grip Invest Technologies Private Limited ("Grip") is not registered with SEBI in any capacity and does not advise, encourage, or discourage its users to invest or not invest in any securities. Grip is solely an execution-only platform and does not guarantee or assure any return on investments made by you in any opportunities sourced by Grip and accepts no liability for consequences of any actions taken based on the information provided. Your investment is solely based on your judgement. Investments in debt securities are subject to risks. Read all the offer related documents carefully.

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