Profectus Capital Mops Up $25 Mn

Hyderabad: Profectus Capital Pvt Ltd, a non-banking finance company focused on MSMEs, raised $25 million (Rs205 cr) through issuance of non-convertible debentures (NCDs) to International Finance Corporation (IFC), a member of the World Bank Group.

This is IFC’s first investment to finance energy efficient (EE) machinery for MSMEs in India, a niche asset class in the financial services sector. Since the proceeds will be used to fund green assets, the NCDs have been labelled as green bonds, and Profectus Capital has developed a Green Bond Framework in line with International Capital Market Association’s Green Bond Principles. IFC’s support will enable Profectus Capital to scale up EE equipment financing for MSMEs, which is key to India’s climate goals.

KV Srinivasan, Founder, Profectus, said: “We are delighted to partner with IFC, a member of the World Bank Group. It is an honor for us and an affirmation of the robustness of our business model and performance that a prestigious institution like IFC has expressed faith and confidence in us.”

This partnership is of immense significance and value to us given that this is the first investment by IFC in India to finance purchase of energy efficient equipment by MSMEs. It will go a long way in aiding MSME capital investment in India. Since the commencement of our operations in 2018, we have progressed well in all dimensions including business growth, asset quality, and profitability despite many macro headwinds. With IFC’s investment in our green bonds, we look forward to further consolidate our position in the MSME market, he added.