Published on : Thursday, September 21, 2017
To meet the company’s growth and diversification needs and enhance the service offerings the Nasdaq-listed Yatra.com raised a $15.4 million (Rs 100 crore) in a venture debt from the InnoVen Capital India Pvt.Ltd.
Yatra Group CFO Alok Vaish said that this debt fund will provide an additional sum for the growth needs, last year it raised $92 million through Nasdaq listing. This has been reported as the largest ever venture debt deal funded by an Indian firm.
Chin Chao, the interim CEO of the InnoVen Capital India and the CEO of InnoVen Capital South East Asia said that InnoVen’s cross-border funding will help the Yatra’s team in meeting the financial needs across different geographies. Innoven Capital had earlier invested $4 million in Yatra, back in 2013.
Air Travel Bureau Ltd was in July acquired by Yatra, the deal was pegged at $22.5-27.5 million as per the US Securities and Exchange Commission.
The startup was founded in 2006 and in July, media conglomerate Bennett, Coleman and Co Ltd sold its equity convertible warrants in Yatra Online, Inc for Rs 39 crore.
The company is supported by venture capital, private equity and strategic investors. Last October, a small stake was sold out to Reliance Industries Ltd as a part of a deal to an existing partnership. Reliance had pre-installed the Yatra mobile app in it Lyf-branded 4G handsets.
Yatra had signed a reverse-merger agreement with the US-based special purpose acquisition company Terrapin 3 Acquisition Corp that was listed on the Nasdaq. It paved the way for back-door listing of the second Indian online travel services provider in the US.
Venture debt has been an important tool to raise funds for companies as it rarely involves a stake dilution by promoters, besides providing companies with more time to grow. The online travel segment in India is still growing, despite having witnessed a slowdown in venture capital activity.