Indel Money raises Rs 50 Cr through its first market-linked debenture offering
- ByStartupStory | September 30, 2022
A gold loan non-banking financing business, Indel Money Limited, the flagship firm of Indel Corporation, has recently generated Rs 50 crore via the sale of the first tranche of its principal-protected market-linked debentures (MLDs). The MLDs have a set coupon rate and tenors of 16 and 18 months, and they were issued on August 30, 2022, via Yubi (previously CredAvenue), a fintech debt marketplace.
HNI offices and investment companies from metropolises like Mumbai, Delhi, Chennai, Jaipur, Ahmedabad, etc. quickly snapped up the first batch of MLDs. Indel Money is preparing to issue the second portion of the MLDs in Q3FY23 in order to raise an additional Rs.250 crore. To increase its book size and geographic reach, Indel Money will use the proceeds from the MLDs.
Umesh Mohanan, Executive Director and CEO, Indel Money Ltd said, “We are pleased to witness such a strong demand for the first tranche of our MLDs. It underlines the trust of the investors in the competitive strength of our business model and our enhanced position in the gold loan industry.”
The CEO added, “The market placement expertise of Yubi also helped us develop a broad investor base for the MLDs. For investors, our MLDs offer a short-tenure investment option with principal protection and assured return/pay-off despite market volatility. Our gold-backed MLDs aptly address the illiquidity concerns over the investments.”
He further said, “The MLDs will help us further diversify fund-raising avenues. The launch of MLDs is a part of our mission to expand our presence across India and further build our operational efficiency. We look forward to a stronger investor traction for the second tranche scheduled in Q3FY23.”
Moreover, Indel Money will expand into Maharashtra in Q3FY23 and Gujarat in Q4FY23, adding 90 new branches to its network by the end of FY23. Aiming to meet the unmet demand for loans, the firm plans to expand its branch network to more than 500 locations across 11 states by 2023. Spread over the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Odisha, Telangana, and the union territory of Puducherry, Indel Money operates a total of 225 branches.
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