1 min read.Updated: 24 Jul 2019, 09:57 AM ISTM. Sriram
Bansal has doubled down on the debt and lending space
The investment has been made via BAC Acquisitions Pvt Ltd
Mumbai: Flipkart co-founder Sachin Bansal has invested ₹50 crore via debt in consumer lending startup Kissht, said a person directly aware of the transaction, requesting anonymity, continuing Bansal’s increased interest in debt transactions.
Kissht is a consumer credit start-up founded in 2015 by former McKinsey consultants Krishnan Vishwanathan and Ranvir Singh. It allows consumers to pay for their online orders in monthly installments, without a credit card. The company has tied up with over 3,000 offline stores and over 50 online merchant partners, including Amazon, Flipkart, Caratlane, MakeMyTrip and Uber, according to its website.
Bansal's debt investment is convertible to equity in case of repayment issues, although highly unlikely, said the person, on the condition of anonymity. The investment has been made via BAC Acquisitions Pvt Ltd., the company from which he invests, aided by investment banker Ankit Agarwal.
Kissht declined to comment while Bansal did not immediately respond to a text message seeking comment.
Further, The Economic Times also reported on Wednesday that Bansal has invested ₹25 crore in microfinance firm Chaitanya India Finance, and had been allotted 250 shares of the company, each with a face value of ₹10 lakh.
Mint first reported on July 15 that Bansal has also invested ₹200 crore in debt paper issued by Piramal Enterprises Ltd. Bansal has subscribed to non-convertible debentures (NCDs) issued by Piramal Enterprises, which has business interests in pharma and financial services.
Bansal has doubled down on the debt and lending space, after he sold his stake in online retailer Flipkart last year to US-based Walmart, raking in a billion dollars.
Since then, his debt investments include non banking lenders Altico Capital, IndoStar Capital Finance, Northern Arc Capital, besides Piramal Enterprises, besides two wheeler rental startups Vogo and Bounce.
Bansal’s debt play could be seen as an attempt to diversify his bets from the early equity investments he made as an angel investor over the years. Debt is traditionally a source of stable but lower returns, unlike venture capital, where returns can be astronomical but are far riskier.
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