Green energy technology firm Proklean Technologies Pvt. Ltd., has secured Rs 6.5 crore (around $875000) venture debt from Caspian Debt, the lending arm of impact investment firm Caspian Impact Investment Adviser.
According to the statement, the current investment enables a flexible loan structure and unique repayment schedule with a moratorium, allowing the start-up to accelerate expansion and meet rising demand before the next capital round via equity, the startup said in a statement.
"The company plans to use these funds to scale its B2B line, and tap into new industries that need research-driven environment-friendly solutions," said Avishek Gupta, CEO of Caspian Debt.
Founded in 2012, Chennai-based Proklean Technologies has developed proprietary technologies using renewable input materials to make products that provide solutions to problems such as pollution caused by multiple industries and depletion of renewable resources.
"The venture debt has allowed us to further invest in growth and delay the equity fundraise by a year. Caspian Debt has been associated with Proklean for over five years and we have had multiple transactions with them," added Alok Goel, chief operating officer at Proklean.
Caspian Debt is a digital corporate lending company that offers custom debt solutions to professionally managed small or mid-market companies and start-ups founded by first-generation entrepreneurs. The company was set up to fill the gap for non-dilutive funding available for first-generation entrepreneurs. Venture debt helps companies raise funds without diluting equity shareholding.
Over the last eight years, Caspian Debt has disbursed debt over Rs 2,000 crore to 180 startups, social enterprises and mid-market companies.
Recently, Caspian Debt backed Qarmatek, the refurbished electronics startup along with Gujarat Venture Finance Limited.
Last year, Caspian Debt partnered with Chennai-based social enterprises incubator Villgro to provide debt solutions to impact-focused startups.
In May 2020, Caspian Debt raised $20 million (Rs 151.14 crore at current exchange rates) as long-term debt from the US International Development Finance Corporation (USIDFC), an arm of the US government that provides finance to impact-oriented projects.