New Delhi, August 03, 2023: Grip, a leading fintech platform, has announced the launch of its new Securitized Debt Instrument (SDI) offerings InvoiceX and LoanX, poised to revolutionize the alternative investment landscape in India. With these two new products, the company aims to enable 750 Cr Investments in the Next 12 Months. Grip launched its first SDI product in October 2022, and has successfully enabled over 100+ Cr in investments within its first year.
Building upon this momentum, Grip has taken a significant leap forward by introducing InvoiceX and LoanX. These offerings adhere to the stringent regulatory guidelines laid down by SEBI and/or RBI and are exchange-listed, rated alternative investment opportunities that offer investors the chance to participate in non-market linked investments through SDIs.
Since June 2020, Grip has emerged as a trailblazer in the alternative investment domain, offering scalable investment products like asset leasing and inventory through innovative structuring, enabling investments of over 700 Cr for individual investors in the last three years. Lease payments from movable assets (branded as LeaseX) was a SEBI-compliant innovative investment option that had quickly gained traction among individual investors, offering scalable, cost-effective execution while meeting their requirements for diversification and fixed non-market linked returns.
The previous SDI product has gained significant interest due to its investor-friendly features, including SEBI compliance, listing on NSE/BSE for transparency, credit rating by reputed agencies for risk assessment, management by an independent trustee to eliminate fraud, dematerialized securities for easy trading, and an efficient tax structure with returns expected to be taxed at the marginal rate (for individuals). Additionally, the SDI products allow for the creation of diverse fixed-income offerings with different types of cash flows, catering to a range of risk-reward preferences. It is offered in a minimum investment size of 1+ lakh for private placement and can be offered in even smaller amounts for public issuances.
Nikhil Aggarwal, Founder & CEO, of Grip, stated, “We are thrilled to introduce InvoiceX and LoanX, in addition to LeaseX, as part of our SDI offerings to empower investors with diverse avenues to grow their wealth while adhering to the highest standards of compliance and transparency. The SDI has allowed Indians to generate passive fixed income and has opened up new avenues for investments. We are also proud to have enabled over 100+ Cr in investments within the first year of debuting the SDI on NSE. As more investors embrace the SDI, we anticipate this investment instrument will become even more prevalent in the market. SEBI’s foresight in creating the SDI regulatory framework in 2008 has proven instrumental in driving innovation and growth in the investment landscape. In recognition of the growing adoption of the SDI, SEBI has included the SDI as one of the instruments under its OBPP (Online Bond Platform Providers) framework, encouraging asset managers to create more SDI products and enabling registered fintech to facilitate wider distribution.”
With the support from leading legal and tax advisors, merchant bankers, SEBI-registered trustees, and rating agencies, as well as guidance from SEBI and stock exchanges, Grip created India’s first NSE-listed alternative investment option, the SDI. Grip has enabled SDI investments with various cash flows providing investors with a wide range of risk-reward profiles, from A+ rated investments to high-yield BB-rated investments.
In recent years, fintech has been exploring various avenues to democratise sources of capital, driven by the insatiable demand for alternative investment options from individual investors. Alternative investments have witnessed substantial investor interest, with over a billion dollars invested through online platforms in India over the past 12 months. With a track record of over 700 cr of investments enabled, 130+ investment partners, and a user base of 24,000+, Grip has firmly established itself as a pioneer in the alternative investment field.