If you have been exploring alternative investing in India, there is a high chance that you have come across a platform named Altgraaf at some point. It shows up on forums, blogs & social platforms promising high returns through fixed, invoice discounting, etc. But before you put your hard-earned money into any platform, it makes sense to ask the obvious question: is Altgraaf safe, and is it actually worth it?
This Altgraaf review covers everything you need to know about the platform. We will look at what Altgraaf is, the different investment options it offers, if it’s regulated or not, whether it is safe to invest in, and some Altgraaf alternatives you can consider. By the end of this article, you should have a clear picture to help you make an informed decision.
What Is Altgraaf?
Altgraaf is an online investment platform that focuses on alternative fixed-income products- primarily invoice discounting opportunities. The platform was founded in 2021 by Vineet Agrawal and Saurav Ghosh. Its product mix primarily includes invoice discounting (spread across different types) apart from fixed deposits.
Deals listed on the platform usually carry annualized IRRs between 10 to 14 percent, with tenures starting from 30 days, and a minimum investment of around Rs.95000. Altgraf claims that all opportunities listed on the platform go through our robust credit, due diligence, and risk assessment framework.
This sounds attractive for investors looking to diversify beyond stocks and traditional debt instruments. However, it is important to understand the various types of offerings in detail- which we’ll understand in the next section.
Types of Invoice Discounting Categories on Altgraaf
Alt Smart
This is the type of invoice discounting in Altgraf with the lowest risk among others. The amount is 100% secured by Bank Guarantee and all repayments are made via altGraaf controlled escrow account. The expected IRR is around 9%-10% for such deals. Though it comes with a bank guarantee which provides a sufficient cushion against risks, there might be extremely rare events like fraud with authenticity of transacting documents, bank itself facing financial difficulties etc.
Alt Armour
This is the type of invoice discounting in Altgraf with considerably low risk among others. It comes secured with Trade Credit Insurance and all repayments are made via altGraaf controlled escrow account. The expected IRR is around 10%-11% for such deals. While the insurance covers the entire investment amount plus the interest, in the event of delay/default, the final approved claim by the insurance company could be equal to or lower than 100% of full principal and interest.
Alt Blu
In this type, the invoices raised by blue chip or established companies and all repayments are made via an altGraaf controlled escrow account. The expected IRR is around 11%-12% for Alt Blu deals. They do not come with a bank guarantee or in some cases might not have trade insurance in place as well.
Alt Pack
In this, the underlying investment is made against a basket of invoices from various buyers-of-goods/customers. This ensures diversification and reduces risk. The expected IRR is around 10%-13% for Alt Pack deals. The risk varies depending on the pool of invoices. Alt pack deals are less common on the Altgraf platform.
Alt Wings
This is the riskiest among the lot but also deals of this category are commonly listed on the platform. Here, the investments are done in invoices of upcoming companies. There is no escrow control for repayments nor bank guarantee or trade insurance in place. The expected IRR is around 12%-14% for Alt Wings deals.
Altgraf Fixed Deposits
This is another offering on Altgraf available only on their mobile app. They offer FDs of small finance banks like Shivalik, Utkarsh, Suryoday, Unity, AU, etc along with regular banks like DCB & South Indian Bank & NBFCs like Shriram Finance & Bajaj Finance. There is nothing special in the offering here- the same FDs are being offered nowadays on almost all Indian fintech platforms but nonetheless its a good value addition from Altgraf.
Is Altgraaf Safe or Not?
This is probably the most important question in any Altgraaf review, so let’s address it directly. Altgraf is not registered with SEBI. Products sold on an unregistered platform do not carry any safety net or scrutiny by the regulator. Apart from this, invoice discounting- as a product category, comes with multiple risks involved. Some of them are as follows:
- Credit Risk: Inability of the borrower to repay the promised amount.
- Liquidity Risk: Inability to liquidate before the maturity of the investment.
- Fraud Risk: Wilful default on payments by borrowers or fraud with the transacting documents.
However, having understood the lack of regulations & generatory category risks, it is important to note that Altgraf as a platform has taken some measures like bank guarantees, trade insurance, etc to minimize defaults & risks involved. However, due to the nature of the offering, one has to tread with caution & allocate only a small portion of their overall portfolio to such assets.
Altgraf Alternatives
If you like the idea of invoice discounting as an alternative fixed-income investing product but looking for more options except Altgraf, following are some options to consider.
Ultra: Formerly known as Tap Invest. Offers alternative investment products like asset leasing as well apart from invoice discounting & the standard- digital gold, digital silver, FDs, etc.
Better Invest : This platform focuses on invoice discounting of companies in the media & entertainment industry. Invoice Discounting in Media & Entertainment like OTT, Music Rights, TV Shows, etc. sold to global platforms, channels, etc.
Amplio : Formerly known as Tyke. Another invoice discounting platform which provides IRR of upto 13%.
Conclusion
Altgraaf offers an interesting alternative fixed-income product- invoice discounting. We have already discussed previously the lack of regulations around the invoice discounting product but still Altgraf has taken some steps like bank guarantees & trade insurance to safeguard investor interests & reduce risks which is a welcome move.
However, invoice discounting itself has risk elements attached to it. As with any investment, do your own research, read the fine print on each deal, and only invest money you can afford to lock in or potentially lose. Alternative investments can be a useful part of a diversified portfolio, but they work best when you fully understand both the returns and the risks involved. If invoice discounting is an alternative investment option you are considering in India, Altgraf is definitely one of the strong platforms you can consider.
