1 Year Review of my Investment on Grip Invest ,which I started in 2020 when I was one of the first investor on the platform. Over a period of time I have invested in multiple deals and also know people who have done the same. The platform has since then done close to 50 deals. I have added Grip Invest (get early access benefits using link ) with my other alternative investment portfolio of Finzy , GrowFix ,Klubworks and TradeCred
Leasing Finance is one of the unexplored territory for retail investors though it is a very basic form of investment. Ancient clay tablets from 2000 B.C. Sumer record the leasing of farm implements. Ancient Phoenicians leased ships using very specific residual assumptions, thus making equipment leasing the world’s oldest form of finance. Banking, in contrast, began during the Roman Empire about 700 B.C., and compound interest did not exist as a concept until well into the second millennium.
Today, all types of personal property can be leased, including equipment used in transportation, manufacturing, mining and medical applications, as well as software and even intellectual property and artwork. And where would commercial real estate be without leasing?
Is Grip Invest Safe?
1 Year experience has been really good in terms of the performance. The IRR has been north of 12% post tax without any delay. My overall experience can be captured through.
- My Personal Grip Invest 1 year review
- Details of My Grip Invest Portfolio
My Personal Grip Invest 1 year Review
Equipment Leasing Deals with assets such as Ebikes, Charging Station, Kitchen Racks, Water purifier, Embroidery machines,home decor, Ambulance
Monthly Payment with maturity of 21-36 Months. Few deals have Liquidity after lockdown period
Fast growing companies in B2B and B2C space.Most compnies with recent round of funding.
Deal Frequency/Structure and Size
The deal is structured as an LLP which means that investor does not have to pay any tax on the cashflow. Almost Every week new deals with minimum ticket between INR 20k to INR 50K.Sometimes combo deals with multiple assets are also available.
What is the most stable investment? Basically something which can provide consistent cashflow with limited risk. How does Grip Invest manage risk?
- Comprehensive due diligence at the time of onboarding the partner which involves getting comfort on the liquidity, promoter, industry analysis, credit profile, marquee investors amongst other things.
- Security measures to protect against the risk like: escrow mechanism, charge on revenue, upfront security deposit, PDCs etc.
- Evaluation of the business performance of our partners on a monthly basis as we take monthly updates from them. Also the Portfolio exposure is into fast growing industries and with known brands, strong client base, relatively low risk amongst several other factors.
It secured its first round of equity funding in a round led by Anicut Angel Fund with participation from Gemba Capital and well-known angel investors such as Anupam Mittal, Sunjay Kapur, and Maninder Gulati
Details of My Grip Invest Portfolio
All my deal are performing as expected . Currently zero delinquency /delay .Some of the top deals Invested by me and my friends were
The opportunity involves leasing out storage racks, steel frames, IT equipment to the company on lease
Funds procured under leasing transaction were used to deployed charging stations and power infrastructure for Ashok Leyland
Embroidery machine set for manufacturing of clothes
The Investment was for leasing Home Decor and Home appliances to Furlenco
How to Invest ?
I follow the below points to analyze investment opportunity with Grip Invest
- Google information about the brand ; like latest funding, promoters, growth prospects
- Check the financials to see if it has adequate liquidity ,good cashflows and uptrend in growth.
- Prefer B2B deals and shorter tenor investment
- If you are investing from an account with lower tax rate ,you can choose to invest INR 2.5 Lakhs and get pre tax return directly.
My 1 year experience has been good with all cashflow on time. The Tax efficient structure is a big plus. Offcourse risk is higher than bank FD but considering the return it is worth putting a small part of your portfolio.