Jiraaf is a new platform for alternative investment in India. What makes this platform different from others is that it lists assets across the yield curve rather than sticking to one kind of deal. In this Jiraaf review, let us know about the platform in detail, various types of products and investment opportunities available, Jiraaf team, and more.
Jiraaf Investment Opportunities
Jiraaf is a new platform for alternative investment in India. Opportunites which one can expect to invest in through the platform are:
- Invoice Discounting
- Revenue Based Financing/Venture Debt
- Real Estate NCD/Non Real Estate NCD
- Securitized MLD
Invoice discounting is the practice of using a company’s unpaid accounts receivable as collateral for a loan, which is issued by a finance company. This is an extremely short-term form of borrowing
Revenue Based Financing
Revenue-based financing is a way that firms can raise capital by pledging a percentage of future ongoing revenues in exchange for money invested.A portion of revenues will be paid to investors at a pre-established percentage until a certain multiple of the original investment has been repaid.
Real Estate NCD
Real Estate NCDs are Non-Convertible Debentures that provide debt to developers which adds value in the early stages of development. Such structures are used to raise short-term secured loans from investors. The developer in turn ensures a regular flow of income to the investor through monthly/quarterly interest pay-outs.
Securitized Covered bonds are debt securities in which issuers transfer collateral backing bonds to a Special Purpose Vehicle (SPV). This allows the collateral to be ‘bankruptcy remote’ in the event that the issuer goes under. These are issued as MLD for better tax benefit for investors
Equipment leasing is a type of financing in which the small business owner rents the equipment rather than purchasing it. Business owners can lease expensive equipment such as machinery, vehicles, computers, and other tools needed to run a business. The equipment is leased for a specific period.
One of the strong features of Jiraaf is that its team has a strong background in deal structuring and risk management, The other USP is that is backed by some of the top founders in various industries. This adds a lot of credibility to the platform
Some of the names who have invested in the firm include cofounder of Pharmeasy and Medlife
Jiraaf only lists opportunities that pass a thorough internal credit & risk assessment process. It has a Strong focus on post-investment monitoring, audit & compliance by – house asset management team. They have partnered with strong companies for all the support functions.
Opportunities on Jiraaf
Past opportunities on Jiraaf include invoice discounting and corporate debt
Current Everest Fleet Lease Finance opportunity is live on Jiraaf
Jiraaf vs Grip Invest vs Upcide
There will be many overlapping opportunities for leasing on Gripinvest,Upcide, and Jiraaf. Just by looking at the post-tax IRR might give an incomplete picture. The points to compare similar lease deals are below.
1. Pre- tax return & Post tax return should be compared .Example for Jiraaf deal it is 17.5% and 12.4% while pre-tax / post tax return for Grip was 22.2% / 10.5% respectively.
Jiraaf has alternatives in different types of deals. In leasing, Grip Invest has the most volume and variety. For invoice discounting, Tradecred is the alternative. Corporate debt is one area where currently there are no players in the high debt segment.
How to Register on Jiraaf
You can register on the platform using the below link to avail future benefits and fast access to deals using the below link
This is the Zomato/Swiggy moment for Indian Alternatives as more platforms are going to drive the competition up and they will have to provide the best deals to investors. Jiraaf seems to be an interesting player. If they are able to manage a good deal flow we can expect to have a higher allocation to the platform.
We hope you liked our in-depth Jiraaf review and we hope it will help you make a prudent investment decision. Incase you have already tried their platform, share your experience via comments.