Jiraaf is a 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. Opportunities 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 benefits 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 – the 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
The 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.
There are many platforms that cater to specific alternative investment asset class. If you are looking for a one-stop shop kind of platforms for multiple alternative investment options, the following are the closest 2 options:
Leaf: This platform was earlier (and even now) predominantly focused on equipment leasing. However, they have started bringing a considerable number of invoice discounting opportunities and even a few NCDs on its platform.
Grip Invest : This is by far one of the most popular and fastest-growing alternative investment platform in India. They have opportunities across invoice discounting, asset leasing, NCDs, corporate bonds, securitized debt instruments, etc.
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 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.
Frequently Asked Questions about Jiraaf
Is Jiraaf safe?
Every alternative invetsment opportunity comes with its share of risks associated with it. It is the investors job to evaluate the risks associated and take a decision accordingly. The platform claims to have close to 1.5 Lakh investors with INR 2400 crore worth of capital deployed through it. The founders, team and investors behind the platform also are trustworthy and experienced in their respective domains- which adds to the trust!
What’s the minimum investment on Jiraaf?
The minimum amount of money to invest varies according to the type of investment option you intend to invest in. As a ballpark figure, the minimum investment ranges around 1 Lakh.
What are customers Jiraaf reviews?
My personal experience with Jiraaf (as a customer) has been excellent as of now with all my repayments happening on time. Most customers also resonate with the same opinion if you look at online Jiraaf reviews.