New Delhi, July 20 -- Hong Kong-based credit investor ADM Capital has realized an investment it made in India nearly five years ago, marking another successful exit from its Asia-focussed private credit portfolio.
The firm, which focuses on Asia-Pacific markets, manages more than $2 billion in assets and has deployed over $800 million (Rs 7,713 crore) in India since 2004 through private credit, structured debt, and ESG-integrated financing.
It has now exited its structured debt investment in Gurugram-based real estate marketplace Square Yards, which was valued at over $1 billion in a recent funding round.
ADM Capital, operated by Asia Debt Management Hong Kong Ltd, had extended $25 million in structured debt to the company in July 2021. The non-dilutive growth financing was used to support the expansion of Square Yards' real estate brokerage business.
Since then, the company has grown its revenue sevenfold to about $220 million.
The latest development marks ADM Capital's another debt exit in India after its 2021 exit from fintech startup KreditBee two years after backing the company.
The Square Yards exit was funded through a combination of refinancing proceeds and company cash flows, ADM Capital said.
Last month, Square Yards raised $95 million through a mix of primary and secondary capital, achieving unicorn status. While EAAA India Alternatives Ltd led the equity investment, the debt portion was anchored by global corporate credit manager Muzinich & Co.
The company had earlier secured $35 million in equity from South Korea-headquartered venture capital firm Smile Gate Group in November last year. At the time, VCCircle reported that it was valued at about $900 million on a pre-money basis. The startup is now preparing for another fundraising before its planned public market debut in the current financial year. It is in talks to raise an additional $50-60 million over the next quarter at a valuation of around $1.6 billion, VCCircle had reported in June.
Queries sent to ADM Capital remained unanswered till the time of publishing this article.
Square Yards operates an integrated platform spanning property transactions and mortgage distribution, enabling customers to move from property discovery to financing within a single ecosystem. Its fintech arm, Urban Money, serves as the group's lending platform, facilitating loans for both in-house buyers and third-party customers.
The broader platform, which includes Square Yards and Urban Money, is supported by around 7,000 employees and nearly 30,000 active agents, along with a large network of lending partners. Around 80% of these partnerships are with banks, while the remaining are with non-banking financial companies (NBFCs) that account for a larger share of unsecured lending.
The group also operates Azuro, its rentals and property management platform, and Interior Company, its wholly-owned home interiors and modular furnishing business. It additionally runs technology-led B2B platforms, including a property valuation and title intelligence platform and PropVR, an AI-powered solution offering immersive 3D, virtual and augmented reality property experiences.
For the last financial year, the group reported a 48% year-on-year increase in revenue to Rs 2,050 crore, while gross profit rose 52% to Rs 316 crore, according to the company.
Published by HT Digital Content Services with permission from VC Circle.