The Insolvency and Bankruptcy Code (IBC) 2016 has had a reasonably good beginning with the Insolvency and Bankruptcy Board of India (IBBI) being made operational from December 1, 2016. According to available data, more than 120 cases have already been filed with the National Company Law Tribunal, the adjudicating authority on corporate insolvency matters. The cases have been filed by operational creditors, financial creditors or the companies themselves for adjudication under the new bankruptcy code. NCLT has admitted around 85 matters, but most of the cases are in the initial stage with interim Insolvency Resolution Professionals (IRPs) appointed. The IRPs are mandated by the code and IBBI regulations to appoint valuers to determine liquidation value, collect claims and set up the committee of creditors involved in a case. The IRPs are then tasked with suggesting a resolution plan after taking into account business viability, debt size, etc. They are empowered to solicit help from industry specialists, investment bankers and other competent personnel while structuring a resolution plan. The resolution plan can be in the form of debt restructuring, one-time settlement of debt, merger/de-merger, sale of the business, etc. The committee of creditors has 180 days to approve the resolution plan from the date of admission of the company under the insolvency process. The same can be extended by 90 days in genuine cases where a resolution is about to happen. In case the committee of creditors cannot approve any of the resolution plans, then the company would go directly into liquidation. Despite the challenges, the new law, with its time-bound approach, surely provides a refreshing change and makes it easier for creditors to recover loans faster.
OneAssist Consumer Solutions – which provides protection for credit cards, smartphones and payment cards in case of loss or theft – has raised Rs.118 crores ($18 million) in its series-C round of financing. The round was led by existing investors Sequoia Capital India along with participation from Lightspeed Venture Partners and New York-based insurance provider Assurant. The round also marks the entry of new investor, UK-based Moonstone Investments.
Mumbai-based fintech startup Kissht has raised $2 million from Hyderabad-based early-stage venture capital firm Endiya Partners, and Ventureast. Kissht app provides collateral-free loans to users. Kissht app users can buy various items within the app. These items include mobiles, laptops, jewellery, and electronics.
Online lending startup LoanTap has raised $4 million from Kae Capital, India Quotient, IFMR and MAS Finance along with other angel investors, in a round that saw a mix of equity and debt instruments. The capital will be used mainly for onward lending. LoanTap has an integrated loan processing platform as well as an in-house NBFC to disburse loans. It offers EMI free loans, personal loans, salary overdraft, rental deposit among other products.
Julia Computing, the company founded by the creators of open-source programming language Julia, has raised $4.6 million (about Rs.30.6 crore) from US-based General Catalyst and Founder Collective. It plans to use the money to accelerate product development.