A founder of Indian workspace startup Table Space raised about 2 billion rupees ($23.3 million) from private credit funds to finance the purchase of a stake in the company ahead of its planned initial public offering, according to people familiar with the matter.

Kunal Mehra, president and co-CEO of the Bangalore-based company, is buying the stake from an angel investor, the people said, who asked not to be identified because the information is confidential. Mehra raised the funds from creditors including Avendus Group, the largest lender to the deal, and InCred Alternative Investments Pvt, they added.

Table Space, which is backed by asset manager Hillhouse Investment, was founded in 2017 and manages over 10 million square feet of office space. Its clients include Bank of America Corp., Apple Inc., and Microsoft Corp., according to its website.

Funding new companies and their founders has been gaining ground among private credit funds in India, home to one of the largest startup ecosystems in the world. Earlier this year, the founders of Indian quick commerce company Zepto Marketplace Pvt. were planning a similar move to tap private credit and buy shares ahead of a planned public offering.

The tenor of the loan is about three years with a put option at the end of two years, said the people. The debt could yield between 15% and 17%, depending on factors such as the valuation of the company’s proposed listing. That’s roughly in line with how Zepto’s deal had been expected to price.

Avendus declined to comment and InCred did not reply to a Bloomberg News email seeking comment.

Hillhouse owns 41% of the company, according to a Table Space spokesperson, who did not comment on the specific transaction. “Any material financial information requiring public disclosure will be communicated through proper regulatory channels and official company statements,” the spokesperson said.