Alteria Capital INR 1000 Cr fund closed; Offers New Debt Alternatives

Alteria Capital INR 1000 Cr fund closed; Offers New Debt Alternatives

Alteria Capital, a leading venture debt fund in India today announced that its third fund’s first closure had reached Rs 1,000 crore. Alteria Capital Fund 3 Scheme A, the third venture debt fund, will provide innovative startups a variety of specialised debt alternatives.

With checks up to Rs 150 crore, the fund will target Indian entrepreneurs in their early and growth stages. Additionally, a new programme will be added to the fund specifically to help businesses with working finance.

The Securities and Exchange Board of India (SEBI) gave Alteria Capital permission to complete its third venture debt fund in Q2 2022 with a target corpus of Rs 1,000 crore and a greenshoe of Rs 1,000 crore.

With an AUM of Rs 3,800 crore across three funds, the venture capital says it manages one of the largest pools of capital for venture debt for Indian startups, at present.

Alteria Capital to focus on innovative startups

Punit Shah, Managing Partner, Alteria Capital, said, “For the venture debt asset class, India is a relatively younger market compared to its global peers, which reflects a significant opportunity for raising and deploying capital. With the third fund, we hope to play a meaningful role in bridging this gap over the next few years.”

Vinod Murali, Co-founder and Managing Partner, Alteria Capital, said, “This is our third fund in five years, which signals the strong momentum in the venture debt industry as a growing asset class in India. Consistent, stable returns over the years with strong credit risk performance, and upside potential from equity kickers have proven to be a healthy combination for investors.“

“We have witnessed the venture debt asset class grow over 20X in the last 10 years across multiple cycles, and we feel humbled to have played a meaningful role in its evolution. We are grateful to all our investors and founders who continue to trust us in channelising large pools of domestic capital towards fuelling disruptive startups in our country,“ said Managing Partner Ankit Agarwal.

Rebel Foods, Spinny, Mensa Brands, Dealshare, Good Glamm Group,, BharatPe, Dunzo, Cars24, Niyo, EarlySalary, Zepto, Chaayos, Wow Sciences, Medibuddy, Sunstone Eduversity, Cropin, and many more are among Alteria’s more than 100 portfolio firms.