July 17, 2024: VentureSoul Partners, has unveiled its maiden Rs 600-crore fund, to invest in new economy startup with sustainable, promising business model.
According to a statement, this ector-agnostic fund with a focus on startups engaged in the fintech, B2C, B2B, and SaaS business.SEBI registered Category II alternative investment fund anticipates its first close soon and further invest in firms with a sustainable revenue model, at the Series A stage or beyond.
The VC aspires to create a niche, via a blend of banking principles with new-age credit evaluation technology, delivering tailor made solutions, onboardinhg a strategic long term partner. The firm stated it will emphasise on offering differentiated debt solutions to firms from the new economy.
According the firm India’s debt story is still in its early days. The New Economy client group has been reliant on equity until now. On average, venture debt funding in India is ~3% of the venture funding per annum, whereas in more mature markets it is ~13-15%.
VentureSoul Partners to invest in growth startups
Furthermore, VentureSoul will invest in the growth capital for the startups. A recent report by Stride Ventures said venture debt investments into Indian startups saw a 50% increase in 2023 to touch $1.2 billion. The report noted that 2023 saw around 175-190 deals, reflecting a compounded annual growth rate of about 34% from 2017 to 2023.
The company further says, there has been a steady evolution in the New Economy client group. ‘Growth-at-any-cost’ is being replaced with traditional models of unit economics and accretive cash flows. They believe Emerging new business models, for instance, gen AI, deep tech, climate tech, at the forefront and receiving continued interest.
Pharmaceutical company Micro Labs is the anchor investor for the firm’s maiden fund, with firm commitments from corporates and CXOs that include E Madhusudan, Founder of Kreditbee; Abhishek Khemka of Baazar Kolkata; and Ponnuswami M from Pure Chemicals group. VentureSoul Partners was founded by three former bankers from HSBC, Anurag Tripathi, Ashish Gala, and Kunal Wadhwa.
