Alteria Capital Closes Its Third Venture Debt Fund at USD 195 Mn In order to address the operating capital requirements of startups, Alteria Capital has a twin scheme strategy for its third fund, which consists of a venture debt scheme and a shorter duration scheme.
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Mumbai-based venture debt firm Alteria Capital has announced the final close of its third fund at INR 1,550 crore (USD 195 million).
According to an official release, the Alteria Capital Fund III Venture Debt Scheme, which has a target size of Rs 1,000 crore and a green shoe option, was substantially oversubscribed. This scheme will continue to back startups that have already raised VC funding and provide them with a range of specialty debt solutions upto INR 200 crore per company.
The fund will keep supporting entrepreneurs in the fields of consumer brands, e-commerce, logistics, business-to-business platforms, fintech, agritech, rural and agribusiness, healthcare, and climate technology. It will also assess businesses in the spacetech and Gen AI domains.
50% of the total capital commitments made by the fund have already been allocated to portfolio firms, which include: One Card; Renee Cosmetics; Samunnati; BlissClub; Rebel Foods; Giva; Lead School; Kissht; Captain Fresh; Traya; BlueStone; and Ather.
In order to address the operating capital requirements of startups, Alteria Capital has a twin scheme strategy for its third fund, which consists of a venture debt scheme and a shorter duration scheme.
It has also begun to raise money for the shorter duration scheme and plans to close the process by the end of 2024.
Vinod Murali, Co-founder and Managing Partner of Alteria Capital, said, "We are constantly learning from our founders to adapt to their evolving capital needs and the strategy to split our fund into two schemes with different propositions arises from the fact that startups need innovative solutions across different use cases, tenors and price points. We wanted to align our investors to these expectations and ensure that the Founder-LP fit is appropriately designed."
Founded in 2018, Alteria Capital has backed 107 venture debt deals by 2023 and has assets under management (AUM) of INR 4,350 crore across three funds.
The platform claims that within the past 15 years, it has backed more than 250 startups and has more than 180 portfolio firms.
Punit Shah, Managing Partner of Alteria Capital, added, "The Shorter Duration Scheme will focus on filling a wide gap that exists for companies that have short term cash flow mismatches within their operating cycles as well as playing a central role in providing capital to fintech companies for bolstering their on-lending needs."
