Alteria Capital makes first close of Fund II at Rs 1,325 crore

• Alteria Capital has announced the close of its second fund with INR1325 crores funding.
• The venture firm will strategically use the fund to back more startups through its debt solutions.

• It has assets under management of Rs 2,300 crore across two venture debt funds, making it the largest venture debt provider in India currently.

Mumbai- based venture capital firm Alteria Capital has announced the close of its second fund with INR1325 crores funding.

It has been observed that it's emerged as one of the fastest rupees raises in recent time and how domestic family houses and investment institutions are interested in actively investing in the venture ecosystem through debt and equity.

According to Vinod Murali, founder and managing partner of Alteria Capital, “The fund, which is targeting a final close at Rs 1,500-Rs 1,700 crores by September, will look to back more startups through its debt solutions.”

The securities and exchange board of India has approved the transaction in December last year for its second venture debt fund with a target corpus of Rs 1,000 crore and a greenshoe option of Rs 750 crore.

Set up in 2018 by the leadership team at Silicon Valley Bank's lending business in India. Currently, it is India's largest venture firm. The company aims to back up startups by providing at a crucial stage when they need the fund most.

Alteria Capital portfolio includes Rebel Foods, BharatPe, Lendingkart, ZestMoney, Dunzo, Portea, Toppr, Spinny, Stanza, Vogo, Melorra, Mfine, Generico, Loadshare, LBB, Beato, Maverix, Country Delight, Clover, Happay, Cropin, Cityflo, Onco, Nua, Damensch, Bombay Shirt Company, Sunstone Eduversity, Faces Cosmetics and Universal Sportsbiz, among others.

The venture firm has assets under the management of Rs 2,300 crore across two venture debt funds, making it the largest venture debt provider in India currently.

“There has been strong interest from domestic investors to participate in this attractive asset class, resulting in oversubscription in a very short period,” Murali said.

Also Read: Oye Rickshaw receives fresh funding of Rs24 crore from Alteria Capital for expansion of the operation

Venture capital in India is growing at a very good rate as domestic families and institutions have been amplifying their will of investment funds in startups through debt and equity.

Unconventionally banks prevent themselves from lending funds to loss-making startups due to fear of NPA have a prerequisite for collaterals, venture debt is most sought after by the startup ecosystem. These loans generally come with a tenure of 24 to 36 months, making it easier for the fund to rotate capital more efficiently, increasing its lending capacity.

The competition in the venture firm segment is also increasing earlier startups used to acquire funds from families and friends but as the demand for funds went up that made some private leaders set up venture firms to take a profit advantage by investing funds into potential startups. Alteria Capital competes with the likes of InnoVen Capital, Trifecta Capital, Blacksoil among others.

Follow IndianStartupNews on Facebook, Instagram, Twitter for the latest updates from the startup ecosystem.