IFC joins Alteria Capital as anchor investor for its shorter duration scheme (SDS)

Alteria Capital, a venture debt manager, today announced that the International Finance Corporation (IFC) made its first investment in the Indian SME credit segment through an anchor investment in Alteria’s Shorter Duration Scheme (SDS). 

SDS will focus on short-term liquidity needs to drive balance sheet efficiency, such as short-term capital needs of licensed fintech companies, consumer brands, and EV OEMS, among others. Licensed fintechs (NBFCs) will be the primary focus segment for this proposition. 

Supporting sustainable business

With this fund, Alteria builds on its track record of backing successful startups in India, with deep expertise across fintech, consumer brands, and enablers of the Indian economy. The fund, differentiated from the core venture debt offering, aims to support sustainable business models that create long-term value while fostering entrepreneurship in underserved segments.

Alteria’s SDS has already funded companies such as Ivy Homes, Swara Fincare, Moneyview and TEN x YOU.

Leadership comments

"At Alteria Capital, we're witnessing a significant demand for venture debt evidenced by the fact that we funded $200 Mn of debt to Indian start-ups in 2024, but there is also a meaningful gap in short-term financing options for high-growth start-ups especially in financial services and consumer offerings," said Vinod Murali, Co-founder & Managing Partner, Alteria Capital.

“These companies need bespoke offerings from trusted partners, which is the space Alteria is filling with SDS, and we are pleased to welcome IFC as an anchor investor.” 

"For six decades, IFC has been at the forefront of impact investing in emerging markets. Innovative financial solutions are crucial for bridging funding gaps," said Wendy Werner, Country Head for India and Maldives, IFC.

"Our partnership with Alteria Capital is emblematic of our continued commitment to support pioneering fund managers, who drive business model innovation and entrepreneurship. By addressing short-term financing needs and signalling market confidence, we aim to help support India’s start-up and disruptive technology ecosystem and accelerate economic growth." 

This strategic partnership combines IFC's extensive global expertise in impact investing with Alteria's deep market knowledge and robust investment framework.

The fund expects to deploy capital over the next three years across India's most promising new economy companies. 

Alteria Capital is India's largest venture debt fund with AUM of Rs 4500 crore, providing innovative debt financing solutions to high-growth startups. Alteria’s portfolio includes Indian startups like Spinny, Ola Electric, One Card, Rebel Foods, Ather, Bluestone, Jupiter, Fibe (Early Salary), Giva and Sarvagram.