Venture deb firm VentureSoul Partners launches Rs 600 crore debt fund

Mumbai-based venture debt firm VentureSoul Partners has announced the launch of its maiden debt fund, VentureSoul Capital Fund I, with a target corpus of up to Rs 600 crore. The firm was founded by three former HSBC bankers: Anurag Tripathi, Ashish Gala, and Kunal Wadhwa. 

The anchor investor for this fund is Micro Labs, a well-known pharmaceutical company.

The fund has also secured commitments from several prominent corporate executives (CXOs). Notable among them are E Madhusudan, founder of Kreditbee; Abhishek Khemka from Baazar Kolkata; and Ponnuswami M from Pure Chemicals group. Glen Appliances Ltd and PSN group have also made commitments.

Investing in the Series A stages

VentureSoul Partners' SEBI-registered Category II alternative investment fund will invest in companies at the Series A stage or beyond, which have demonstrated a viable revenue model.

The fund is sector-agnostic but will particularly target startups in the fintech, B2C, B2B, and SaaS segments. According to the founders, the fund aims to combine traditional banking principles with modern credit evaluation technology to offer tailor-made solutions for startups.

How will the fund impact the venture debt market?

The launch of this fund comes at a time when India's venture debt ecosystem is witnessing significant growth.

According to a report by Stride Ventures, venture debt investments in Indian startups increased by 50% in 2023, reaching $1.2 billion (Rs 9,945 crore).

The number of deals also surged, with approximately 175 companies raising venture debt across 300 rounds. The venture debt space in India has shown a compound annual growth rate (CAGR) of around 34% since 2017.

Providing growth capital to startups

VentureSoul Partners aims to differentiate itself by providing growth capital to startups while focusing on long-term partnerships. The firm plans to deliver innovative debt solutions tailored to the unique needs of companies in the new economy.

By integrating traditional banking methods with advanced credit evaluation technology, VentureSoul Partners seeks to support startups through customized financial solutions, thus contributing to the overall growth of the venture debt market in India.