Mumbai-based venture debt firm Alteria Capital announces final close of Fund III at Rs 1,550Cr

Mumbai-based venture debt firm Alteria Capital has closed its third fund at Rs 1,550 crore, surpassing its initial target of Rs 1,000 crore. 

Alteria, which is known for its investments in startups like Rebel Foods and Ather, aims to continue its support across diverse sectors, including consumer brands, fintech, and emerging areas like Gen AI and spacetech.

Deployment and impact

The firm has already deployed 50% of the fund's capital to ventures such as OneCard and Renee Cosmetics. By December 2026, it aims to back approximately 100-125 companies.

In addition to the venture debt fund, Alteria has introduced a shorter-duration scheme, targeting an additional $105 million by the end of 2024. The scheme aims to address the short-term capital needs of startups, offering more efficient balance sheet solutions with lower risk and returns compared to traditional venture debt. 

The initiative focuses on the consumer and fintech sectors, where rapid growth often leads to significant working capital requirements.

The twin scheme strategy

Alteria's innovative twin scheme strategy, comprising both venture debt and shorter duration schemes, is designed to cater to the varied capital needs of Indian founders. Notably, the approach aligns investor expectations with the dynamic requirements of startups, ensuring a tailored fit for both parties.

RailYatri, Vidyut, VerSe Innovation, OneCard, BluSmart Mobility, Rebel Foods, BlueStone, and Ather Energy are some of the notable startups it has backed.