Alteria closes India venture debt fund at $241m

The fund was launched in December 2020 and achieved a first close of INR13.2 billion in April.

It is being touted as the largest pool of debt capital available for start-ups in India. Earlier this year, Trifecta Capital closed its second fund at about $140 million, more than doubling the size of its predecessor.

Alteria's LP base includes more than 200 domestic companies, family offices, and high net worth individual, as well as VC investors and start-up founders. The firm raised INR9.6 billion in 2019 for its debut vehicle from the likes of IndusInd Bank and Small Industries Development Bank of India.

Fund II will write checks of up to INR1.5 billion for start-ups across the early and growth stages. Later stage companies will have access to structured debt products. The strategy is to attract founders who have already received some VC funding with a further funding option that is less dilutionary on equity and that can be mobilized with more flexibility when needed.

Alteria was founded in 2017 by Vinod Murali and Ajay Hattangdi, who began experimenting with venture debt in a non-fund structure as early as 2008 under the name SVB India Finance. Last year, they engaged two new partners, Ankit Agarwal and Punit Shah, both of whom were previously at SVB India’s successor entity, InnoVen Capital.

Standout investments include financial technology providers Lendingkart and BharatPE, as well as used car marketplace Spinny. There have also been commitments to B2B services platform Infra.market and e-commerce player DealShare. BharatPE, Spinny, Infra.market, and DealShare have all raised sizeable late-stage rounds in the past three months led by Tiger Global Management.

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• Topics
• Fundraising
• GPs
• Credit/Special Situations
• Venture
• India
• Alteria Capital
• venture debt
• Structured finance