Mumbai-based venture debt firm Alteria Capital has achieved a significant milestone with the final close of its third fund at Rs 1,550 crore.
The Alteria Capital Fund III Venture Debt Scheme, initially targeted at Rs 1,000 crore, witnessed overwhelming demand, as noted in a statement by the firm.
Twin Scheme Strategy
Alteria Capital’s third fund employs a twin scheme strategy, encompassing both a venture debt scheme and a shorter duration scheme tailored to meet the diverse working capital needs of startups.
While the venture debt scheme concluded at $195 million (Rs 1,550 crore), the shorter duration scheme, currently in the subscription phase, anticipates raising around $105 million.
Enhanced Flexibility and Efficiency
Vinod Murali, Co-founder and Managing Partner of Alteria Capital, elucidated that the shorter duration scheme, a novel addition to the fund, targets transactions with a tenor of less than 18 months.
This strategic move aims to enhance balance sheet efficiency, particularly beneficial for startups requiring financing for inventory investments or receivables build-up, and providing impetus to fintechs in building their loan books.
Investment Strategy and Portfolio Deployment
The Alteria Capital Fund III-Shorter Duration Scheme boasts a timeline of three-and-a-half years for investors to recoup their capital, with an additional two-and-a-half years allocated for monetizing any equity upside.
Currently, the scheme is poised to reach its final close by the end of 2024, catering to portfolio companies with cheque sizes ranging between Rs 3 crore and Rs 100 crore.
Strategic Deployment and Portfolio Companies
Since its inception, Alteria Capital has deployed 50% of the total capital from its Rs 1,550 crore venture debt scheme across over 70 startups.
Notable portfolio companies include One Card, Renee Cosmetics, Samunnati, Bliss Club, Rebel Foods, Giva, Lead School, and Bluestone, among others.
Continued Support and Investment Focus
The third venture debt fund, primarily denominated in rupees, maintains an average cheque size of Rs 200 crore. Notably, nearly 50% of the fund’s corpus originated from existing investors,
demonstrating continued confidence and support in Alteria Capital’s investment strategy. The firm remains committed to backing startups across various sectors,
ncluding consumer brands, ecommerce, fintech, logistics, business-to-business platforms, rural and agritech, healthcare, climate tech, Gen AI, and spacetech.
Conclusion
Founded in 2018, Alteria Capital has rapidly emerged as a prominent player in the venture debt landscape, with assets under management (AUM) totaling Rs 4,350 crore across three funds.
With a robust track record of backing 107 venture debt deals in 2023 alone, Alteria Capital continues to play a pivotal role in nurturing the growth and innovation of India’s startup ecosystem.
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