Alteria Capital Thursday said it has made the final close of third venture debt fund with a capital raise of Rs 1,550 crore (around $186 million). The final close came nearly one-and-a-half years after the first close at Rs 1,000 crore.
The venture debt firm had set a target of Rs 1,000 crore with a green shoe option. It said in a release that the green shoe option has been significantly over-subscribed with more than half the fund contributed by existing investors. It also added that it has raised almost all its capital from domestic investors.
The fund will invest in venture capital-backed startups. It is looking to invest up to Rs 200 crore per company.
Alteria Capital has adopted a twin scheme strategy as part of its third fund, which includes a venture debt scheme and a shorter duration scheme that has been opened for subscription with a final close expected by the end of 2024.
In total, the third fund is expected to raise $250-300 million across both schemes.
“Our Shorter Duration Scheme is the first of its kind in India to cater to short-term financing needs of startups,” said Ankit Agarwal, managing partner, Alteria Capital.
The fund has already deployed 50% of the total capital commitments. The fund’s portfolio includes OneCard, Renee Cosmetics, Samunnati, Bliss Club, Rebel Foods, Giva, Lead School, Kissht, Captain Fresh, Traya, Bluestone and Ather.
“This fund will be a natural extension of our core capability of providing alternative capital to the venture ecosystem, something we have been doing for more than a decade in India,” said Punit Shah, managing partner, Alteria Capital. “The predictable returns from our earlier funds have been appreciated by our investors who have reposed their trust in us consistently.”
“The Shorter Duration Scheme will focus on filling a wide gap that exists for companies that have short-term cash flow mismatches within their operating cycles as well as playing a central role in providing capital to fintech companies for bolstering their on-lending needs,” Shah added.
At present, Alteria has an AUM (asset under management) of Rs 4,350 crore with over 180 portfolio companies, including Spinny, Mensa Brands, Country Delight, Dailyhunt, Good Glamm Group, and Infra.market.
