Alteria Capital Secures $195 Million for Third Venture Debt Fund

Alteria Capital, a Mumbai-based venture debt firm, has successfully closed its third fund at a staggering Rs 1,550 crore ($195 million based on an exchange rate of Rs 80 per dollar). This achievement surpasses the initial target of Rs 1,000 crore, demonstrating strong investor confidence in Alteria’s strategy.

Dual-Track Approach Caters to Diverse Startup Needs

For this third fund, Alteria Capital has implemented a unique “twin scheme strategy.” This strategy consists of two distinct funding options: a venture debt scheme and a shorter-duration scheme. The venture debt scheme caters to startups seeking long-term financing with deal tenors of up to 36 months. The average cheque size for this scheme is Rs 200 crore.

The shorter duration scheme, currently under subscription, addresses the working capital needs of startups. This scheme focuses on investments with a lifespan of less than 18 months and is expected to raise an additional $105 million.

“The shorter duration scheme is a core component of our third fund,” explained Vinod Murali, Co-founder and Managing Partner at Alteria Capital. “This scheme will specifically target investments that support areas like inventory management and receivables growth. It will also be valuable for fintech companies looking to build their loan portfolios.”

Early Success and Future Plans

Alteria Capital has already deployed half of the capital from the venture debt scheme across over 70 startups. The firm’s portfolio includes companies like OneCard, Renee Cosmetics, Samunnati, and several others. Notably, nearly 50% of the fund’s capital came from existing investors, showcasing their continued trust in Alteria’s vision.

Looking forward, Alteria Capital plans to maintain its focus on backing startups in various sectors, including consumer brands, e-commerce, fintech, logistics, and healthcare. They are also open to evaluating promising companies in emerging fields like Gen AI and space technology.

Founded in 2018, Alteria Capital has established itself as a prominent player in the venture debt landscape. With a total of Rs 4,350 crore ($54.38 million) in assets under management across its three funds, the firm has facilitated 107 venture debt deals in 2023 alone, demonstrating its commitment to empowering the growth of innovative startups.