Alteria Capital closes its maiden venture debt fund at Rs 960 Cr

Mumbai-based Alteria Capital has announced the final close of its maiden venture debt fund at Rs 960 crore ($140M). The investors in the fund include several large domestic banks, family offices, and development financial institutions such as IndusInd Bank, SIDBI, Azim Premji Foundation, Binny Bansal, and Kiran Reddy among others. 

Vinod Murali, Co-founder and Managing Partner at Alteria Capital, said,

"Since we have the ability to recycle capital, we will end up deploying approximately Rs 1,800 crore from this fund, and we are seeing a very strong pipeline of startups across technology, healthcare, and consumer segments to absorb this capital over the next couple of years.”

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The venture debt firm will use the capital to target startups across early and growth stages with cheque sizes ranging up to Rs 100 crore.

Since the fund’s first close in Q1 2018, it has committed Rs 615 crore of capital to startups, of which Rs 540 crore has already been deployed across 28 transactions including companies like Faasos, Lendingkart, Zestmoney, Vogo, Toppr, Raw Pressery, Universal Sportsbiz, Dunzo, Stanza Living, Portea, Fingerlix, mfine, Loadshare, Country Delight, Spinny, Limetray, and Vinculum. 

Alteria said in an official statement that it represents the single largest commitment for SIDBI under the Startup Fund of Funds programme of the Government of India with an allocation of Rs 157.5 crore.

The fund, promoted by veterans Ajay Hattangdi and Vinod Murali, also launched its “Activate” platform last year through which Alteria leverages its network to connect portfolio companies with large corporates, investors, and emerging technologies with the objective of unlocking business and investment opportunities. The Activate team has made over 100 connections for Alteria’s portfolio companies resulting in several successful outcomes.

"At Alteria Capital, we are borrowing from our experience of over a decade in building the venture debt business to reinvent the model," said Ajay Hattangdi, Co-founder and Managing Partner, Alteria Capital. 

With a team of 11 members, Alteria Capital in the past has invested in some of India’s most exciting and innovative emerging companies including Byju’s, Swiggy, OYO Rooms, Myntra, and Firstcry among others.

In June 2019, the fund infused Rs 80 crore debt capital in digital lender Lendingkart, which has been described as the single largest investment by the firm.

(Edited by Megha Reddy)

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