Venture Capital

Venture debt co Alteria eyes Rs 1,000cr fund


Chennai: Venture debt firm Alteria Capital is raising its second venture debt fund — Fund II — of Rs 1,000 crore with an overallotment (greenshoe) option of Rs 750 crore. The firm has got markets regulator Sebi’s approval, and expects the fund’s first close to be in the first half of 2021 as it has already seen a “high level of interest”.
It will be used to back startups across early and growth stages with cheque sizes of up to Rs 150 crore. There will also be an allocation for structured debt products aimed at later-stage companies that have a differentiated risk profile. “We have made three quarterly distributions even during Covid, which has been well received by investors in our first fund, many of whom have already conveyed their keenness to participate in the second fund as well,” Vinod Murali, co-founder and managing partner of Alteria Capital, said.
Venture debt has gained relevance after the pandemic and is in demand as entrepreneurs seek buffer capital during the crisis and valuations do not meet expectations in equity funding. “Founders have also shown a tendency to have more control on fundraising timelines and debt can give them additional runway with minimal dilution,” Murali said.
Alteria Capital’s Fund I, which has a corpus of Rs 962 crore, has backed companies like Rebel Foods, Lendingkart, Zestmoney, Dunzo, Portea, Toppr, and others.
Alteria is also expanding its team by bringing in two venture debt professionals Ankit Agarwal and Punit Shah as partners.
With its ability to recycle capital, Alteria believes it will effectively have over Rs 4,000 crore available for funding startups across venture debt and other structured solutions.


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