Alteria Capital in talks with investors for raising up to Rs 3500 crore for third fund

24 Aug 2022 , 09:23 AM

According to internal documents viewed by Reuters, Alteria Capital Advisors of India is in discussions with investors to raise up to 35 billion rupees ($438 million) for its third debt fund.

The conversations, which take place less than a year after Alteria raised 18.2 billion rupees for its second fund, highlight the enormous interest in venture debt as Indian entrepreneurs continue to attract billions of dollars despite the country’s economic difficulties.

According to Alteria’s presentation deck, which was seen by Reuters, the company plans to raise up to 20 billion rupees for its primary venture debt fund, which will be a part of a dual-fund structure, including overallotment.

The second fund, termed “Scheme 2,” will have an overallotment corpus of up to 15 billion rupees.  Startups will receive working financing from the secondary fund pool.

Venture debt, which has become a popular financial asset class for big investors, has been raised by hundreds of businesses in recent years. Instead of trimming stakes, as is the case with equity funding, venture debt enables founders to raise money.

Trifecta Capital and Stride Ventures, two venture debt lenders, raised 15 and 16 billion rupees in funding this year, respectively.