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Venture debt firm Alteria Capital has announced the final close of its second venture debt fund at a corpus of ₹1,800 crore, almost double of its base target of ₹1,000 crore along with a greenshoe option of ₹750 crore.
The investor mix includes domestic institutions, large family offices as well as senior corporate professionals and VCs/founders from the start-up ecosystem. The investment firm had received approvals for the fundraise from SEBI in December 2020, following which it had closed the first round of fundraise in April 2021 at ₹1,325 crore. The latest funding makes Alteria Capital Fund II the largest pool of alternative debt capital available for early and growth-stage start-ups in India.
Vinod Murali, Co-founder and Managing Partner, Alteria Capital told BusinessLine, “We had raised our first fund of around ₹960 crore about three years ago. It took us 18-20 months to do that. This time it took half the time to raise double the fund.”
Structured debt products
Promoted by veterans Murali and Ajay Hattangdi, the fund will target start-ups across early and growth stages with cheque sizes up to ₹200 crore. There will also be an allocation for structured debt products aimed at later stage companies which have a differentiated risk profile.
Alteria has already invested about 35 per cent of its second fund across 20 start-ups. In the nine months of 2021, they have crossed ₹1,000 crore worth of deals and plan to deploy around $175-200 million across both its funds in 2021. Some of the larger portfolio companies to have benefited from this are Rebel Foods, Bharat Pe, Infra Market, Spinny, Cars 24, Mensa Brands, Dealshare, Zest Money, Dunzo, Toppr (Byju’s) and Stanza Living. “We have about 50 portfolio companies, we have done over 100 deals with them. For the later stage companies we plan to enter, the offering is slightly different. We offer cheque sizes of $15-20 million and bring in other partners along. This reduces the cost of capital for the unicorns. We have already done two such deals which are yet to get announced,” Murali said.
Also read: Alteria Capital to raise second VC fund of ₹1,000 cr, greenshoe ₹750 cr
Alteria Capital generally writes its cheques for a tenure of two to three years at 14-15 per cent interest rates. It now has an AUM of ₹2,750 crore across both the funds. With the latest close and its ability to recycle capital, Alteria will have over ₹5,000 crore available for funding start-ups across venture debt and structured solutions.
Alteria Capital has backed companies like Rebel Foods, BharatPe, Infra Market, Spinny, Cars 24, Mensa Brands, Dealshare, Chaayos, Jumbotail, Zestmoney, Dunzo, Lendingkart, Exotel, Portea, Toppr, Pratilipi, Stanza, Vogo, Melorra, Mfine, Generico, Alpha Vector, Moneyview, Loadshare, Oye Rickshaw, LBB, Beato, Maverix, Country Delight, Clover, Happay, Cropin, Cityflo, Onco, Nua, Damensch, Ayu Health, Bombay Shirt Company, Sunstone Eduversity, Faces Cosmetics and Universal Sportsbiz.