Arteria Capital aims to raise up to $100 million for short-term fund

BENGALURU: Venture debt fund Alteria Capital plans to raise $80 million to $100 million for its third fund’s short-term scheme by next quarter. The initiative is aimed at increasing near-term balance sheet efficiency for startups in selected focus areas, said Vinod Murali, co-founder and managing partner of the firm. mint.

Murali said the fund will support fintech, consumer and B2B platforms, especially those with liquidity needs such as inventory build-up, accounts receivable and book debt. “By creating two debt options for founders, we want to ensure that founders can meet their short-to-medium-term needs to create strong enterprise value.”

Alteria’s third fund consists of two different schemes. One is a venture debt scheme of approximately $180 million to $200 million, and the other is a short-term scheme tailored to provide working capital solutions to startups. Arteria is currently India’s largest venture debt fund. INRDomestic capital is 425 billion.

Punit Shah, managing partner at Alteria, said: “Short-term schemes are intended to be cheaper for founders and target returns of 13-14% for LPs, so they provide two sleeves of capital. will result in different returns for investors. So there are two different schemes.” .

In 2022, Alteria announced the first close of its third venture debt fund.Currently, the funds are approximately INR150 billion. The fund has helped support early and growth stage startups and has provided specialized debt solutions up to check sizes. INR15 billion.

Murali emphasized that venture debt complements equity financing. “The fundamental risk we take with traditional venture debt is whether the startups we fund can raise another round of equity funding, if they can raise it within a reasonable period of time. , our funds are safe…therefore, it is complementary with our own capital,” he explained.

This development comes at a time when India’s startup ecosystem is experiencing a funding downturn due to macroeconomic fluctuations and widespread economic slowdown. This has made investors more cautious.

Earlier this week, Alteria invested INR FPL Technologies, the parent company of mobile-first credit card startup OneCard, has venture debt of 120 million yen.

Artelia has consistently focused on domestic consumption, with 40-45% of its portfolio in the consumer, food and beverage, and e-commerce sectors. We invest 35-40% of our investments in other areas such as fintech, logistics, B2B platforms, rural and agritech sectors.

Founded in 2017, Alteria is a pioneer in venture debt in India, having funded over 250 startups in 15 years. Its impressive portfolio includes names like Rebel Foods, Dealshare, Spinny, Mensa Brands, BharatPe, Cars24, Good Glamm Group, Niyo, Zepto, Lendingkart, Portea, and more.