Alteria Capital announces close of Fund II at ₹1,325 crore

Our Bureau Mumbai | Updated on April 09, 2021

Company had received SEBI approval in December 2020 with a target corpus of ₹1,000 crore and a greenshoe option of ₹750 crore

Aletria Capital has achieved the first close of its second venture debt fund at ₹1,325 crore within four months of launch.

The fund target was initially set at ₹1,000 crore at the time of launch. With this closure, the venture debt firm now has an AUM of ₹2,300 crore across two venture debt funds and is the largest venture debt provider in India currently.

Alteria Capital received approvals from SEBI in December 2020 for its second venture debt fund with a target corpus of ₹1,000 crore and a greenshoe of ₹750 crore.

“There has been strong interest from domestic investors to participate in this attractive asset class resulting in oversubscription in a very short period of time,” said a press statement.

Targeting start-ups

The fund promoted by veterans Ajay Hattangdi and Vinod Murali will use the capital to back start-ups that have already raised VC funding and provide them with a range of speciality debt solutions. The fund will target start-ups across early and growth stages with cheque sizes up to ₹150 crore There will also be an allocation for structured debt products aimed at later stage companies which have a differentiated risk profile.

“We are honoured to have the confidence of our investors and be able to raise the fund in such a short period of time and that too, with the ongoing challenges of the global pandemic,” said Ajay Hattangdi, Cofounder and Managing Partner. “But we are very aware of our responsibility to deliver attractive returns to our investors which we will do by continuing to partner with high quality equity sponsors in supporting the development of companies with innovative solutions that challenge the status quo.”

Vinod Murali, Cofounder and Managing Partner said: “The Indian start-up ecosystem is emerging as a strong value creator and domestic investors have appreciated the consistent, strong returns from our first fund. We are excited to be able to support more founders who are contributing to India’s growth amidst all the current challenges and our focus continues to be umbrella sectors like consumer, technology and healthcare. This fund will also allow us to provide larger cheques to later stage start-ups through structured solutions”.

Alteria Capital has backed companies like Rebel Foods, BharatPe, Lendingkart, Zestmoney, Dunzo, Portea, Toppr, Spinny, Stanza, Vogo, Melorra, Mfine, Generico, Loadshare, LBB, Beato, Maverix, Country Delight, Clover, Happay, Cropin, Cityflo, Onco, Nua, Damensch, Bombay Shirt Company, Sunstone Eduversity, Faces Cosmetics and Universal Sportsbiz.

Alteria Capital Fund II will be the largest pool of alternative debt capital available for early and growth stage start-ups in India. With its ability to recycle capital, Alteria will effectively have over ₹4,000 crore available for funding start-ups across Venture Debt and Structured Solutions.

Published on April 09, 2021

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