Debt fund Alteria Capital raises Rs 100 crore from SIDBI

Alteria Capital, a venture debt firm, has closed second round in Fund I and raised Rs 100 crore from Small Industries Development Bank of India (SIDBI).

The development comes within two months after the venture debt firm raised Rs 356 crore in the first round of its maiden Fund I in March this year. It received investments from institutional investors such as IndusInd Bank and from anchor investors. 

Alteria Capital, set up by Ajay Hattangadi and Vinod Murli, former executives of Temasek-backed Innoven Capital, received approval from the Securities and Exchange Board of India to float a Rs 1,000 crore venture debt fund last October.

The fund is targeting a total corpus of Rs 800 crore with a green shoe option of another Rs 200 crore. It expects to raise the entire sum by the second half of this year.

Alteria Capital plans to invest between Rs 2 and 100 crore in debt financing for startups backed by venture capital players at different growth stages. The debt fund is planning to deploy Rs 300-400 crore in 2018 and will invest around Rs 2,000 crore in startups over the next four years.  

It has so far invested in a fashion start-up Universal Sportsbiz Pvt. Ltd and food start-up Fingerlix. The fund also aims to invest in start-ups across early and growth stages in consumer services, technology, healthcare, education and logistics.

Debt funds eye Indian ecosystem

In the past few years, many debt firms have raised thousands of crores and invested hundreds of crore rupees in the startup ecosystem in India.

Last year, venture debt firm InnoVen Capital India deployed $75 million in the startup ecosystem, through debt financing. Innoven Capital invested over 40 per cent of the $75 million in growth stage companies such as OYO Rooms, Swiggy, Capillary Technologies, RentoMojo and Belong.

Trifecta Capital is another debt fund which has been increasingly investing in venture debt funds. It has 13 insurance companies and several family offices as investors in its debut fund.

BigBasket is one of the many portfolio companies of the venture debt fund. It has so far raised over Rs 50 crore in the online grocery delivery startup.

The development was first reported by Mint.