IFC invests in Alteria Capital’s Shorter Duration Scheme for startups

Venture debt firm Alteria Capital has secured the International Finance Corporation (IFC) as an anchor investor for its Shorter Duration Scheme (SDS). This marks IFC’s first-ever investment in the global SME credit segment.

While the exact size of SDS is not disclosed, Alteria’s total Fund III target is $250-$300 million, with $186 million already closed for its Venture Debt Scheme.

Launched in March 2023, SDS is part of Alteria’s Fund III. It focuses on providing short-term capital (less than 18 months) to startups in sectors like fintech, consumer, and electric vehicles (EV). 

While the fund’s final closure is pending, it has already invested in startups like Ivy Homes, Swara Fincare, Moneyview, and TEN x YOU. Alteria aims to fund 50 startups through SDS over the next 2.5 years.

Alteria’s managing partner Vinod Murali stated that the firm is in talks with foreign and domestic investors to raise additional funds. 

IFC’s Wendy Werner emphasized that innovative financial solutions help bridge funding gaps and boost India’s startup ecosystem.

To date, Alteria has invested over $800 million in Indian startups, backing companies like Spinny, Ola Electric, One Card, Ather, and Jupiter.