Alteria Capital announces final close of fund III venture debt scheme at $195 million

Ankit Agarwal, Punit Shah and Vinod Murali (L to R)

Alteria Capital announced the final close of its Fund III venture debt scheme at $195 million on the back of strong demand from startups across segments such as fintech, consumer and electric mobility.

The venture debt firm has also launched a new "shorter duration scheme", which is open for subscription and would likely take the total size of the Fund III to $250-$300 million by the end of 2024.

Alteria Capital Fund III Venture Debt Scheme had a target size of Rs 1,000 core with a green shoe option, which was over-subscribed with more than half the fund contributed by existing investors

"The use-cases of venture debt funds vary with each startups, some raise for their run way and some for short-terms needs like working capital, expenses and more...So we have launched a new shorter duration scheme which is only meant to improve short-term needs," said Vinod Murali, managing partner at Alteria Capital told Moneycontrol. 

The venture debt scheme is sector agnostic and caters to startups in consumer, rural agri, healthcare, logistics and electric mobility. The shorter duration scheme will cater specifically to fintechs, consumer and other B2B startups, Murili added.

In October 2022, the firm announced the first close of this fund at Rs 1,000 crore.

Fund III will back around 70-100 startups including those that are already covered in the two existing funds, Murali said. The VD firm manages Rs 4,350 crore worth of assets (AUM).

Founded in 2017 by Murali and Ajay Hattangdi, Alteria Capital has backed more than 100 startups, including Rebel Foods, Spinny, Mensa Brands, Dealshare, Good Glamm Group, Infra.market, BharatPe, Dunzo, Cars24, Niyo, EarlySalary, and Zepto.

In October, it announced the final close of its second venture debt fund at Rs 1,800 crore.

"The firm's Fund III has already deployed 50 percent of the total capital commitments.... It has been an extremely challenging environment to raise capital for startups as well as funds and we are humbled by the support shown by our LPs who have supported our plans strongly," said Murali.