India-based debt firm Alteria Capital raises $185m for third fund

Alteria Capital partners (from left) Ankit Agarwal, Punit Shah, and Vinod Murali / Photo credit: Alteria Capital

India-based venture debt firm Alteria Capital has finalized the venture debt portion of its third fund at 15.5 billion rupees (US$185 million) – higher than its initial target of 10 billion rupees (US$120 million). This brings its total assets under management to US$521 million.

In addition to the venture debt portion, this latest fund also features a “shorter duration” scheme, which Alteria Capital said is the first of its kind in India. The scheme aims to cater to startups’ short-term financing needs.

On the whole, the fund aims to raise US$250 million to US$300 million across both schemes, with the shorter duration scheme expected to close by end-2024.

“The strategy to split our fund into two schemes with different propositions arises from the fact that startups need innovative solutions across different use cases, tenors, and price points,” co-founder and managing partner Vinod Murali stated.

So far, the fund has already deployed 50% of the total capital commitments in businesses like OneCard, Renee Cosmetics, and Rebel Foods. Alteria Capital will continue to invest in startups that have already raised VC funding, providing up to US$24 million per company.

See also: For this VC, Asia’s proptech sector is a good place to land

Currency converted from Indian rupees to US dollars: US$1 = 83.3 rupees.