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Alteria Capital on Monday announced the first close of its third fund at Rs 1,000 crore. The third venture debt fund—Alteria Capital Fund 3 Scheme A—will provide startups with a range of speciality debt solutions.

The fund will target Indian startups across early and growth stages with cheque sizes up to Rs 150 crore. It will also add a separate scheme within the fund to provide working capital solutions to startups.

In Q2 2022, Alteria Capital received approvals from the Securities and Exchange Board of India (SEBI) to close its third venture debt fund with a target corpus of Rs 1,000 crore and a greenshoe of Rs 1,000 crore.

With an AUM of Rs 3,800 crore across three funds, the venture capital says it manages one of the largest pools of capital for venture debt for Indian startups, at present.

Punit Shah, Managing Partner, Alteria Capital, said, “For the venture debt asset class, India is a relatively younger market compared to its global peers, which reflects a significant opportunity for raising and deploying capital. With the third fund, we hope to play a meaningful role in bridging this gap over the next few years.”

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Vinod Murali, Co-founder and Managing Partner, Alteria Capital, said, “This is our third fund in five years, which signals the strong momentum in the venture debt industry as a growing asset class in India. Consistent, stable returns over the years with strong credit risk performance, and upside potential from equity kickers have proven to be a healthy combination for investors.“ 

“We have witnessed the venture debt asset class grow over 20X in the last 10 years across multiple cycles, and we feel humbled to have played a meaningful role in its evolution. We are grateful to all our investors and founders who continue to trust us in channelising large pools of domestic capital towards fuelling disruptive startups in our country,“ said Managing Partner Ankit Agarwal.

Alteria has over 100 portfolio companies, including Rebel Foods, Spinny, Mensa Brands, Dealshare, Good Glamm Group, Infra.market, BharatPe, Dunzo, Cars24, Niyo, EarlySalary, Zepto, Chaayos, Wow Sciences, Medibuddy, Sunstone Eduversity, Cropin, and many more.