Venture debt firm Alteria Capital Advisors is reportedly planning to raise its third debt fund with a size of $438 million or Rs 3,500 crore.
According to a report in Reuters, Alteria aims to raise up to Rs 2,000 crore which includes overallotment for its primary venture debt and that will be part of a dual fund structure as per its pitch deck.
The second fund, dubbed “Scheme 2”, will have a corpus of up to Rs 1,500 crore including overallotment. The secondary pool of money will be used to provide working capital to startups.
Alteria Capital is holding discussions with the investors for the third fund and this comes less than a year after it raised around Rs 1,800 crore.
The report noted that Kotak Mahindra Bank’s wealth management division, which backed Alteria’s second fund, and IIFL Wealth Management are in the late stages of evaluating investments in the latest fund.
This development comes amid the changing funding landscape of startups in the country where the equity route has become challenging and the venture debt channel looks more appealing.
Startups find it easier to get funds through the venture debt route than approaching the traditional banks. Unlike conventional loans, venture debt funds generally do not seek collateral or any stake while lending the money,
Recently, another venture debt firm, Stride Ventures announced the close of its second flagship fund at $200 million garnering participation from a cross-section of investors.
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