Alteria Capital has successfully concluded the final close of its Fund III venture debt scheme, raising USD 195 million or INR 19.5 crore in response to the high demand from startups in the fintech, consumer, and electric mobility sectors. In addition, the company has launched a new “shorter duration scheme” that is now open for subscription, with the total size of Fund III expected to reach USD 250-300 million by the end of 2024.

The Alteria Capital Fund III Venture Debt Scheme, which had a target size of Rs 1,000 crore with a green shoe option, was oversubscribed, with over half of the fund contributed by existing investors. The use cases of venture debt funds vary with each startup; some raise capital for their runway, while others do so for short-term needs such as working capital and expenses. As a result, in response to these varying needs, the company has launched a new shorter-duration scheme that caters to short-term needs exclusively, regardless of sector.

Alteria Capital’s Fund III will back approximately 70-100 startups, including those already covered in the two existing funds, with the debt firm managing Rs 4,350 crore worth of assets (AUM).

Since its inception in 2017 by co-founders Vinod Murali and Ajay Hattangdi, Alteria Capital has invested in 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, the company announced the final close of its second venture debt fund at Rs 1,800 crore.

Murali expressed his gratitude to the Limited Partners (LPs) for their strong support, stating that Fund III has already deployed 50% of the total capital commitments. Given the current challenging environment for raising capital for both startups and funds, the firm is humbled by the support shown by its investors.