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India’s Alteria Capital in talks to raise up to $438 million for third fund: sources

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India’s Alteria Capital Advisors is in talks with buyers to lift as much as 35 billion rupees ($438 million) for its third debt fund, in response to inner paperwork reviewed by Reuters.

The discussions, which come lower than a 12 months after
Alteria raised 18.2 billion rupees for its second fund, underscore the large curiosity in enterprise debt as Indian startups proceed to lift billions of {dollars} regardless of financial headwinds.

Alteria is aiming to lift as much as 20 billion rupees, together with overallotment, for its major enterprise debt fund that will likely be a part of a dual-fund construction, in response to its pitch deck seen by Reuters.

The second fund, dubbed “Scheme 2”, may have a corpus of as much as 15 billion rupees, together with overallotment. The secondary pool of cash will likely be used to offer working capital to startups.

Kotak Mahindra Financial institution’s wealth administration division, which backed Alteria’s second fund, and

are in late levels of evaluating investments within the newest fund, in response to a supply immediately concerned within the discussions.

Alteria and Kotak Wealth didn’t reply to Reuters’ requests for remark. IIFL Wealth declined to remark.

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Over the previous couple of years, lots of of startups have raised enterprise debt, which has emerged as a horny funding asset class for giant buyers. Enterprise debt permits founders to lift capital with out paring stakes, as is the case in fairness financing.

This 12 months, enterprise debt lenders Trifecta Capital and Stride Ventures raised 15 billion rupees and about 16 billion rupees, respectively.

Alteria, counted among the many prime three enterprise debt companies in India, boasts of 28 billion rupees in belongings below administration and a portfolio that features at the very least eight startups valued at $1 billion or above.

The Mumbai-based agency was began by former executives of Temasek-backed InnoVen Capital in 2017.

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