Alteria Capital, a venture debt firm, has announced that the International Finance Corporation (IFC) has made its maiden investment in the Indian innovative SME credit segment through an anchor investment in Alteria’s Shorter Duration Scheme (SDS).
The fund, distinguished from the core venture debt offering, plans to support sustainable business models that generate long-term value while fostering entrepreneurship in underserved segments.
The SDS fund will target short-term liquidity requirements to enhance balance sheet efficiency, including short-term capital necessities of licensed fintech companies, consumer brands, EV OEMS, amongst others. Portfolio companies under SDS include proptech firm Ivy Homes, financial services startup Swara Fincare, and consumer brand TEN x YOU. Licensed fintechs (NBFCs) will be the fund’s primary focus segment.
The fund expects to deploy its capital over the next three years.
“Innovative financial solutions are crucial for bridging funding gaps. Our partnership with Alteria underscores our commitment to pioneering fund managers who drive business model innovation. By addressing short-term needs, we aim to accelerate India’s tech ecosystem and economic growth,” said Wendy Werner, IFC’s Country Head for India and Maldives.
“We are witnessing a significant demand for venture debt evidenced by the fact that we funded USD 200 million of debt to Indian start-ups in 2024, but there is also a meaningful gap in short-term financing options for start-ups especially in financial services and consumer offerings,” Vinod Murali, Co-founder & Managing Partner, Alteria Capital, said.
Established in 2017, Alteria Capital is a venture debt fund focused on innovative startups backed by strong VC sponsors. The company has an asset under management of ₹4,500 crore and provides innovative debt financing solutions to start-ups.
