Alteria Capital Secures IFC as Anchor Investor for Shorter Duration Scheme

Alteria Capital, a venture debt firm, has successfully engaged the International Finance Corporation (IFC) as a key anchor investor for its Shorter Duration Scheme (SDS). This venture represents the first investment from IFC in the international SME credit market.

While the specific size of the SDS has not been made public, it is part of Alteria’s broader Fund III, which aims for a total target of $250-$300 million. Out of this, $186 million has already been secured for the Venture Debt Scheme.

Focus of the Shorter Duration Scheme

Inaugurated in March 2023, the SDS is designed to provide short-term funding for startups, specifically those needing capital for less than 18 months. The sectors that SDS focuses on include fintech, consumer goods, and electric vehicles (EV).

Investments and Future Plans

Although the final closure of the fund has yet to be reached, investments have already been made in several startups, including Ivy Homes, Swara Fincare, Moneyview, and TEN x YOU. Alteria has a goal of financing 50 startups via the SDS in the forthcoming 2.5 years.

Engagement with Investors

Vinod Murali, the managing partner at Alteria, has mentioned that the firm is actively communicating with both domestic and international investors to secure additional funding.

Significance of IFC’s Investment

Wendy Werner from IFC has highlighted the importance of innovative financial solutions in closing funding gaps, which ultimately enhances India’s startup ecosystem.

To date, Alteria has invested over $800 million in Indian startups, supporting renowned companies such as Spinny, Ola Electric, One Card, Ather, and Jupiter.