Last July, in the middle of the pandemic, Vinod Murali and Ajay Hattangdi began working on their second fund. By September, the co-founders of Alteria Capital had applied to the markets regulator to raise their second venture capital (VC) debt fund. It is looking to raise ₹1,000 crore with a green shoe option—a top-up that one can do to their base amount—of ₹750 crore.
A venture debt fund lends money to startups. When a startup is raising equity capital, the founders usually raise a component of debt alongside the equity, which is known as venture debt. Traditional sources of capital like banks are wary about lending to loss-making companies, and that’s where VC debt funds step in. So do a lot of fintech lending firms, but traditional VC debt funds lead the race when it comes to financing new-age companies. While an equity investor stays put for four to eight years, debt providers usually have a tenure of 24 to 36 months.
Venture debt is almost 12 years old in India, and both Murali and Hattangdi have managed to ride the cycle from its early days. Hattangdi had joined Silicon Valley Bank (SVB) India Finance Ltd in 2007 and drew up its business plan. Later, he applied to the regulators to get a non-banking finance (NBFC) licence to launch the venture debt vertical. Murali and Hattangdi looked after the business from 2008.
A LOT HAS HAPPENED SINCE THEN
This story is from the January 29, 2021 edition of Forbes India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the January 29, 2021 edition of Forbes India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Home-Cooked Meal Is Now Greatly Valued
The pandemic has also brought with it an improved focus on hygiene, use of technology in dining, rise of cloud kitchens and resurgence in popularity of Indian ingredients
Paytm 3.0 - Reaching Near Breakeven In Two Years
As of 2020, Vijay Shekhar Sharma’s super app for financial services had run up losses in thousands of crores. Now, as digital payments gets yet another boost courtesy Covid-19, he’s hopeful of reaching near breakeven in two years
THE PANDEMIC HAS CAUSED WOMEN GREATER LABOUR PAIN
Covid-19 has shown that women are more likely to face the brunt of job losses than men, and find fewer opportunities when they want to resume. That apart, several have to deal with increased hours of unpaid work at home and even domestic abuse
LEADERSHIP WILL BE ABOUT SEEING THE BIGGER PICTURE
Leaders must not only guard their teams first during a crisis, but also deal with stakeholders with respect and dignity. And apart from pursuing business goals, they should remain committed to our planet and the environment
PHILANTHROPY SHOULD BE HUMBLE, BUT NOT MODEST
Apart from building a flexible and resilient framework for the future, philanthropists, civil society and the government must work in tandem so that every rupee is absorbed on the ground
INTEGRATED HEALTH CARE, TECH WILL DISRUPT SECTOR
While clinical research will get a boost, having a skilled workforce and public spending on health care will be challenges in the near term
DIGITALISATION WILL HELP IN VALUE CREATION
As the pandemic brings technology and innovation to the core of business and daily life, the next decade will see about 150 million digital-first families in India
Industry 4.0: Climate Revolution?
Augmenting sustainability alongside digital capabilities is an economic, competitive and global opportunity for India’s businesses, but regulations need to reflect intent
EV Dream Still Miles Away
Electric vehicles have remained a buzzword in India for years. But not much has moved on ground due to high upfront costs, range anxiety and charging infrastructure
Living Waters
A virus has caused us to scramble for oxygen but our chokehold on the environment is slowly strangling the very waters that breathe life into us. The virus is a timely reminder: We are merely consumers, not producers of life’s breath on this planet
