VentureSoul Partners, a Mumbai-based venture debt company, has announced the launch its first debt fund, VentureSoul Capital Fund I. The fund’s target corpus is up to Rs 600 billion. The firm was founded in 2003 by three former HSBC Bankers: AnuragTripathi, AshishGala, and KunalWadhwa.
Micro Labs is the anchor investor in this fund, a well known pharmaceutical company.
The fund has also received commitments from a number of prominent corporate executives. Among them are E Madhusudan from Kreditbee, Abhishek Khemka of Baazar Kolkata and Ponnuswami from Pure Chemicals. Glen Appliances Ltd. and PSN Group have also committed.
Investing at the Series A stage
VentureSoul Partners’ SEBI-registered Alternative Investment Fund Category II will invest in companies that have reached the Series A stage and beyond, as long as they have a viable revenue model.
The fund is not sector-specific, but will target startups in the fintech and B2C, as well as B2B and SaaS segments. According to the fund’s founders, it aims to combine traditional bank principles with modern credit assessment technology to offer tailored solutions for startups.
How will the fund affect the venture debt market
The launch of the fund coincides with a period of significant growth in India’s venture-debt ecosystem.
According to a Stride Ventures report, venture debt investments for Indian startups will increase by 50% by 2023, and reach $1.2 billion (9,945 crore rupees).
Around 175 companies raised venture debt in 300 rounds. Since 2017, the venture debt market in India has grown at a CAGR of 34%.
Growth capital for startups
VentureSoul Partners wants to distinguish itself by offering growth capital to startup companies while focusing on partnerships over the long term. The firm intends to provide innovative debt solutions tailored for the unique needs of businesses in the new economy.
VentureSoul Partners aims to support startups with customized financial solutions by integrating traditional banking methods and advanced credit evaluation technologies. This will contribute to the growth of the venture loan market in India.