(MENAFN- KNN India) New Delhi, May 2 (KNN) Anthill Ventures, a prominent venture capital firm, is preparing to unveil a USD 100 million hybrid fund targeting startups in India, a move that comes amid a surge of investor interest in the country's startup ecosystem.
This development coincides with a slowdown in the Chinese economy, potentially prompting a shift in investment focus towards India, reported Bloomberg.
According to Prasad Vanga, the founder and CEO of Anthill Ventures, the company plans to raise the USD 100 million for a hybrid fund that will provide both private credit and equity financing to Indian startups operating in sectors such as consumer experiences, wellness, and entertainment.
The fund's portfolio will comprise technology startups and consumer brands, with all investments denominated in US dollars. Initially, financing for the brands is expected to take the form of debt, with the potential for conversion into equity as these companies scale and expand.
The global private credit market, valued at USD 1.7 trillion, has emerged as a compelling alternative to traditional lending, offering investors higher returns.
India, in particular, has garnered significant attention in this space, attracting interest from global firms such as Cerberus Capital Management LP and Varde Partners LP.
For Anthill Ventures, the foray into the private credit sector presents an opportunity to support startups that are often overlooked by traditional banks.“Securing debt in India is tough as banks typically want security and do not accept startup company valuations. So that's a huge opportunity for us,” Vanga stated.
According to information on Anthill's website, Vanga has a proven track record of backing successful companies, including Tynker, a coding platform acquired by the online education giant Byju's in 2021.
(KNN Bureau)
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