SUMMARY
The company plans to raise $100 Mn for a hybrid private credit and equity fund
The fund’s portfolio will comprise both technology startups and consumer brands, all denominated in US dollars
Anthill Ventures sees its entry into the private credit sector as a chance to back startups often neglected by traditional banks
Anthill Ventures, an investment and scaling platform for early stage startups, is planning to launch a hybrid fund targeting the startup sector amid a rise in investor interest in India.
As per Bloomberg’s report, Anthill’s founder and CEO, Prasad Vanga, said that the company plans to raise $100 Mn for a hybrid private credit and equity fund, which aims to support Indian startups specialising in consumer experiences, wellness and entertainment.
Vanga added that the fund’s portfolio will comprise both technology startups and consumer brands, all denominated in US dollars.
As per the report, the financing for these brands is anticipated to begin as debt, with the possibility of conversion into equity as the companies grow.
The global private credit market, valued at $1.7 Tn, has emerged as a significant alternative to traditional lending, offering investors potentially higher returns. India, in particular, has attracted significant attention in this space, drawing interest from global firms like Cerberus Capital Management LP and Varde Partners LP, the report added.
Anthill Ventures sees its entry into the private credit sector as a chance to back startups often neglected by traditional banks.
“Securing debt in India is tough as banks typically want security and don’t accept startup company valuations. So that’s a huge opportunity for us,” Vanga told Bloomberg.
Anthill Ventures’ portfolio includes companies such as Ketto, 91Springboard, Thrillophilia, Alixir, SheildSquare and Zypp Electric, among others.
This development comes just a month after Anthill Ventures participated in a funding round for Woodsmen Mountain Whiskey, an alcoholic beverage startup.
Besides, in 2020, Anthill Ventures launched its consumer brand accelerator Urban-i, shortlisting seven startups focused on personal care, fashion, food and beverages, nutrition, and more. The selected startups include Herringbone & Sui, Smitch, Living Food Company, RE/MIND, Pulp, Tasty Tales, and SoulFuel.
