ValuAble launches $100 mn venture debt fund for Indian startups

Indian startup ecosystem: Venture debt fund, ValuAble, with an initial corpus of Rs 850 crore (approximately $100 million), has been launched by Rahul Gupta and Siba Panda, targeting early and growth-stage startups. The fund is set to make over 30 investments with an average size of $3 million. This Category II Alternative Investment Fund (AIF) is sector-agnostic and intends to provide debt in the form of working capital, term loans, or a blend of both, with a repayment period spanning 18 to 24 months within a seven-year fund cycle.

Rahul Gupta, a banking professional, has the experience of overseeing 12 Limited Partner investments, facilitating over $2 billion in financing, and leading the Carbon Disclosure Project Taskforce. Siba Panda, formerly with Stride Ventures, has been involved in venture debt, fund management, and regulatory matters for more than two decades.

Aims at investing in sustainable development-focused projects

ValuAble aims to invest in startups that align with the United Nations' Sustainable Development Goals, focusing on sectors like fintech, edtech, agritech, cleantech, consumer tech, and health tech. Notably, the fund will steer clear of investing in sectors such as alcohol, tobacco, gambling, and illegal industrial businesses.

According to media reports, the fund’s investment philosophy revolves around sustainability, returns, and sustenance, with the ultimate goal of achieving an annual return of 18 per cent. Currently, the fund has a robust deal pipeline comprising more than 15 startups at various stages of development.

Venture debt funding is on the rise in India, with an expected growth trajectory that could see investments surge from $6 billion to $7 billion by 2030. ValuAble's launch comes at a time when venture debt is gaining prominence in the Indian startup ecosystem, offering an attractive option for raising capital amidst macroeconomic challenges and funding downturns.