Venture Debt Firm VentureSoul Partners Introduces Rs 600 Crore Debt Fund

VentureSoul Partners, a Mumbai-based venture debt firm, has unveiled its inaugural debt fund, VentureSoul Capital Fund I, aiming to raise up to Rs 600 crore. Founded by three former HSBC bankers — Anurag Tripathi, Ashish Gala, and Kunal Wadhwa — the firm has garnered Micro Labs, a renowned pharmaceutical company, as its anchor investor. Additionally, the fund has received commitments from several distinguished corporate executives (CXOs), including notable figures such as E Madhusudan of Kreditbee, Abhishek Khemka of Baazar Kolkata, and Ponnuswami M of Pure Chemicals group. Glen Appliances Ltd and PSN group have also committed to the fund.

Related: Stride Ventures Ends Fund III with $165M, Set for Cross-Sector Deployments

VentureSoul Partners’ SEBI-registered Category II alternative investment fund is focused on investing in companies at the Series A stage or later, which exhibit a proven revenue model. The fund maintains a sector-agnostic approach but will prioritize startups operating within fintech, B2C, B2B, and SaaS sectors. According to its founders, the fund seeks to integrate conventional banking principles with advanced credit assessment technology to deliver customized solutions tailored for startups.

The introduction of this fund coincides with a period of substantial expansion in India’s venture debt market. Stride Ventures reports a 50% rise in venture debt investments in Indian startups in 2023, totaling $1.2 billion (Rs 9,945 crore). The number of transactions also increased, with about 175 companies securing venture debt through approximately 300 rounds. Since 2017, India’s venture debt sector has exhibited a compound annual growth rate (CAGR) of around 34%.

VentureSoul Partners distinguishes itself by offering growth capital to startups and emphasizing enduring partnerships. The company intends to offer creative debt solutions customized for the specific requirements of firms in the emerging economy. Through the fusion of conventional banking practices and state-of-the-art credit assessment technology, VentureSoul Partners aims to assist startups with personalized financial strategies, thereby fostering the expansion of the venture debt sector in India.

VentureSoul Partners launches its inaugural debt fund, aiming to raise up to Rs 600 crore with Micro Labs as the anchor investor and backing from distinguished CXOs. The fund invests in post-Series A companies with a proven revenue model, focusing on fintech, B2C, B2B, and SaaS sectors. VentureSoul’s fusion of traditional banking strategies and advanced credit assessment technology provides bespoke debt solutions for startups, fostering the expansion of India’s venture debt sector. This coincides with a robust 34% CAGR since 2017 and a significant rise in venture debt investments in Indian startups, reflecting the market’s vigorous growth.