Anthil Ventures, a speed-scaling ecosystem, intends to launch a hybrid fund that will focus on start-up sectors, as per a report by Bloomberg.
As per the report, founder and CEO Prasad Vanga stated that the company aims to raise $100 million for a combined private credit and equity fund. The fund aims to fund Indian start-ups that are focused on consumer experiences, wellness, and entertainment.
Banga further said that the US dollar-denominated portfolio would primarily focus on technology start-ups as well as consumer brands. He added that the financing aspect of the brand would likely be in the form of debt. Once the company scales up successfully, one will have the option to convert it into an equity stake.
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With the popularity of the global private credit market, which offers a higher rate of return, mainstream lending has become a series of rivals to it. As per Britannica, “private credit refers to loans issued by a private institution and extended to privately held companies.”
Talking about the popularity of the private credit market, the IMF recently said, “The private credit market, in which specialized non-bank financial institutions such as investment funds lend to corporate borrowers, topped $2.1 trillion globally last year in assets and committed capital.”
“Securing debt in India is tough, as banks typically want security and don’t accept startup company valuations,” said Banga as per the report. That’s what becomes an opportunity for them, he added.
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Banga’s company Anthill “has partnered with some of the most innovative corporations and governments in Asia to give startups valuable connections and resources needed to achieve rapid growth,” as per the company's website. Some of the start-ups that were helped by the company include Tynker, a coding platform that was acquired by Ed Tech's Byju's in 2021, and Scandalous Food, a confectionary start-up. The start-up received Rs 1.6 crore from Anthil Ventures in pre-seed funding.
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