IFC Backs Alteria Capital's Shorter Duration Scheme to Boost SME Credit

Alteria Capital has secured investment from the International Finance Corporation (IFC) for its Shorter Duration Scheme. This scheme aims to enhance balance sheet efficiency by focusing on short-term capital needs of SMEs, particularly fintech firms and consumer brands. The move is expected to strengthen Alteria's position as a leading structured credit provider in India.

Venture debt manager Alteria Capital announced on Thursday that the International Finance Corporation (IFC) has invested in its Shorter Duration Scheme, marking IFC's entry into the SME credit segment. The scheme aims to address short-term liquidity needs, improving the balance sheet efficiency of market players including licensed fintech companies, consumer brands, and electric vehicle OEMs.

While the amount of investment was not disclosed, Alteria stated that IFC's involvement will bolster its role as a comprehensive structured credit provider for India's burgeoning new economy companies. The firm has already funded USD 200 million in debt to Indian startups in 2024, highlighting the existing demand for such financial solutions.

Wendy Werner, Country Head for India and Maldives at IFC, emphasized that the investment seeks to address the gap in short-term financing options, supporting the ecosystem for startups and disruptive technologies in India. Established in 2017, Alteria Capital is the largest venture debt fund in India, managing assets worth Rs 4,500 crore and offering innovative debt solutions to startups.

(With inputs from agencies.)