Anthill Ventures, a company helping startups grow faster, is gearing up to launch a new fund. This fund will be a mix of private credit and equity aimed at supporting Indian startups. According to Bloomberg, Anthill Ventures wants to raise $100 million for this fund. The CEO, Prasad Vanga, explained that they’re making this move because there’s a lot of interest from investors in India right now, especially with the Chinese economy slowing down.
The fund will focus on consumer experiences, wellness, and entertainment startups. So, Anthill Ventures, known for its speed-scaling ecosystem, is getting ready to step up its game by supporting promising startups in these sectors.
Anthill Ventures Plans New Fund for Tech Startups and Consumer Brands
Prasad Banga, CEO of Anthill Ventures, shared that their upcoming fund will mainly focus on tech startups and consumer brands. He mentioned that the funding will likely be in the form of debt initially, with the option to convert to equity as the company grows. Private credit, which involves loans from private institutions to privately held companies, is becoming increasingly popular. According to the IMF, this market exceeded $2.1 trillion globally last year, offering higher returns than traditional lending.
Banga noted that securing debt in India is challenging for startups because banks often require collateral and may not accept startup valuations. However, this presents an opportunity for alternative funding sources like Anthill Ventures. The global private credit market, worth $1.7 trillion, is becoming popular for investors seeking higher returns than traditional lending. India is attracting attention in this area, with global firms like Cerberus Capital Management LP and Varde Partners LP showing interest.
Anthill Ventures Plans $100 Million Fund for Indian Startups
Anthill Ventures aims to raise $100 million for a fund combining private credit and equity. This fund will support Indian startups focused on consumer experiences, wellness, and entertainment. CEO Banga mentioned that the fund will mainly invest in technology startups and consumer brands, with financing likely initially in the form of debt, which could be converted into equity as the company grows. The popularity of the global private credit market, which offers higher returns, is challenging traditional lending. Private credit involves loans from private institutions to privately held companies.
Anthill Ventures: Empowering Overlooked Startups
Prasad Vanga is spearheading the company’s entry into the private credit sector to provide crucial support to startups often sidelined by traditional banks in India, where securing debt can be challenging due to stringent requirements. Vanga’s successful track record includes backing companies like Tynker, which was acquired by Byju’s in 2021. Anthill Ventures is renowned for its collaborations with innovative corporations and governments across Asia, offering startups valuable connections and resources for rapid growth. Noteworthy examples of their support include Scandalous Food, a confectionary startup that received Rs 1.6 crore in pre-seed funding.
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