VentureSoul Partners, a newly established venture debt firm, has marked a significant milestone by reaching the first close of its maiden fund, securing INR 600 crore. This fund, registered as a Category II Alternative Investment Fund (AIF) with SEBI, is set to target a total corpus of INR 300 crore, with an additional INR 300 crore in greenshoe options. The firm aims to back high-potential startups across various sectors, positioning itself as a key player in the Indian venture debt landscape.
The INR 600 crore maiden fund is set to make a notable impact by investing in approximately 20-25 startups. The firm plans to allocate an average ticket size of INR 25-30 crore per startup, with a maximum cap of INR 60 crore for individual investments. This approach aims to provide substantial support to startups that are at the Series A stage or beyond, particularly those with established business models and revenue streams.
VentureSoul’s investment focus will primarily cover sectors such as fintech, B2C, B2B, and SaaS. The firm is also planning to introduce a differentiated debt proposition for the new-age economy clients, bringing innovative banking practices into the venture fund domain. This includes a unique evaluation approach and customized debt products tailored to the evolving needs of modern startups.
Founded by former HSBC bankers Gala, Anurag Tripathi, and Kunal Wadhwa, VentureSoul combines over 65 years of banking and business-building experience. The founders’ extensive background in managing and growing businesses for both domestic and international organizations has been instrumental in shaping the firm’s vision.
VentureSoul aims to differentiate itself by integrating prudent banking principles with advanced credit evaluation technologies. This hybrid approach is designed to offer tailor-made solutions and foster a partnership-driven model with its portfolio companies. The firm’s strategy focuses on blending traditional banking practices with innovative funding solutions to support startups effectively.
So far, VentureSoul has garnered commitments from a diverse range of investors, including family offices, corporates, high-net-worth individuals, and professionals. The firm expressed its gratitude to these investors and emphasized its commitment to disciplined deployment of the fund. Looking ahead, VentureSoul plans to expand its operations and seek additional funds in future rounds to scale its impact further.
According to Inc42 data, venture debt funding accounted for approximately 4.3% (or $6.5 billion) of the total $148.8 billion raised by Indian startups between 2014 and April 2024. Despite the growing interest, only 13 venture debt funds were announced between 2021 and 2023, with a combined corpus of $1.5 billion. This represents just 4.4% of the over 270 funds announced during the same period, indicating a relatively small but crucial segment of the funding ecosystem.
VentureSoul’s entry into this space comes at a time when the need for alternative financing options is increasing. The firm’s approach of blending traditional banking principles with modern credit solutions is expected to address gaps in the existing venture debt market and provide valuable support to emerging startups.
VentureSoul Partners’ successful first close of its INR 600 crore fund is a significant development in the Indian venture debt sector. With a focus on fintech, B2C, B2B, and SaaS startups, and a unique approach combining banking expertise with innovative credit solutions, VentureSoul is poised to make a substantial impact. As the firm continues to build its portfolio and seek further investment opportunities, it is set to play a pivotal role in supporting the growth of high-potential startups in India.
