Varanium Capital, an asset management company, has recently achieved the first milestone of its debut venture debt fund, raising Rs 250 crore. This fund aims to support approximately 100 startups by utilizing a combination of revenue-based financing and traditional venture debt. Notably, the fund has already secured an anchor investor and received commitments from family offices, ultra-high-net-worth individuals (UHNIs), as well as notable entrepreneurs, including former CEOs and CXOs of prominent banks.
Heading the management of the debt fund is Nawal Bachhuka, a principal at Varanium Capital, along with former senior management members from IndusInd Bank, such as ex-CEO Romesh Sobti, former CRO KS Sridhar, former head of corporate lending Suhail Chander, and former COO Paul Abraham. The investment committee responsible for decision-making comprises Varanium Group founder TS Anantakrishnan, venture capital partner Aparajit Bhandarkar, Suhail Chander, and KS Sridhar.
In a statement, TS Anantakrishnan, the Founder of Varanium Capital, emphasized that the venture debt fund will extend financial support to startups operating in various sectors, including D2C (Direct-to-consumer), SaaS (Software as a Service), B2B commerce, and fintech, facilitating their scaling operations.
Additionally, the fund is expected to have a green shoe option of Rs 50 crores, which allows it to raise capital beyond the initial target amount, fueled by the interest expressed by potential investors. Notably, Varanium Capital manages assets worth approximately $1 billion across diverse asset classes, including structured debt, portfolio management services (PMS), and venture capital funds.
Previously, Varanium Capital’s fintech-focused equity fund has provided backing to 12 startups, including successful ventures like Easebuzz, Riskcovry, Finvu, and Homeville.
This achievement comes at a time when the startup ecosystem faces a funding winter, driving both investors and startups to explore alternative channels for capital flow. Notable players in the venture debt funds sector in India include Stride Ventures, Innoven Capital, Alteria Capital, and Trifecta Capital.
