Anthill Ventures is set to introduce a new hybrid fund aimed at the thriving startup industry in India, against a backdrop of increasing global investor enthusiasm and a slowing Chinese market.
Prasad Vanga, Anthill’s founder and CEO, disclosed the company’s intent to amass $100 million for a hybrid fund that will blend private credit and equity investments. This fund is poised to bolster Indian startups with a focus on consumer experiences, wellness, and entertainment sectors.
Vanga shed light on the fund’s investment strategy, which will primarily include technology startups and consumer brands, with all investments denominated in US dollars. The financing approach will start with debt and may transition to equity as the startups grow.
The private credit market, now valued at an impressive $1.7 trillion, stands as a strong alternative to conventional bank lending and promises higher yields for investors. India has become a hotspot in this market, drawing the gaze of international powerhouses such as Cerberus Capital Management LP and Varde Partners LP.
Anthill Ventures sees an opening in the private credit sector as a means to support startups that are typically bypassed by mainstream financial institutions. Vanga emphasized the difficulty startups face in securing loans in India due to banks’ stringent collateral requirements and their reluctance to accept startup valuations. This challenge presents a substantial opportunity for the venture.
Vanga’s past investment successes, including the support of Tynker, a coding platform that was acquired by Byju’s in 2021, speaks to his expertise and the potential of Anthill’s new fund initiative.
