Anthill Ventures seeks to raise $100 mn for private credit cross-fund

By Kari Lindberg
 

Indian-based firm Anthill Ventures plans to launch a hybrid fund focused on the startup sector as investors flock to the Asian nation amid a slowdown in the Chinese economy.
 

The company plans to raise $100 million for a cross private credit and equity fund to finance Indian startups geared toward consumer experiences, wellness, and entertainment, Founder and Chief Executive Officer Prasad Vanga said in an interview Monday.

The US dollar-denominated portfolio will be composed of technology startup companies and consumer brands, said Vanga. Financing for the brands will likely be in the form of debt, with the option to convert it into an equity stake once the company successfully scales up, he added. 

The $1.7 trillion global private credit market has become a serious rival to mainstream lending, attracting investors by offering higher rates of returns. India has become a hotbed for private credit activity, as global firms including Cerberus Capital Management LP and Varde Partners LP seek to tap into what’s viewed as Asia’s largest growth market.

For Anthill, the private sector play provides opportunities for a startup market that is often unable to access traditional bank financing. “Securing debt in India is tough as banks typically want security and don’t accept startup company valuations,” said Vanga. “So that’s a huge opportunity for us.” 

Vanga has backed several successful companies, according to Anthill’s website, including coding platform Tynker that was acquired by online education giant Byju in 2021.