From capital to good demand, here's what is driving venture debt in India

Venture debt firm invest only in start-ups which are backed by VCs and have raised Series-A and Series-B round of capital

Six months ago, two top executives at India’s top venture debt provider Innoven Capital quit to float a Rs 10-billion venture debt fund. Since then, Alteria Capital, the fund floated by former Innoven honchos Ajay Hattangdi and Vinod Murali, has roped in two banks as investors and will soon announce the first close for its maiden fund.

But they are not alone. At least three other firms have announced plans to raise a venture debt fund. These include Unicorn Ventures, IvyCap Ventures and Intelligrow, while early entrant Trifecta Capital is gearing up to raise its second fund after deploying Rs