Anthill Ventures to Raise $100 Million for New Hybrid Fund Focused on Indian Startups
- ByStartupStory | May 3, 2024
Anthill Ventures, a renowned speed-scaling ecosystem, has announced its plans to launch a new hybrid fund that will combine private credit and equity investments. The ambitious initiative seeks to amass $100 million to invest primarily in sectors such as consumer experiences, wellness, and entertainment.
According to Bloomberg’s latest report, Prasad Vanga, the founder and CEO of Anthill Ventures, highlighted the strategic focus of the new fund. “Our US dollar-denominated portfolio will primarily target technology start-ups as well as emerging consumer brands,” Vanga explained. He further detailed that the initial financing would likely be in the form of debt, which could later be converted into equity stakes as the companies scale up successfully.
The move comes at a time when the global private credit market is experiencing a surge in popularity, offering higher returns compared to traditional lending. The International Monetary Fund (IMF) recently noted that this market now encompasses over $2.1 trillion globally in assets and committed capital. Private credit provides loans issued by non-bank financial institutions such as investment funds to corporate borrowers.
In discussing the challenges faced by startups in securing financing through conventional banking systems in India, Vanga remarked, “Securing debt in India is tough, as banks typically want security and don’t accept startup company valuations.” He sees these challenges as opportunities for Anthill Ventures to step in and make a significant impact.
Anthill Ventures has a history of partnering with innovative corporations and governments across Asia to provide startups with the necessary connections and resources to achieve rapid growth. Among its success stories is Tynker, a coding platform acquired by educational technology giant Byju’s in 2021, and Scandalous Food, a confectionary startup that received Rs 1.6 crore in pre-seed funding from Anthill.
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