World Bank's IFC Invests In Alteria Capital’s Shorter Duration Scheme For SME Lending

International Finance Corporation (IFC) has made its first investment in india's SME credit space by anchoring Alteria Capital’s Shorter Duration Scheme (SDS).

This investment aims to support fast-growing startups in fintech, EVs and consumer brands by addressing their short-term funding needs, such as working capital and inventory financing.

Unlike Alteria’s core venture debt, SDS focuses on quick funding for licensed fintech firms and consumer startups. Its portfolio includes proptech startup Ivy Homes, financial services firm Swara Fincare and consumer brand TEN x YOU.

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“We funded $200 million of debt to Indian startups in 2024 alone, but there’s a meaningful gap in short-term financing options, especially for financial services and consumer companies,” said Vinod Murali, Co-founder and Managing Partner at Alteria Capital. “These companies need bespoke offerings from trusted partners—that’s the space we’re filling with SDS. We’re pleased to welcome IFC as an anchor investor.”

“Innovative financial solutions are crucial for bridging funding gaps.Our partnership with Alteria underscores our commitment to pioneering fund managers who drive business model innovation. By addressing short-term needs, we aim to accelerate India’s tech ecosystem and economic growth,” said Wendy Werner, IFC’s Country Head for India and Maldives. 

The fund will invest over three years and focusing on sustainable businesses in underserved markets.

Alteria, one of India’s largest venture debt firms with Rs 4,500 crore in assets, has provided over $800 million in startup funding since its launch seven years ago.

It supports companies at different stages by offering flexible capital alongside equity funding to help them grow efficiently.

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