Anthill Ventures, led by Founder and CEO Prasad Vanga, aims to introduce a $100 million cross private credit and equity fund to support Indian startups, particularly those in sectors like consumer experiences, wellness, and entertainment. Vanga highlighted the plan to create a US dollar-denominated portfolio comprising technology startups and consumer brands. This unique approach involves providing initial debt funding to the brands, with potential conversion to an equity stake once the businesses achieve significant growth.
The private credit market, valued at $1.7 trillion globally, is increasingly attracting investors due to its promising higher return rates compared to traditional lending options. Notably, India has become a prominent hub for private credit activities, drawing interest from international firms such as Cerberus Capital Management LP and Varde Partners LP, seeking to capitalize on the country's strong growth potential. Anthill Ventures recognizes the challenges faced by startups in accessing conventional bank financing, with Vanga mentioning the difficulty of obtaining debt due to banks' preference for security and reluctance to accept startup valuations.
Vanga's track record includes supporting successful companies like Tynker, a coding platform that was acquired by the online education giant Byju in 2021, as disclosed on Anthill's website. This experience underscores the firm's commitment to nurturing and investing in startups, leveraging its expertise and network to facilitate growth opportunities in the Indian startup ecosystem.