Nov 20: Venture capital fund Unicorn India Ventures has unveiled its new venture debt fund with a fund size of Rs 600 crore. M Damodaran, Chairman, Unicorn India, and former SEBI Chairman, launched the fund, Unicorn’s second, in Mumbai today.
According to Damodaran, “the Indian startup ecosystem is maturing. While there has been a lot of venture equity activity over the last few years, startups are still starved of funds for growth. The capital structure of funds is lopsided with hardly any debt. We believe, it is the right time to launch a venture debt fund, as this asset class will sit alongside traditional venture equity. I’m looking forward to working with the startup ecosystem and help startups optimize their capital structure for balanced growth”.
Bhaskar Majumdar, Managing Partner, Unicorn India Ventures, added, “While running our first venture equity fund, we realized the need for debt financing for startups. High levels of founder dilution, uncertain exit scenarios and limited financing options from Banks/NBFCs have made debt financing need-of-the hour for startup ecosystem.”