Mumbai-based alternative investment powerhouse VentureSoul Partners has triumphantly closed its maiden debt fund at the base target of ₹300 crore, marking a stellar debut in India’s burgeoning structured credit arena. Registered as a SEBI Category II Alternative Investment Fund (AIF), VentureSoul’s fund is laser-focused on delivering tailored venture debt and structured financing to high-growth, new-economy companies—think fintech disruptors, SaaS innovators, and B2B/B2C trailblazers. This milestone, announced on November 28, 2025, comes hot on the heels of a ₹146 crore first close in September 2024, enabling swift deployment and proving the firm’s magnetic pull on domestic capital.
Founded in 2023 by a trio of ex-HSBC banking veterans—Anurag Tripathi, Ashish Gala, and Kunal Wadhwa—VentureSoul blends old-school credit rigor with cutting-edge data analytics to craft bespoke debt solutions. The fund’s sweet spot? Series A and later-stage startups craving capital to scale without the dilution headache of equity rounds. Average ticket sizes hover at ₹20-25 crore, with a sector-agnostic lens but a clear tilt toward fintech, B2C, B2B, and SaaS ecosystems. In a funding landscape still thawing from the 2022-23 winter, this debt play offers founders a lifeline: flexible terms, milestone-linked disbursals, and covenants that align with growth trajectories rather than hamstring them.
The investor roster reads like a who’s who of India’s entrepreneurial elite, underscoring the fund’s credibility. Anchor investor Micro Labs Ltd, a healthcare heavyweight, leads the pack, joined by corporate heavyweights Rupa Group and Glen Appliances Ltd. High-profile individuals rounding out the LP base include KreditBee founder E. Madhusudan, Perfios co-founder Omkar Shirhatti, and promoters from Canpac and Zebronics Group. This mix of family offices, HNIs, and institutions signals robust domestic appetite for non-equity alternatives, especially as global LPs remain selective.
Action hasn’t lagged behind ambition. Since the first close, VentureSoul has already inked 15 deals, turbocharging a diverse portfolio of new-economy darlings. Standouts include edtech innovator PlayShifu, co-living pioneer ZoloStays, telecom gear maker Metro Telworks, metal recycling disruptor Metalbook, seafood supply chain wizard Captain Fresh, app development specialist Mozark, and lending platform True Credits. These investments, often in the ₹10-25 crore range, exemplify the fund’s strategy: providing bridge financing for expansions, acquisitions, or inventory ramps, all while keeping equity intact for future unicorn hunts.
But the journey’s far from over. With the green-shoe option activated, VentureSoul eyes an additional ₹300 crore by February 2026, potentially doubling the corpus to ₹600 crore. This expansion war chest will deepen dives into underserved niches like climate tech and deeptech, while amplifying co-lending partnerships with banks and NBFCs. “We extend our sincere gratitude to our investors, portfolio companies, ecosystem partners, and all stakeholders who have supported us in achieving this milestone,” the partners stated in a joint release, radiating optimism about India’s startup debt renaissance.
The timing is impeccable. India’s AIF industry has ballooned to over ₹8 lakh crore in AUM by mid-2025, with Category II funds—unleveraged, diversified vehicles like VentureSoul—surging 40% YoY on the back of regulatory tailwinds and LP diversification. Venture debt, once a niche 5% of startup funding, now claims 15-20% share, as founders pivot from frothy valuations to pragmatic capital. Peers like Alteria Capital and Stride Ventures have paved the way with billion-dollar track records, but VentureSoul’s HSBC-honed underwriting edge—stress-testing cash flows with AI-driven models—positions it as a nimble challenger.
Challenges persist: rising interest rates could squeeze borrower margins, and economic headwinds might test repayment resilience. Yet, VentureSoul’s conservative deployment (targeting 40-50 deals total) and focus on revenue-positive firms mitigate risks. For founders, it’s a game-changer: debt as a scalpel, not a sledgehammer.
As India barrels toward a $1 trillion digital economy by 2030, funds like VentureSoul aren’t just financiers—they’re architects of sustainable growth. This ₹300 crore close isn’t an endpoint; it’s the spark igniting a debt-fueled startup supernova, one structured deal at a time.
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Last Updated on: Tuesday, December 2, 2025 7:24 pm by Republic Business Team | Published by: Republic Business Team on Tuesday, December 2, 2025 7:24 pm | News Categories: Startup
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