Varanium Venture Debt Fund II

AI-Powered Revenue-Based Financing & Venture Debt Fund for India's High-Growth Startups

Accelerating India's Innovation Economy with Smarter Credit

Varanium Venture Debt Fund II is an institutional alternative investment fund that provides flexible, non-dilutive capital to growth-stage startups through a unique blend of Revenue-Based Financing (RBF) and Traditional Venture Debt. Backed by an AI-powered underwriting platform, robust risk management framework, and experienced credit professionals, the fund aims to deliver attractive risk-adjusted returns while preserving founder equity.

Fund Highlights

Why Varanium?

Varanium combines institutional credit discipline, AI-driven underwriting, and deep startup ecosystem expertise to create a differentiated venture debt platform designed for both founders and investors.

Proven Track Record

• Fund I has consistently delivered ~17% Pre-Tax IRR (Pre Fees, Pre Carry)
• Monthly coupon distributions
• Proven execution across multiple startup financing cycles

Experienced Investment Team

• Leadership with 23+ years of credit and underwriting experience
• Team has successfully navigated 4+ credit cycles
• Unique blend of startup investing and institutional lending expertise
• Same investment team managing Fund II

Strong Deal Flow

• GetVantage ecosystem has facilitated ₹1,350+ Crore in financing
• More than 14,000 startup transactions
• Proprietary sourcing through:
  • Investment Bankers
  • Venture Capital Funds
  • Debt Syndication Platforms
  • Organic founder network

Institutional Risk Management

• Escrow-based collections
• Granular loan book
• Sector diversification
• Industry benchmarking
• AI-powered credit intelligence

What is Revenue-Based Financing?

Revenue-Based Financing (RBF) is a modern lending model where startups receive growth capital by pledging a percentage of future revenues instead of taking on fixed EMI obligations.

Unlike traditional debt, repayments adjust according to business performance, making financing more founder-friendly while improving downside protection for investors.

Why Startups Choose RBF

• Growth capital without equity dilution
• Flexible repayments linked to revenue
• Faster access to capital
• Lower repayment stress
• Extended operating runway
• Improved working capital management

Typical Use Cases

• Marketing & Customer Acquisition
• Inventory Financing
• Product Expansion
• Geographic Expansion
• Working Capital
• Business Scaling

Why Revenue-Based Financing?

Investment Strategy

Varanium follows a dual investment strategy combining Revenue-Based Financing (RBF) and Traditional Venture Debt to achieve portfolio diversification while delivering attractive risk-adjusted returns.

Investment Focus

The fund targets scalable technology businesses across India's fastest-growing sectors.

D2C & Ecommerce Enablement

• Consumer brands
• Embedded finance
• Customer experience
• Digital commerce
• Payment innovations

Industry Snapshot

• $7.3 Billion Funding
• 14.1K+ Brands
• ₹160B+ Market Opportunity

Clean Technology

Investment across

• EV ecosystem
• Battery technology
• Renewable energy
• Sustainability platforms
• Climate innovation

Industry Snapshot

• $13.6 Billion Funding
• 80 Million EV Sales Opportunity
• 500 GW Renewable Capacity Target

SaaS

Focus Areas

• Enterprise Software
• AI SaaS
• Global SaaS Companies
• Subscription Platforms

Industry Snapshot

• $30.7 Billion Funding
• 4,850+ Active Startups
• ₹50 Billion ARR Opportunity

FinTech

Investment across

• Lending
• Payments
• WealthTech
• Banking Infrastructure
• Embedded Finance

Industry Snapshot

• $37.4 Billion Funding
• World's 3rd Largest FinTech Ecosystem
• ₹400 Billion Market Opportunity

AI & Data-Driven Credit Intelligence Platform

Varanium's proprietary technology platform continuously evaluates borrower quality using structured and alternative data to improve underwriting accuracy and portfolio monitoring.

AI Risk Rating

Combines

• Banking Data
• GST Filings
• MCA Records
• Financial Statements
• Alternative Business Signals

to generate dynamic borrower risk scores.

Early Warning Intelligence

Identifies

• Revenue deterioration
• Collection delays
• Banking anomalies
• Financial stress
• Operational risks

before defaults occur.

AI Due Diligence

Automates

• Banking analysis
• GST validation
• MCA verification
• Bureau checks
• Financial analysis

reducing underwriting timelines from weeks to minutes.

Revenue Forecasting Engine

Machine learning models predict

• Future cash flows
• Revenue trajectory
• Seasonality
• Collection efficiency
• Business performance

Benchmark Intelligence

Every portfolio company is benchmarked against thousands of businesses to evaluate

• Funding readiness
• Operational efficiency
• Credit positioning
• Financial strength

Connected Data APIs

Integrates data from

• Banks
• GST
• MCA
• ERPs
• CRMs
• Payment Gateways
• Marketplaces

for continuous monitoring.

Investment Process

Step 1 — Startup Identification & Onboarding

Deal sourcing through

• Organic Network
• GetVantage
• Investment Bankers
• Venture Capital Funds
• Debt Syndication Partners

Step 2 — Due Diligence & Assessment

Comprehensive evaluation of

• Financial Risk
• Revenue Quality
• Collection Risk
• Market Risk
• Management Team
• Compliance
• Vendor Due Diligence

Step 3 — Approval & Disbursal

• Investment Committee Review
• Credit Recommendation
• Deal Structuring
• Term Sheet Issuance
• Documentation
• Capital Deployment

Step 4 — Portfolio Monitoring

Continuous monitoring through

• Monthly MIS
• Bank Statement Analysis
• GST Monitoring
• Portfolio Reviews
• Net Promoter Score (NPS)

Risk Mitigation Framework

Protecting investor capital through institutional-grade risk controls.

Core Risk Controls

• Senior Secured Debt
• Granular Loan Portfolio
• Sector Diversification
• Industry Benchmarking
• AI-Powered Credit Intelligence
• Escrow-Based Collections
• Continuous Cash Flow Monitoring
• Loan Exposure Capped at 20% of ARR
• Personal Guarantees in Select Cases

Fund Terms

Fund Details

Tenure

Fee Structure

Return Profile

Why Invest with Varanium?

• Institutional-grade underwriting
• AI-powered credit intelligence platform
• Flexible revenue-based financing model
• Attractive target returns
• Regular coupon distributions
• Diversified technology-focused portfolio
• Experienced investment leadership
• Robust risk management framework
• Strong proprietary deal pipeline
• Access to India's rapidly growing startup ecosystem

Your Wealth Deserves Institutional Expertise.

At ALTPORT, we combine research-driven investment strategies, experienced fund managers, and access to exclusive private market opportunities to help sophisticated investors build resilient, high-performing portfolios.

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