“ECYOF is a much-needed alternative that allows venture/private equity-backed high-growth companies to raise additional capital to augment equity financing and continue their growth trajectory,” Edelweiss’ statement added.
Edelweiss Wealth Management (EWM) has launched an INR 3,000 Cr ($361 Mn) venture debt fund, the Edelweiss Crossover Yield Opportunities Fund (ECYOF). The fund is said to be a close-ended Category II alternative investment fund (AIF).
In a statement, Edelweiss said that the fund is being launched when a funding slowdown has gripped the private capital market. The company added that the slowdown has made founders and promoters more sensitive to equity dilution and they are keener on ensuring that they have enough capital to survive the downturn.
“ECYOF is a much-needed alternative that allows venture/private equity-backed high-growth companies to raise additional capital to augment equity financing and continue their growth trajectory,” Edelweiss’ statement added.
Media sources reported that the fund would be sector-agnostic, investing across growth-stage startups from Series A onwards. Pranav Parikh and Gaurav Gairola from the company are managing the fund.
Parikh said on the fund’s launch that the company would help emerging startups and enterprises scale with a debt offering. It is prudent to mention here that Edelweiss has a series of funds that offers equity funding to startups in India.
