BENGALURU — Indian venture debt firm Alteria Capital on Monday announced it has raised 10 billion rupees ($120 million) to back startups in the country, which are increasingly looking for alternative sources of funding as equity investments dry up.

Alteria — set up in 2017 by former InnoVen Capital executives Vinod Murali and Ajay Hattangdi — typically provides loans to companies that have already raised equity financing. The latest fund could be extended by another 10 billion rupees, managing partner Murali told Nikkei Asia.