LetsVenture, an early-stage investment firm, has announced the launch of its revenue-based growth capital firm N+1 Capital. According to a statement, the company has received a go-ahead from SEBI to raise its first Cat-II AIF of $100 million in India ($75 million + $25 million greenshoe).

N+1 Capital is a Cat-II AIF, and the first revenue-based growth capital fund in India. Revenue-based growth capital (RBGC) is an alternative method of raising capital for entrepreneurs where investors receive a percentage share of the ongoing monthly gross revenue of the businesses they invest in.

The fund will make its first close of around $19 million by February, and will subsequently start deploying the capital.

Rahul Chowdhury, Managing Partner, N+1 Capital, said the vision of the fund is to provide capital to over 100+ entrepreneurs.

It will offer growth-stage capital to startups across sectors with ticket sizes of Rs1 crore to Rs15 crore. The debt fund is looking at firms which are at least a year old with net revenue of Rs50 lakh and average gross margins of over 30%.

N+1 is sector agnostic, and its limited partners include family offices in the UK, the US, and India, as N+1 looks to provide at least 20% internal rate of return (IRR) to its backers.