India’s Stride Ventures, one of the top venture debt companies in the nation, reported that it had raised $100 million, or half of its goal of over $200 million. The company completed this first close four months after getting the third fund’s licence, according to a statement from Stride Ventures.
The venture debt firm, which was established in 2019 and has already raised two funds, said that a variety of institutional investors, including banks, insurance companies, and family offices, provided support for the third fund. Fast-growing firms with solid business models, positive unit economics, and knowledgeable management teams will be the focus of its investments.
According to Apoorva Sharma, managing partner at Stride Ventures, “we see a growing demand for venture debt as startups look to optimise their capital structure and preserve equity for future rounds.” With the opening of our third fund, we are in a good position to support Indian entrepreneurs’ specific debt needs as well as their international aspirations.
By 2025, according to Stride Ventures, the Indian venture debt industry is anticipated to deploy $3 to $4 billion annually. SUGAR Cosmetics, The Good Glamm Group, Mensa Brands, Exotel, Yubi, and MoneyView are a few of the companies in the company’s portfolio.
“Stride takes immense pride in being the largest contributor of credit to new age businesses that has sanctioned over Rs 5,000 crore in the Indian startup ecosystem,” said Ishpreet Gandhi, the founder and managing partner of Stride Ventures.
Given the current funding crunch, venture debt has become a more and more popular way for startup entrepreneurs to raise funds. This aids startups in obtaining other sources of funding while maintaining their valuation.
With the successful distribution of more than 100% of its commitments, including coupon payouts and principal redemptions, to the early investors of its Fund 1, Stride Ventures has already demonstrated its mettle in the venture debt market.
The unveiling of Stride Ventures‘ third debt fund has sparked enthusiasm in the Indian startup community since it is viewed as a sign that the country’s venture loan market is expanding and maturing.
“Stride Ventures has become a key player in the venture finance market, giving the Indian startup ecosystem essential support. According to Naganand Doraswamy, the founder and managing director of Ideaspring Capital, “the announcement of their third fund is a tribute to their success and we look forward to their sustained contribution to the Indian startup ecosystem.
Over the years, the Indian venture debt market has steadily expanded as more and more entrepreneurs resort to it for funding. With the launch of Stride Ventures’ third debt fund, it is certain that the market will only expand and mature, giving India’s flourishing startup ecosystem the much-needed assistance.