Venture debt firm Stride Ventures which has announced the close of its third venture debt fund at $100 million. The fund is targeting to close over $200 million for the third fund. This is backed by institutional investors, including banks, insurance companies, and family offices, according to a statement by the company. This fund will be used to make investments in start-ups which exhibit robust business models, strong unit economics, and skilled management teams.
Commenting on this development, Ishpreet Gandhi, founder and Managing Partner at Stride Ventures said, “Stride takes immense pride in being the largest contributor of credit to new age businesses that has sanctioned over Rs 5000 crore in the Indian startup ecosystem. Stride Ventures' success in delivering value to its investors is a testament to our rigorous processes and strong internal governance structures.”
In a statement released by the company, Stride also highlighted that it has successfully distributed over 100 per cent of its commitments, which included coupon payouts and principal redemptions, to the early investors of its Fund 1.
“Stride’s founder-centric approach coupled with the overwhelming support from our investors, enables us to keep raising the bar for the venture debt market in India,” said Apoorva Sharma, Managing Partner at Stride Ventures. He also said, "We see a growing demand for venture debt as startups look to optimise their capital structure and preserve equity for future rounds. With the launch of our third fund, we're well-positioned to meet the unique debt requirements and global ambitions of Indian startups."
Founded in 2019, Stride focuses on supporting high-growth start-ups in sectors such as consumer internet, fintech, Software as a Service (SaaS), B2B businesses, among others. It has already invested in over 100 start-ups through its two funds. Some of its most successful bets include SUGAR, The Good Glamm Group, Mensa Brands, Yubi, Miko, among others.
The fund also invested in beleaguered start-up GoMechanic. The Gurugram-based company was acquired by auto components maker Lifelong Group in a distressed sale. Business Today had reported earlier that Stride Ventures had the conversations of this deal. Moreover, it is also slated to get back its Rs 100 core investment in the company. “Stride will receive a significant chunk of its investment now as the deal closes, the rest will be paid back in a few months’ time,” said a person in the know of the deal structure.