The venture debt firm had also backed online vehicle service platform GoMechanic, which was offloaded recently in a distress sale. Last August, the firm had announced the final close of its second venture debt fund at $200 million.
“We are ecstatic to announce the first close of our third fund,” said Ishpreet Gandhi, founder and managing partner of Stride Ventures. “Stride takes immense pride in being the largest contributor of credit to new-age businesses … (and) has sanctioned over Rs 5,000 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,” he added.
In a statement, the firm said that it has successfully distributed over 100% of its commitments, including coupon payouts and redemptions to the early investors of its first fund.
“Stride’s founder-centric approach coupled with 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. “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.”
The firm said that it received backing from a varied group of institutional investors, including banks, insurance companies, and family offices, for its third fund. “This fund will persist in making prudent investments in fast-growing startups that exhibit robust business models, strong unit economics, and skilled management teams,” it added.
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According to a recent report by Stride Ventures, the amount disbursed through venture debt has increased 2.6 times, from $281 million in 2019 to $800 million in 2022. It added that the Indian venture debt market is expected to reach an annual deployment of $3-4 billion by 2025. Apart from Stride Ventures, some of the other debt funds operating in India are Alteria Capital, Trifecta, InnoVen Capital and Blacksoil.