Stride Ventures to diversify bets with $165 mn third fund
Venture debt firm Stride Ventures has closed its third fund at $165 million, nearly a year after the first close. The fund garnered support from a diverse investor pool, including insurance companies, family offices, corporate treasuries, and high net-worth individuals (HNI), the company said in a statement on Wednesday.
“We have been broadening our impact across the Indian startup ecosystem, with comprehensive financial solutions for working capital, inorganic expansion, capital expenditure and growth,” Apoorva Sharma, managing partner at Stride Ventures, said.
The fund primarily focuses on consumer-centric brands, financial services, and cleantech sectors. Its portfolio companies include Moneyview, CureSkin, Moove, BlueStone, Foxtale, NewMe, Nat Habit, and AgroStar.
“This approach aligns with global growth trends within the startup ecosystem,” said Ishpreet Singh Gandhi, founder and managing partner, Stride.
In 2019, the firm had raised $50 million for its first fund and two years later, it raised a $200 million second fund.
The third fund is smaller due to limited funding opportunities, it said.
Stride, which has allocated over $650 million across its funds, has also been exploring investments in Abu Dhabi and has been in discussions to raise additional capital, the company said.
Stride is sector-agnostic and seeks to meet capital requirements of more than 140 Indian startups, spanning consumer, fin-tech, B2B commerce, health-tech, agritech, mobility, energy solutions (EVs) and B2B SaaS.
In the past one year, India’s venture debt space has surged past the billion-dollar mark, to $1.2 billion following growing confidence among founders, venture capitalist and investors, to drive deals for the sector, said Stride in a report in February.
The billion-dollar milestone comes as companies and startups worldwide have been struggling with a decline in funding activity as high-interest rates, uncertain macroeconomic conditions as well as geopolitical concerns have dampened investor sentiment globally.
Consequently, startups are increasingly showing a preference for one-stop debt solutions that simplifies fundraising and financial packages.
The trend further underscores India’s maturing market and the growing sophistication of venture-debt solutions tailored to address the needs of companies.