Stride Ventures announces first close of third venture debt fund at $100 mn

Firm invests in startups that exhibit robust business models and strong unit economics

Stride Ventures, a venture debt firm, has announced the first close of its third fund at $100 million and seeks a final of more than $200 million.

Stride said it is harnessing growth potential in the Indian venture debt market, which is expected to reach an annual deployment of $ 3-4 billion by 2025.

"Stride has been the largest contributor of credit to new-age businesses and has sanctioned over Rs 5,000 crore in the Indian startup ecosystem,” said Ishpreet Gandhi, founder and managing partner of the company.

Stride has a diversified portfolio of more than 100 companies that include SUGAR Cosmetics, Good Glamm Group, Mensa Brands, Exotel, Yubi, and MoneyView.

The firm said it has also successfully distributed over 100 per cent of its commitments, which include coupon payouts and principal redemptions, to early investors of its Fund 1.

"We see a growing demand for venture debt as startups look to optimise their capital structure and preserve equity for future rounds,” said Apoorva Sharma, managing partner at Stride Ventures. “With the launch of our third fund, we're well-positioned to meet the unique debt requirements of Indian startups."

Stride Ventures’ third fund has received backing from a varied group of institutional investors, including banks, insurance companies, and family offices. The firm said this fund will invest in fast-growing startups that exhibit robust business models, strong unit economics, and skilled management teams.