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Stride Ventures to fund 10-15 startups by March 2021

Saransh Pandey

Intern
  • October 23, 2020
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    Stride Venture typically funds startups in the edu-tech, agritech, consumer, logistics, and health tech sectors

Stride Ventures is planning to fund 10-15 companies over the next few months to complete its maiden fund with the aim of promoting venture debt as a significant tool for startups to access capital. Stride Ventures has already sanctioned Rs 115 crore worth of debt funding across 10 startups in the country including SUGAR Cosmetics, Miko, and HomeLane. 

Stride Venture is planning to have 16-18 companies in its portfolio by December and 20-25 companies by the end of March 2021, which will mark the completion of its first fund. Stride Ventures founder and Managing Partner Ishpreet Gandhi has already recognized 6-7 of these additional companies. He added that the company typically funds startups in the edu-tech, agritech, consumer, logistics, and health tech sectors. 

The original plan of Stride Venture was to invest about Rs 300-350 crore in total, but it may invest $20 million (about Rs 146.7 crore). Stride Venture may invest about Rs 15 crore on average and the usual tenure is about 12 months. The Venture works with a network of partner banks to facilitate the debt funding and these include foreign, Indian, and PSU banks. According to Ishpreet Gandhi debt funding can help raise valuation without dilution of equity for the founders. banks have scalability issues in terms of building a very scalable book on startup lending.  

Gandhi said in India, venture debt funds raised by local startups have risen to $215 million in 2019 from $125 million in 2018. Collectively, in the last 5 years, over $530 million in debt has been deployed across around 234 deals, and the total number of deals in 2019 was 86. In some of the bigger deals, BigBasket picked up Rs 100 crore as debt from Trifecta, whereas Alteria Capital put Rs 80 crore in Lendingkart at the same time (2019). 

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