Fund II has a corpus of Rs 1,000 crore, with a inexperienced shoe possibility of round Rs 875 crore.
“We shall be closing Fund II within the subsequent 45-60 days. The demand is so excessive that we have now already exercised a big portion of the inexperienced shoe possibility,” Ishpreet Singh Gandhi, founder and managing companion on the venture debt firm, stated.
Exercising the inexperienced shoe possibility permits a enterprise capital or non-public fairness agency to boost capital over and above its authentic goal corpus, particularly when demand for the fund will increase amongst traders.
“With fairness funding getting stricter and with founders additionally realising how helpful debt funds are and its extensive use circumstances, we’re seeing a number of demand,” Gandhi advised ET.
Based in 2019, Stride Ventures has invested in additional than 20 corporations from its first fund. These embrace Pocket Aces, Sugar Cosmetics, Infra.Market, Zetwerk and Residence Lane.
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Stride Ventures closed its maiden fund of Rs 350 crore in 2021.
Fund II was arrange in Could 2021. The corporate introduced the primary shut of Fund II in August final 12 months.
“We’ve got round 30 corporations already in Fund II and by the point we shut it will likely be round 50. Because the token dimension was small, a lot of the capital raised is disbursed and deployed,” Gandhi stated.
The use case of debt funds has widened in India from working capital necessities to capex and inorganic acquisition funding, and Stride Ventures is trying to arrange a separate fund for provide chain financing.
“We’ve got provide you with a brand new product that may focus solely on provide chain financing. It is going to be underneath Stride’s ambit, and it’s proper now in stealth mode,” Gandhi stated
Stride Ventures’ portfolio has startups and corporations from totally different sectors like shopper, healthcare, and e-commerce.
“Shopper, healthcare and commerce cowl 60% of our portfolio whereas fintech, edtech and agritech have a number of use circumstances, we’re exploring that phase now and can add extra corporations,” Gandhi stated.
Stride Ventures is including round 5-6 new corporations and shutting $15-$20 million of contemporary sanctions each month.
“Throughout the buyer phase, we have now added MyGlamm, we’re doubling down on Sugar Cosmetics. We’re including 4-5 new corporations to the portfolio like the buyer robotics firm, Miko and different e-commerce corporations,” he stated.
“We’re actively speaking to EV startups for funding. I don’t suppose one or two situations will lead to the way forward for how EVs will form in India. We are going to embrace EVs. Battery producer Lohum is already in Fund II, and we want to add 3-4 extra,” Gandhi stated.
Stride Ventures competes with funds akin to Alteria Capital, Trifecta Capital and Blacksoil. A enterprise debt fund lends cash to startups alongside fairness traders. Enterprise funds often spend money on late and growth-stage corporations.