Stride Ventures expects final close of second fund in next two months

Bangalore: Stride Ventures expects to achieve the final closing of its second fund in the next two months.

Fund II has a corpus of Rs 1,000 crore, of which the green shoe option is around Rs 875 crore.

“We will close Fund II in the next 45-60 days. The demand is so high that we have already exercised a major portion of the green shoe option,” said Ishpreet Singh Gandhi, founder and managing partner, venture debt firm.

Exercising the green shoe option allows a venture capital or private equity firm to raise more capital than its original target fund, especially when there is increased demand for the fund among investors.

“With equity funding tightening and even the founders are realizing how beneficial debt funds are and we are seeing a lot of demand for its widespread use,” Gandhi told ET.

Founded in 2019, Stride Ventures has invested in over 20 companies since its first fund. These include Pocket Aces, Sugar Cosmetics, Infra.Market, Jetworks and Home Lane.

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Stride Ventures closed its first Rs 350 crore fund in 2021.

Fund II was set up in May 2021. The company had announced the first closure of Fund II in August last year.

Gandhi said, “We already have about 30 companies in Fund II and by the time we close it will be around 50. Due to the small size of the token, most of the capital raised is distributed and used. is.”

The use of debt funds in India has expanded from working capital requirements to capex and inorganic acquisition funding, and Stride Ventures is looking to set up a separate fund for supply chain financing.

“We have come up with a new product which will be completely focused on supply chain financing. It will be in stride range, and it is in stealth mode now,” Gandhi said.

Stride Ventures portfolio includes startups and companies from diverse sectors such as consumer, healthcare and e-commerce.

“Consumer, healthcare and commerce cover 60% of our portfolio, while there are many use cases in fintech, edtech and agritech, we are currently exploring that segment and will be adding more companies,” Gandhi said.

Stride Ventures is adding about 5-6 new companies and closing new sanctions worth $15-$20 million every month.

“In the consumer segment, we have added MyGlamm, we are doubling down on Sugar Cosmetics. We are adding 4-5 new companies to our portfolio like Consumer Robotics Company, Meeco and other e-commerce companies.

The venture loan firm is also actively looking to invest in more electric vehicle (EV) and EV-related companies.

“We are actively in talks with EV startups for investments. I don’t think one or two examples will result in the future of how electric vehicles will shape up in India. We will go for EVs. Battery maker Loham is already in Fund II, and we are looking to add 3-4 more,” Gandhi said.

Stride Ventures competes with funds such as Alteria Capital, Trifecta Capital and Blacksoil. A venture debt fund lends money to startups along with equity investors. Venture funds usually invest in late and growth stage companies.

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