Stride Ventures stops short of hard cap to raise $200 mn venture debt fund

 Stride Ventures stops short of hard cap to raise $200 mn venture debt fund

Stride Ventures said Wednesday it has marked the final close of its second venture debt fund, Stride Ventures India Fund II, after securing commitments of $200 million (about Rs 1,600 crore).

This means the firm exercised the greenshoe option but stopped short of its hard-cap.

Stride had marked the fund’s first close after securing commitments of Rs 550 crore ($74 million then) in a little more than two months after hitting the road. It was eyeing a corpus of Rs 1,000 crore for the fund with a greenshoe option to scoop up an additional Rs 875 crore. This could have made it India’s largest venture debt fund.

The pole position is now held by Alteria, which hit a final close for its second fund with a Rs 1,800-crore corpus (then $242 million).

Separately, Trifecta is looking to raise as much as Rs 1,500 crore, including a Rs 500 crore greenshoe portion, for its third venture debt fund. InnoVen had marked the first close of its new venture debt fund at Rs 740 crore last year and was aiming at as much as Rs 2,000 crore at final close.

Meanwhile, Strides said that the second debt fund—similar to the first fund—witnessed participation from leading banks, marquee family offices, corporate treasuries, sovereign funds, PE funds, insurance firms, and HNIs.

The firm had finished fundraising for its debut vehicle last year after collecting more than Rs 350 crore. However, it deployed a total of Rs 400 crore as it got back some of the money it had lent previously.

The venture debt fund is sector-agnostic, and has investments in sectors such as consumer, fintech, agri-tech, B2B commerce, health-tech, B2B SaaS, mobility and energy services.

The firm says it has created a well-diversified portfolio by sanctioning over Rs 1,600 crore in more than 70 companies across sectors to date.

The fund’s portfolio includes CredAvenue, MyGlamm, Zepto, BluSmart, Uni, Upstox, WayCool, MensaBrands, MediBuddy, Wiz Freight, Perfios, Moneyview, VideoVerse, Chalo and Groyyo.

“Stride Ventures has already committed a large portion of the fund in industry leading startups and our goal is to continue being a preferred lender while developing innovative alternate financing solutions for founders,” said Ishpreet Singh Gandhi, founder and Managing Partner.

Apoorva Sharma, Partner at Stride Ventures, said: “The current economic environment has made growing businesses more amenable to debt transactions than ever before, giving India’s venture lending industry a chance to grow and evolve.”

Vivek Sinha

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