Stride Ventures expects the second fund to close in the next two months

Bangalore: Stride Ventures it is expected to reach the final closure of its second fund in the next two months.

The Fund II has a corpus of Rs 1,000 crore, with a green shoe option of 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 much of the green shoe option “, Ispreet Singh Gandhifounder and managing partner of venture debt companyShe said.

Exercising the green shoe option allows a venture capital or private equity firm to raise capital beyond its original target corpus, especially when the fund’s demand increases among investors.

“With equity financing becoming more rigorous and with founders also realizing how beneficial debt funds and its broad use cases are, we are seeing a lot of demand,” Gandhi told ET.

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

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

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

“We already have around 30 companies in Fund II and by the time we close they will be around 50. Since the token size was small, most of the capital raised is being disbursed and distributed,” Gandhi said.

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

“We have come up with a new product that will focus entirely on supply chain financing. It will be under the Stride scope, and it is in stealth mode right now, ”Gandhi said

Stride Ventures’ portfolio includes startups and companies from different sectors such as consumers, healthcare and e-commerce.

“Consumer, healthcare and commerce cover 60% of our portfolio, while fintech, edtech and agritech have different use cases, we are exploring that segment now and will add more companies,” Gandhi said.

Stride Ventures adds about 5-6 new companies and closes $ 15-20 million in new penalties each month.

“Across the consumer segment, we added MyGlamm, we are doubling down on Sugar Cosmetics. We are adding 4-5 new companies to the portfolio such as the consumer robotics company, Miko and other e-commerce companies, “she said.

The venture capital debt firm is also actively looking to invest more electric vehicle (EV) e Companies related to electric vehicles.

“We are actively talking to electric vehicle investment startups. I don’t think one or two cases will translate into the future of how electric vehicles are formed in India. We embrace electric vehicles. Battery maker Lohum 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 stage and growth stage companies.

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