Stride Ventures expects final close of second fund within next two months
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,” said Ishpreet Singh Gandhi, founder and managing partner of the venture capital firm.
Exercising the green shoe option allows a venture capital or private equity firm to raise capital beyond its initial target corpus, especially when demand for the fund increases among investors.
“With equity financing becoming more stringent and founders also realizing how beneficial debt funds are and its many use cases, we are seeing strong 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 Rs 350 crore fund in 2021.
Fund II was established in May 2021. The company announced the first closing of Fund II in August last year.
“We already have around 30 companies in Fund II and at the time of closing there will be around 50. As the token size was small, most of the capital raised is disbursed and deployed,” Gandhi said.
The use case for debt funds has expanded in India from working capital needs to investments and inorganic acquisition finance, and Stride Ventures is looking to create a separate fund for blockchain finance. supply.
“We have developed a new product that will focus entirely on supply chain finance. It will be under Stride, and it is currently in stealth mode,” Gandhi said.
Stride Ventures’ portfolio includes startups and companies from different sectors such as consumer, healthcare and e-commerce.
“Consumer, healthcare and commerce cover 60% of our portfolio while fintech, edtech and agritech have multiple use cases, we are exploring this segment now and will add more companies,” Gandhi said. .
Stride Ventures adds about 5-6 new ventures and closes $15-20 million in new penalties each month.
“Across the mainstream segment, we added MyGlamm, we’re doubling down on Sugar Cosmetics. We are adding 4-5 new companies to the portfolio, such as consumer robotics company, Miko and other e-commerce companies,” he said.
The venture capital firm is also actively seeking to invest in more electric vehicle (EV) and EV-related companies.
“We are actively talking to EV startups for investments. I don’t think one or two cases will translate into how EVs will shape in India in the future. We will embrace EVs. Battery maker Lohum is already in Fund II, and we are looking to add 3 or 4 more,” Gandhi said.
Stride Ventures competes with funds such as Alteria Capital, Trifecta Capital and Blacksoil. A venture capital fund lends money to startups alongside equity investors. Venture capital funds typically invest in late-stage and growth-stage companies.