Stride Ventures aims to enable up to USD 1 bn investment in cleantech

New Delhi: Venture debt fund Stride Ventures is aiming to enable investments ranging from USD 500 million to USD 1 billion in cleantech globally over the next 4-5 years, according to a top company official.

The Gurugram-based firm, which has crossed USD 120 million investment in India's climate-focused startups, is pushing for a shift towards engaging international investors, while simultaneously strengthening its Indian portfolio in the new financial year.

"Our strategic expansion into USD Funds last year positions us as a globally recognised venture debt fund, committed to fostering innovation, accelerating entrepreneurship, and supporting startup growth," Stride Ventures Co-founder and Managing Partner, Ishpreet Singh Gandhi told PTI in an e-mailed response in the company's plans for the road ahead.

He said, "This approach aligns with the trend of domestic VC funds seeking international capital, a direction we are actively exploring. Our existing portfolio investment is valued at over Rs 4,000 crore, signaling a trajectory of significant growth." Looking ahead, Gandhi said, "Stride aims to enable an investment of USD 500 million to USD 1 billion in cleantech over the next 4-5 years, underscoring our commitment to sustainable development." On the current funding trend in India, he said it has predominantly focused on domestic investors, with approximately 95 per cent of limited partner (LP) bases being local.

"Stride Ventures is pioneering a shift towards engaging international investors, simultaneously strengthening our Indian portfolio as we embark on the new financial year," Gandhi said.

When asked about the company's interest in the EV ecosystem, Gandhi said, "Our commitment is evident in our deep EV portfolio and ongoing support for the EV ecosystem. The excitement among entrepreneurs and government backing for EVs is strong, aimed at transforming India's mobility." The company has made strategic investments in firms like Battery Smart, Lohum, BluSmart, MoEVing, Solar Square, Euler Motors, ChargeZone, Oben Electric, Intangles, and Solar Ladder under its cleantech sector focus.

Besides, in February 2024, African mobility fintech startup Moove raised USD 10 million in its first external debt funding round from Stride Ventures to expand its presence in India.

Stride Ventures had also partnered with Abu Dhabi's tech ecosystem, Hub71 to back startups in Abu Dhabi.

Citing the company's 'India Venture Debt Report', he said, "21.6 per cent of stakeholders predict cleantech will lead in venture debt funding in 2024".

He, however, pointed out that "challenges like the EV-to-charging station ratio in India (135:1) demand innovative financing solutions, which are vital for evolving EV applications and reducing costs compared to ICE vehicles." On specific areas of focus for investment in the future, he said, "Consumer and fintech sectors were the ones that received maximum deals as well as amount of Venture Debt funding in 2023, we feel that these two sectors will continue to do well." The startup ecosystem in India is high on cleantech for 2024, while fintech and consumer sectors remain highly touted sectors, Gandhi added.

Stride Ventures said its portfolio companies have so far collectively achieved significant environmental impact, including the saving of approximately 90,000 tonnes of CO2, covering 521 million electric kilometres.

The company has a portfolio of over 140 startups through its three funds.