Watch | Stride Ventures secures PIF backing as venture debt gains traction among Indian startups

Global investors are increasingly turning their attention to India’s venture debt ecosystem as startups seek alternative sources of growth capital without diluting equity.

Venture debt platform Stride Ventures has secured backing from the Public Investment Fund (PIF), marking a milestone for India-born private credit platforms and signalling rising global confidence in the country’s startup financing landscape.

Speaking to CNBC-TV18, Fariha Ansari Javed, Partner at Stride Ventures, said the investment reflects growing recognition among global institutional investors of both India’s startup ecosystem and the venture debt asset class.

“Stride is one of the leading and largest lenders to the startup ecosystem in India. We have a proven track record in India, and that’s something that is being recognised globally, specifically by sovereign investors,” she said.

The development highlights a broader shift in the way global capital views India-origin investment platforms. According to Javed, international investors such as sovereign wealth funds, asset managers and insurance companies are increasingly allocating capital to funds that originate in India but are scaling globally.

For much of the past decade, startup funding in India was dominated by equity capital. However, founders are now increasingly exploring venture debt and private credit as a way to finance expansion while retaining ownership.

“We are very founder-first, and we are seeing a huge shift in founder mindset as well. Previously, everyone was just raising equity, but now founders are thinking more about non-dilutive capital for acquisitions and operating expenses,” Javed said.

Stride Ventures has enabled over $1.6 billion in credit across nearly 200 companies since its founding in 2019, including several unicorns. The firm currently operates seven funds across multiple currencies.

The growing demand for venture debt mirrors a global trend where private credit is gaining traction alongside private equity as an important source of capital for high-growth companies.

As India’s startup ecosystem matures and companies expand into global markets, Javed said venture debt providers are also scaling internationally, reflecting the increasing institutionalisation of the asset class and the global credibility of India-born investment platforms.