StrideOne, a financial services platform for start-ups launched by the founders of venture debt fund Stride Ventures, has raised Rs 250 crore via a mix of equity, led by Elevar Equity, and debt from top Indian banks.
The financial services firm focuses on providing customised financial and credit solutions to MSMEs and supply chain partners of various start-ups. StrideOne has built a novel credit distribution model that provides access to carefully customised growth capital for MSMEs and entrepreneurs, especially focusing on markets with low credit penetration.
Using the embedded finance model, StrideOne will offer a direct line of credit to vendors, suppliers and other businesses that work directly with high-growth tech start-ups. The company uses its own NBFC licence for modelling these loan services.
With its new credit distribution model for start-ups, StrideOne also enables its lending partners to access previously untapped markets and vendors with minimal credit history. Loans are typically underwritten using past history of transactions with vendors, suppliers and partners of start-ups, allowing lenders to better calculate credit repayment quality or creditworthiness. Doing so has enhanced StrideOne’s risk efficiency, keeping the customer acquisition cost at zero. StrideOne said that it has witnessed a healthy growth momentum, becoming profitable within just six months of operations and accumulating an AUM of Rs 200 crore.