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StrideOne, the tech-enabled non-banking financial company (NBFC) from the stable of venture debt firm Stride Venture has raised INR 250 Cr in its seed funding round, in a mix of equity and debt.

Elevar Equity led the equity round whilst several Indian banks participated in the debt funding round.

The funds will be used to create financial products that will fulfill the credit and non-credit needs of startups as well as MSMEs.

Six-month-old startup StrideOne is incorporated by Stride Ventures’ founders – Ishpreet Gandhi and Abhinav Suri. The startup is licensed NBFC by the RBI. It offers bespoke financial solutions to MSMEs and the startups’ supply chain partners.

Abhinav Suri, cofounder, StrideOne said, “We have started with credit products for the supply chain and are investing towards building multiple offerings delivered through our technology platform that will be launched over the course of the year.” 

StrideOne said, both the founders have over three decades of experience in the banking sector. They have also formed strong networks within banking and VC segments, and have worked closely with various startups. 

StrideOne claims to have an asset under management (AUM) of INR 200 Cr across 20 startups that are working as anchor companies with it. It aims to double down its growth by FY23. 

StrideOne also runs a lending startup, EzCred, a platform to bolster its tech interface. The startup is looking to make more tech-focussed acquisitions in the present year, according to the statement.

In the digital lending space, StrideOne faces competition from the likes of RevFin, DMI Finance, Kudos Finance and MyShubhLife.

RBI & India’s Digital Lending Scenario

In April, RBI-registered NBFCs were permitted to issue credit cards to users after receiving approval from the central bank. To issue a credit card, the NBFCs would require a registration certificate and a net owned fund of INR 100 Cr. Besides, they also have to comply with other terms and conditions of the central bank. 

Since a host of NBFCs are operating as digital lending institutions, the RBI’s move will spur India’s lending sector.

According to an Inc42 report, India’s fintech sector is anticipated to reach $1.3 Tn by 2025, growing at a CAGR of 31% between 2021 and 2025. Among all sub-sectors, the lending tech is estimated to be holding one of the largest shares in the fintech space with 47% ($616 Bn) by 2025.

In April, lending tech startup MyShubhLife secured $13.18 Mn (INR 100 Cr) from Gojo & Company whilst EV-focused fintech lending startup RevFin bagged INR 100 Cr from Northern Arc, LiquiLoans, UK Charity Shell Foundation, and other investors, in March this year. 

In January, Mumbai-based NBFC DMI Finance received $47 Mn from Sumitomo Mitsui Trust Bank, NXC Corporation and New Investment Solutions.