The Department for Promotion of Industry and Internal Trade (DPIIT) has teamed up with venture debt firm Stride Ventures to address funding requirements of start-ups.

The collaboration aims to integrate financial backing with strategic mentorship and market access, creating significant opportunities for emerging businesses.

DPIIT joint secretary Sanjiv Singh emphasised the macroeconomic benefits, noting that Stride Ventures would curate programmes and participate in initiatives such as the Bharat Grand Challenge to foster entrepreneurship, innovation, and investment.

“This partnership aligns with India’s broader economic goals, including the ‘Make in India’ and ‘Make for the World’ strategies,” Sanjiv said.

Stride Ventures’ founder and managing partner Ishpreet Singh Gandhi described the partnership as a milestone in nurturing India’s start-up ecosystem.

“Our billion-dollar commitment, combined with this collaboration, underscores our dedication to empowering start-ups to create impactful, globally resonant solutions,” Gandhi said.

The partnership will focus on identifying start-ups with high growth potential, particularly those in tier-2 and tier-3 cities.

These companies will receive funding, mentorship, market access, and policy support, alongside access to a global mentor network to aid in scaling up their operations.

The initiative will also promote awareness of diverse fundraising tools, including venture debt, to help start-ups achieve their growth ambitions, DPIIT added.

The Inc42’s Annual Funding Report 2024 showed that the year saw a 31 per cent
YoY increase in seed-stage funding, while growth and late-stage funding were up 21 per cent and 25 per cent, respectively.

The seed-stage start-ups raised $893 million during the year, registering an increase of 31 per cent from the $681 million a year before.

In 2024, late-stage start-up funding rose 25 per cent YoY to $7 billion across 150 deals. With this, the Indian start-up funding has now settled at pre-Covid-19 levels.