January 5, 2025: the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce & Industry, has joined forces with Stride Ventures, a leading venture debt firm. This collaboration aims to supercharge the growth of Indian startups, offering a strategic combination of financial support, mentorship, and global market access. The partnership is expected to be pivotal in driving innovation, empowering entrepreneurs, and positioning India as a key player in the global startup arena.
The collaboration comes at a crucial time when the Indian startup ecosystem is witnessing robust growth, despite challenges in global markets. By targeting high-growth sectors like manufacturing, cleantech, B2B, and consumer goods, DPIIT and Stride Ventures plan to harness the full potential of Indian startups, enabling them to scale globally and create impactful solutions that resonate on the world stage.
Empowering Startups with Funding and Strategic Support
The core focus of this partnership is to provide startups with the necessary tools to expand beyond India’s borders. Stride Ventures, with its extensive experience in venture debt, will not only offer funding but also provide mentorship and guidance to early-stage companies. By collaborating with DPIIT, Stride Ventures intends to support startups with targeted programs designed to enhance their growth trajectory and accelerate their global outreach.
Ishpreet Singh Gandhi, Founder and Managing Partner of Stride , commented on the collaboration, saying, “This partnership is a major step towards realizing our vision of empowering Indian entrepreneurs to build globally competitive companies. Together, with DPIIT’s support, we can offer startups the capital, guidance, and global market access they need to thrive.”
DPIIT, which has been instrumental in shaping India’s startup policies, views this partnership as a strategic alignment with the government’s broader economic agenda. According to Sanjiv, Joint Secretary of Startup India, the collaboration will reinforce India’s commitment to innovation and entrepreneurship. “This initiative will drive both innovation and economic growth, aligning with our goals of creating a thriving entrepreneurial ecosystem that can contribute significantly to India’s global economic standing,” Sanjiv stated.
Stride Ventures , DPIIT Pact: Targeting Tier-2 and Tier-3 Startups
A notable aspect of this collaboration is its emphasis on startups from India’s tier-2 and tier-3 cities. These regions, often overlooked in mainstream venture funding, are home to a growing pool of talented entrepreneurs who require support to scale their businesses. The DPIIT-Strides Ventures partnership aims to provide these startups with access to a network of mentors, investors, and resources that will help them compete on a global scale.
Through specially curated programs and initiatives, such as the Bharat Grand Challenge, the collaboration seeks to promote entrepreneurship in less developed regions, ensuring that innovation is not confined to metropolitan hubs. By offering targeted guidance and funding to startups from these cities, DPIIT and Stride Ventures hope to democratize access to opportunities and create a more inclusive startup ecosystem across India.
Aligning with National Strategies
This collaboration is also closely tied to the government’s flagship programs, including Make in India and Make for the World. The objective is to build globally competitive startups that not only contribute to India’s domestic economy but also make a significant impact in international markets. By providing Indian startups with the necessary resources to scale globally, DPIIT and Stride are effectively supporting the government’s vision to turn India into a global innovation hub.
“We are particularly excited about our focus on high-growth sectors such as cleantech, manufacturing, and B2B,” said Gandhi. “These areas not only have immense global demand but also align with India’s long-term economic goals. Through this partnership, we intend to identify and nurture startups that have the potential to revolutionize industries globally.”
Expanding Access to Venture Debt
One of the unique aspects of this partnership is its emphasis on educating startups about venture debt as a viable funding option. Venture debt, which is often overlooked by early-stage companies, offers startups an alternative to traditional equity funding. It can be particularly beneficial for businesses that need capital for expansion without diluting ownership.
This initiative will help startups understand the diverse range of fundraising options available, empowering them to make informed decisions about how to finance their growth. By introducing venture debt into the mix, DPIIT and Stride Ventures aim to create a more flexible, resilient financial ecosystem for Indian startups.
The Path Ahead
The DPIIT-Strides partnership marks a significant step forward in India’s journey to become a global startup powerhouse. The combination of government support, venture debt, strategic mentorship, and global market access is poised to accelerate the growth of Indian startups and help them unlock new opportunities.
With a billion-dollar commitment to nurturing Indian startups, Stride is well-positioned to drive the success of this collaboration. Meanwhile, DPIIT’s ongoing efforts to foster a conducive environment for startups through policies, funding, and mentorship will play a crucial role in ensuring the sustained success of this initiative.
As this collaboration unfolds, Indian startups are set to gain the tools and resources they need to not only scale within India but to make a lasting impact on the global stage.
