<ul><li><keyword id="14074636" type="General" weightage="20" keywordseo="StrideOne" source="Orion">StrideOne</keyword>, which recently raised ₹250 crore as both equity from Elevar Equity and debt from banks, hopes other startups would follow its example.</li><li>The tech-powered digital lender which received its <keyword id="7882527" type="General" weightage="20" keywordseo="NBFC-license" source="Orion">NBFC license</keyword> last year, believes that the time is ripe for their debt-based solutions.</li><li>“When there is concentration of equity around all the time, that’s what is running in their minds all the time. It will create a large awareness of debt products,” <keyword id="14134418" type="General" weightage="20" keywordseo="Abhinav-Suri" source="Orion">Abhinav Suri</keyword>, the co-founder of StrideOne.</li></ul>While most startups are feeling the heat of a funding winter, Delhi-based startup StrideOne sees an opportunity to tap an ecosystem largely untouched by traditional finance. The tech-powered digital lender which received its NBFC license last year, believes that the time is ripe for their debt-based solutions as capital is expected to remain scarce for the next three-four quarters. “This ripple effect (of a funding slowdown) will be felt across the startup ecosystem. We are a startup focussed institution and this provides us with an opportunity to offer our off-balance sheet solutions to them,” <keyword id="13803875" type="General" weightage="20" keywordseo="Ishpreet-Singh-Gandhi" source="Orion">Ishpreet Singh Gandhi</keyword>, co-founder, StrideOne told Business Insider India. The end-to-end digital solutions company also acquired EdCred platform, a SaaS company to improve its technology capabilities which will allow them to grow without hiring more people. “We want to remain unit positive,” said Abhinav Suri, co-founder, StrideOne — which recently raised ₹250 crore as both equity from Elevar Equity and debt from banks. It expects other startups to follow their example. “Some startups also do not want to raise equity at the current valuations but also intend to keep on building the mindspace for their products,” explains Gandhi, who is a former banker like his co-founder Suri. StrideOne is also at an inflection point where startups might beckon an era of debt. “When there is concentration of equity around all the time, that’s what is running in their minds all the time. It will create a large awareness of debt products,” says Suri. <cmsannotation type="cmsannotation" annotationid="Paying influencers, FPOs and drivers" comment="subhead" text="Paying influencers, FPOs and drivers">Paying influencers, FPOs and drivers</cmsannotation> Gandhi and Suri are keen on funding companies such as themselves who are unit positive and intend to keep creating value even in a low-capital regime. Yet, their ‘solutions’ are nothing like straight loans offered by banks. One of their clients is a logistics company with top-tier clients like JSW Steel and Amazon. They need to pay their drivers every month but get paid every 60 days. StrideOne offers solutions that aid the startup like working capital loans but also help them collect from their clients. MyGlamm is yet another client of theirs which needs to pay its many influencers every month, and StrideOne eases the way their cash flow works and allows a growing company such as them to keep growing. Since it is MSME and agritech focussed, StrideOne is also helping many unorganized players into the formal economy. “We are working with the silk value chain, and also FMCG players - startups whose vendors go all the way back to farmers producer organizations or FPO who become our borrower,” explains Suri. Since StrideOne was floated by <keyword id="14134419" type="General" weightage="20" keywordseo="Strides-Ventures" source="Orion">Strides Ventures</keyword>, a venture debt fund — it already has access to a pool of startups in need of specialized financing solutions. “They are plugged into the startup ecosystem which pretty much provides them with zero acquisition cost where they are solving a problem and not pitching sales to them,” says Jyotsna Krishnan, managing partner at Elevar Equity. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="http://www.businessinsider.in/business/news/mitsubishi-electric-to-invest-220-crore-to-set-up-factory-in-maharashtra/articleshow/92054968.cms">Mitsubishi Electric to invest ₹220 crore to set up factory in Maharashtra</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="http://www.businessinsider.in/business/corporates/news/paytm-could-be-entering-a-low-cost-high-profit-margin-regime-say-a-brokerage-firm/articleshow/92054964.cms">PayTM could be entering a low cost-high profit margin regime, say a brokerage firm</a>

This startup has a solution for other startups suffering from funding slowdown

Financial services platform for startups <keyword id="14074636" type="General" weightage="100" keywordseo="strideone" source="Orion">StrideOne</keyword> on Tuesday said it has raised Rs 250 crore via a mix of equity (led by <keyword id="211885" type="General" weightage="80" keywordseo="elevar-equity" source="Orion">Elevar Equity</keyword>) and debt from banks. StrideOne, started by founders of venture debt fund <keyword id="9353689" type="General" weightage="50" keywordseo="stride-ventures" source="Orion">Stride Ventures</keyword>, introduced a startup-led credit distribution model for their supply chains and crossed AUM (asset under management) mark of Rs 200 crore in six months of inception across more than 20 anchor companies. It aims to reduce technological and financing gaps by leveraging the startups' existing ecosystem (vendors, suppliers) to provide credit related and other financial products such as tie-up finance, personal loans, etc. "We have been trying to innovate newer structures that would be further conducive to startups who are looking to expand and grow their businesses," said <keyword id="13803875" type="General" weightage="50" keywordseo="ishpreet-singh-gandhi" source="Orion">Ishpreet Singh Gandhi</keyword>, Founder, StrideOne. StrideOne, an NBFC licensed by the <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword>, said it leverages its team's expertise and deep-rooted understanding of the startup (anchor) ecosystem's financing need-gaps and their data on business performance and cash flows. StrideOne recently acquired tech firm EzCred platform and plans to make more tech-focused acquisitions in 2022. "The accelerated scale displayed by StrideOne reiterates the massive opportunity waiting to be unlocked in the extended startup ecosystem and we are excited to partner with them to bring it to life," said <keyword id="14074637" type="General" weightage="50" keywordseo="jyotsna-krishnan" source="Orion">Jyotsna Krishnan</keyword>, Managing Partner, Elevar Equity. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="http://www.businessinsider.in/business/startups/news/vineeta-singhs-sugar-cosmetics-raises-50-mn-as-it-plans-to-add-30000-stores/articleshow/91906537.cms">Vineeta Singh’s Sugar Cosmetics raises $50 million as it plans to add 30,000 stores</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="http://www.businessinsider.in/india/news/mango-production-down-by-80-in-up-due-to-abnormal-weather-conditions-say-growers/articleshow/91905401.cms">Mango production down by 80% in UP due to abnormal weather conditions, say growers</a>

StrideOne raises ₹250 crore to help reduce technological and financing gaps

<ul><li>An overall growth of 150% was recorded in the payments/salaries to gig workers between October 2021 and September 2022. </li><li>The potential of gig workers can grow further if online retail grows across the country. </li><li>The report predicts that the penetration of online retail was just 5% in 2019 and is expected to grow to 11% by 2024.</li></ul>As more e-commerce platforms enter the 10-minute delivery space, demand for gig workers has not only ballooned – but their monthly earnings have increased too. A report by StrideOne, a tech-enabled NBFC, titled ‘The Startup Economy Report 2022’ says that 25% of gig workers surveyed reported an over 50% rise in their monthly income as compared to their previous mode of livelihood – in the last one year. An overall growth of 150% was recorded in the payments/salaries to gig workers between October 2021 and September 2022, the report said. Majority of the gig workers are engaged in retail trade and sales which includes fast commerce like food and beverage, grocery, medicines delivery etc. Around 56% of the gig workers surveyed previously had full-time employment. “Startups are limiting their hiring of permanent employees. Gig workers have begun to replace these permanent employees,” the report said. The number of companies who shifted to a semi-gig workforce model has increased by 15% since October 2021. The potential of gig workers can grow if online retail expands across the country. The report predicts that the penetration of online retail was 5% in 2019, and is expected to grow to 11% by 2024. Non-farm sectors of <keyword id="3658" type="General" weightage="80" keywordseo="india" source="Orion">India</keyword> have the potential to add over 90 million gig jobs in the longer term, the report predicts. As of now, the <keyword id="3080230" type="General" weightage="20" keywordseo="gig-economy" source="Orion">gig economy</keyword> constitutes 1.5% of the total workforce in India and is expected to expand to 23.5 million by 2024 constituting 4% of the workforce. <cmsannotation type="cmsannotation" annotationid="Startup ecosystem of India" comment="subhead" text="Startup ecosystem of India"><keyword id="15794501" type="General" weightage="20" keywordseo="startup-ecosystem-of-India" source="Orion">Startup ecosystem of India</keyword></cmsannotation> The number of jobs created by the startup ecosystem of India, which is said to be the third largest in the world, grew by 78% CAGR between 2017 and 2022. It is further projected to grow at a CAGR of 24% from 2022-27. The ecosystem altogether created over 2 lakh jobs this year, according to the report. However, several startups like Byju’s, Udaan laid off several employees from its workforce as a part of their retrenchment due to funding winter. “The rapid growth phase and maturity of the ecosystem have unlocked tremendous appetite for scalability, alternate funding options, expansion into the global market and the capacity to enable millions of jobs. This meteoric rise of startups has made India the third largest startup ecosystem in the world and has significantly impacted the Indian economy showcasing the ability to contribute approximately 4-5% to the gross domestic product (GDP) of India,” said Ishpreet Singh Gandhi, founder, StrideOne. Sectors like textile, apparel and logistics however retain the title of being the biggest job creators in the country. The textile industry is said to be the second largest employer in India, which has given direct employment to 5 crore people, and 10 crore people in allied industries. Whereas, logistics sector currently employs 22 million people and is estimated to contribute 11% to the overall GDP of the country. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/indian-railways-backed-spacetech-startup-galaxeye-raises-3-5-million-in-seed-round/articleshow/96250010.cms">Indian Railways backed spacetech startup GalaxEye raises $3.5 million in seed round</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/will-be-lucky-if-we-grow-5-next-year-says-former-rbi-governor-raghuram-rajan/articleshow/96249572.cms">Will be lucky if we grow 5% next year says former RBI governor Raghuram Rajan</a>

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This startup has a solution for other startups suffering from funding slowdown

Katya Naidu

StrideOne raises ₹250 crore to help reduce technological and financing gaps

IANS

A quarter of Indian gig workers’ salaries grew by 50% in the last one year

Vaamanaa Sethi