India’s Stride Ventures Marks First Close Of Its GCC Fund

Stride Ventures has announced the first close of its Abu Dhabi Global Market (ADGM) Fund V, as it eyes over US$500 million in assets under management across the Gulf region by 2026. 

The India-headquartered venture debt firm, which has deployed over $1.2 billion globally across more than 170 startups, is expanding its presence in the GCC as interest in venture debt/growth debt (VD/GD) grows among regional founders.  

VD and GD are both forms of non-dilutive loan financing used by startups, but they serve different stages of a company’s lifecycle. While VD supports early-stage, venture capital-backed startups with runway and capital needs, GD is aimed at later-stage, revenue-generating firms looking to scale without giving up equity. 

Stride Ventures’ new ADGM-based fund is part of its strategy around VD/GD, with the firm having executed transactions ranging from $10 million to $15 million in the region, as well as a current deal pipeline of $110 million across sectors such as fintech, healthtech, logistics, and climate tech. 

In an interview with Inc. Arabia, Fariha Ansari Javed, Partner for the GCC region at Stride Ventures, described the new fund as a strategic response to the region’s evolving financing needs, while also supporting the enterprise’s broader plan to adapt its international underwriting model to the region, while collaborating with local stakeholders. “Setting up a dedicated ADGM fund enables us to directly address this market opportunity,” Javed said. “ADGM offers a proactive regulatory environment and international-grade financial infrastructure, making it an ideal hub to develop and distribute innovative venture debt products tailored to the GCC region’s unique cultural and legal frameworks.” 

According to Javed, the GCC and the MENA region at large is entering a key phase in the maturation of its venture ecosystem, with growing demand for VD/GD solutions. “A defining characteristic of this evolution is the region’s tilt toward hybrid VD/GD models, designed for growth- and late-stage startups, reflecting a clear preference for mezzanine-type financing that blends fixed-term debt with equity-linked flexibility,” she said. “According to Stride Ventures’ Global Venture Debt Report 2025, the VD/GD market in the GCC has grown at a compounded annual growth rate (CAGR) of 54 percent from 2018 to 2024, well above the global average of 14 percent, highlighting both market momentum and a widening demand for alternative capital.” 

Javed also pointed out the Global Venture Debt Report 2025 had indicated that over 20 percent of VC portfolios in the region are already suited for venture or growth debt, with many funds prepared to guide their portfolio companies on how and when to leverage these instruments based on their stage of growth. Looking ahead, 39 percent of surveyed respondents anticipate moderate growth of 3 percent to 10 percent in the VD/GD market in 2025, signaling continued confidence in the region’s upward trajectory. 

What sets Stride Ventures apart in this growing market, Javed said, is its tailored approach to deal structuring. “Our deal structuring is highly customized—not just by stage, but by use case,” she said. “We fund a wide spectrum of growth needs, including inventory buildup, acquisition financing, receivables financing, runway extension, order book discounting, capital expenditures (CAPEX) and project financing, warehouse and asset-based financing, onward lending, and even first loan default guarantee support.” 

Stride Ventures also offers fully Shariah-compliant instruments, an area it considers a strength rather than a limitation. “Most of our portfolio companies in the GCC actively prefer Shariah-based structures, which allows us to offer solutions that are both culturally relevant and commercially effective,” Javed shared. “From an underwriting standpoint, our investment discipline remains unchanged and adheres to global standards.” And this balance of global expertise with regional nuances is core to how Stride operates, Javed noted. “We’re able to structure flexible, Shariah-compliant instruments that support high-growth companies while remaining aligned with local regulatory and cultural frameworks,” she said. 

Javed also highlighted broader shifts shaping the region’s capital landscape. “The GCC region is undergoing a rapid evolution in its financing landscape, with VD/GD emerging as vital instruments for high-growth startups,” Javed explained. “This transformation is underpinned by a maturing venture capital ecosystem, supportive government initiatives, rising institutional participation, and a growing need for customized capital solutions that enable startups to scale without dilution.” 

“As high-growth startups scale and more companies progress to Series C and beyond, there is a clear need for diverse funding options beyond equity,” Javed added. “As the venture capital market in the region continues to mature, VD/GD are emerging as complementary instruments, providing structured capital that supports growth while preserving founder ownership. Founders are actively evaluating venture debt for its flexible repayment terms and ability to extend runway without dilution.” 

This appetite is further supported by macro signals. “Sovereign wealth funds continue to back the local innovation economy, regulatory stability is improving, and private credit flows into off-balance sheet special purpose vehicle (SPV) structures are expanding, creating natural entry points for venture debt,” Javed said. 

Javed emphasized that Stride’s investment philosophy remains sector-agnostic and founder-focused, but noted that fintech—especially in areas like SME lending and buy-now-pay-later (BNPL) models—has shown strong momentum in both the UAE and Saudi Arabia. “With high annual percentage rates (APRs) and low net delinquencies, it's likely that fintech will be a priority sector for us in the region,” she noted. 

For entrepreneurs considering VD/GD as a pathway to growth for their enterprises, Javed offered a word of guidance. “For founders used to equity-heavy fundraising, it’s important to understand that venture debt offers a more tailored, equity-efficient way to finance growth,” she said. “These structures enable prudent scale-up journeys, while preserving ownership and providing flexibility around capital usage.” Plus, as the GCC’s startup ecosystem continues to mature, Javed emphasized the importance of promoting more diverse fundraising approaches—especially for innovation-driven and capital-intensive businesses.  

“At Stride Ventures, we actively work with founders to build awareness of venture debt as a complementary instrument to equity,” Javed said. “We’ve conducted workshops across the region to explain venture debt frameworks, common use cases, and how founders can leverage structured capital without diluting stake too early. We’re always happy to guide founders through this journey, helping them understand how venture debt can accelerate growth, optimize capital efficiency, and align with long-term business goals.” 

Pictured in the lead image is Fariha Ansari Javed, Partner for the GCC region at Stride Ventures. Image courtesy Stride Ventures.