👉 Before it’s everywhere, it’s in FWDstart. Subscribe for $99 and save 17% on the first year to support independent reporting on the MENA tech and startup ecosystem
This episode is the first in a five-part series filmed on the ground in Saudi Arabia in partnership with COLABS, exploring the founders, operators and ideas shaping the Kingdom’s startup ecosystem.
Listen or watch now on
YouTube, Spotify, or Apple Podcasts
Ishpreet Singh Gandhi began financing startups at IDFC in India in 2015, long before venture debt had become an established part of the country’s startup ecosystem. He went on to found Stride in 2019, building a credit investment business that has since enabled more than $1 billion in financing for startups and growth-stage companies.
That experience in India is now underpinning Stride’s expansion into the Gulf, with Saudi a particular focus. The firm has already led erad’s $33 million debt round, provided BRKZ with up to $30 million in growth debt, participated in Saudi-based Merit Incentives’ $28 million Series B, and supplied venture debt as part of Dubai-based Enhance’s $18.2 million financing.
We get into how venture debt actually works, why founders can end up unnecessarily diluting their ownership, and how borrowing to fund working capital, capital expenditure or acquisitions can change the economics of scaling a company.
We also dig into what Stride has learned from financing hundreds of businesses across India's startup cycles, how that experience translates to the Gulf, why equity investors can benefit from having lenders involved, and the risks that come with introducing debt into the capital stack.
And there's a broader conversation about what separates successful founders from the rest, why the most difficult funding cycles can be the most revealing, what it'll take for more Gulf startups to reach the public markets, and whether the growing number of VC firms entering private credit is necessarily a good thing.
We cover:
Why founders default to raising equity and when debt might make more sense
How venture debt works, from working capital and CapEx to dilution and repayment risk
What equity investors stand to gain, and lose, when lenders enter the capital stack
Building Stride in India and bringing its credit playbook to Saudi Arabia and the wider GCC
Why private credit remains underpenetrated in the Gulf and where Ishpreet sees the opportunity
What India's startup journey reveals about founder resilience, funding cycles and the road to IPO
Timestamps
00:00 – Introduction
00:56 – From startup lending to building Stride
02:25 – Why debt funds work differently from VC funds
07:03 – Educating founders on venture debt
10:35 – Bringing India's lending playbook to the Gulf
13:25 – Why private credit is underpenetrated in the GCC
16:07 – Why Stride expanded into Saudi Arabia and the Gulf
18:57 – Building relationships with Saudi institutional investors
21:42 – When debt improves an equity investor's position
25:00 – What separates the best founders
28:18 – What will it take for more Gulf startups to IPO?
31:16 – Should VC firms be launching venture debt funds?
33:15 – Stride's long-term ambitions
Subscribe to the show
I’d love it if you’d subscribe and share the show. Your support makes all the difference as we try to bring more curious minds into the conversation.
For inquiries about sponsoring the podcast, email [email protected].
Support our work and get access to exclusive insights
Independent reporting, deep dives and analysis on the companies, investors and markets shaping technology across the Middle East and North Africa
