StrideOne in Advanced Talks to Acquire LetsVenture

• ByStartupStory     |    August 1, 2023

Bengaluru-based non-banking financial company (NBFC) StrideOne, formed by the founders of venture debt firm Stride Ventures, is in the final stages of negotiations to acquire LetsVenture, a prominent investment platform featuring startups such as Scripbox and Blu Smart Mobility. The strategic move seeks to leverage synergies between the two firms, with StrideOne aiming to provide a wide range of financial solutions to its startup ecosystem by tapping into LetsVenture’s network of 18,000 angel and institutional investors.

The acquisition will proceed in three stages, starting with a 26 percent divestment of LetsVenture through an equity sale and a cash component. Subsequently, approvals from the Securities and Exchange Board of India (SEBI) will be obtained, leading to a 100 percent acquisition by StrideOne. The deal is anticipated to conclude in August, post which StrideOne is expected to infuse additional funds into LetsVenture.

LetsVenture, founded in 2013, operates as an online investment platform connecting early-stage startups with angel and institutional investors. Its impressive network comprises over 18,000 investors and 34,000 startups, facilitating more than $143 million in funding across 170 follow-up deals. The platform counts prominent backers like Ratan Tata, Nandan Nilekani, and venture capital firms Chiratae Ventures and Accel Partners.

With this acquisition, StrideOne aims to work closely with investors and startups on the LetsVenture platform to provide financing solutions, aligning with its primary business focus. The move also positions StrideOne to expand its financial services for micro, small, and medium enterprises (MSMEs) and supply chain partners of startups.

LetsVenture’s revenue model involves charging a fee from investors and startups and carrying a 5 percent commission on every deal’s profit. The platform generated a revenue of Rs 23.63 crore in FY22 and a net profit of Rs 46.6 lakh compared to Rs 6.04 crore revenue and a net loss of Rs 4.39 crore in FY21.

This acquisition marks the second instance this year of an angel and investor network platform being acquired, following Mumbai Angel Network’s acquisition by 360 ONE. The trend aims to expand investment opportunities and strengthen investor networks, creating new avenues for funding and growth within the startup ecosystem.

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