8vdX Bags Funding From Y Combinator For Its Venture Debt Marketplace For Startups

8vdX, a digital venture debt provider for investors and startups, has raised over $3 Mn in a seed funding round from Y Combinator, GMO Venture Partners, Zillionize, Cathexis, Grant Park, Asymmetry Ventures, Earlsfield Capital Partners, and Fox Ventures.  

The round also saw participation from angel investors including Vikram Chachra from CarWale and Kevin Moore from ZoomCar. 

The funds will be used for increasing 8vdX’s lending capacity and expanding its footprint across the globe.

8vdX is currently a part of Y Combinator’s winter batch of 2022, as shared by the company. 

Founded in 2021 by Ravi Chachra, who is a brother of 8i Ventures’ founder Vikram Chachra, and Vijay Lavhale, 8vdX is an online venture debt marketplace that offers venture debt funding to startups. It primarily offers capital to startups participating in Y Combinator cohorts thereby, supporting them for Demo Day where startups pitch to investors. Besides, it also offers venture funding to early and growth-stage startups across various sectors. 

8vdX writes off cheques between $150K to $1Mn. To avail venture debt loans, startups have to fill out an application on its platform and share required documents for background checks and due diligence. The entire process of analyzing an application takes 24 to 48 hours and following this, they receive money.

As per the statement, 8vdX is looking to set up an India-focussed alternative investment fund (AIF) to invest in startups outside of Y Combinator. It has disbursed $2.8 Mn as venture capital to 17 startups in India and abroad over the last three months. 

8vdX claims to have an asset under management (AUM) of $5 Mn in the last three months. 

8vdX also claims to grow 25% every week. It is aiming to offer venture funding to 250 startups and have an asset under management (AUM) of $75 Mn in the next 18 months.

According to an Inc42 report, Indian startups witnessed a 2X increase in venture debt funding from $217 Mn (2019) to $427 Mn (2020).

A slew of venture debt funding rounds have occurred in the past few months. A few days ago, fintech startup Karbon Card secured INR 55 Cr from Northern Arc Capital, UC Inclusive Credit (UCIC) and Oxyzo Financial Services. 

In April, Microsoft Corporation participated in B2B startup Udaan’s $250 Mn debt funding round. The round comprised $200 Mn via convertible note and $50 Mn through debt. In March, fintech startup Aye Finance raised INR 75 Cr in a debt funding round from Triple Jump BV and Northern Arc.  

In the last two years, several venture debt funds have also been launched by venture capitalists. Trifecta Capital’s Trifecta Venture Debt Fund – III, Anicut Capital’s AIF Grand Anicut Fund II, Alteria Capital’s Fund II, and  N+1 Capital’s maiden debt fund are some of the debt funds.