India's Venture Debt Surge: From Niche to Mainstream

India's venture debt market, growing at a CAGR of 58% from 2018 to 2024, reached USD 1.23 billion. Venture debt has become a mainstream asset, crucial for runway extension, pre-IPO financing, and asset-backed business models. Fintech, cleantech, and consumer sectors dominate the space.

The venture debt market in India has witnessed significant growth, expanding at a CAGR of 58% from 2018 to 2024 to reach USD 1.23 billion, according to a Stride Ventures and Kearney report.

Bengaluru has emerged as a leader, accounting for 40% of these deals, followed by Delhi NCR and Mumbai. Globally, venture debt is transitioning from a niche instrument to a mainstream asset class.

Start-up founders increasingly favor venture debt for runway extension, working capital management, and pre-IPO bridge financing. Fintech, cleantech, and consumer tech sectors are particularly active, with fintech leading in value, driven by the selective nature of equity capital funding.

(With inputs from agencies.)