Revolutionizing Startup Financing: The Rise of Private Debt

The private debt market in the country is expanding, with venture debt hitting USD 1.3 billion in 2025, marking a structural shift in startup financing. Key hubs like Delhi-NCR and Bengaluru lead the activity. Fintech dominates both venture debt and growth credit funding, highlighting a significant trend.

The country's private debt market is experiencing robust growth, highlighted by venture debt reaching USD 1.3 billion, signaling a major change in how startups are financed, a Stride Ventures report reveals.

Fintech remains the top sector for capital deployment, with Delhi-NCR and Bengaluru as leading hubs in venture debt deals. Growth credit is gaining traction, especially for late-stage companies, as firms look toward expansion and acquisitions.

The report suggests a significant increase in venture debt over the past decade, with a 37% CAGR, accounting for 9% of venture capital annually. This trend indicates growing founder acceptance of non-dilutive financing and highlights a promising future for private debt in startup spaces.

(With inputs from agencies.)