India's venture debt market grew at a compound annual growth rate of 58 per cent during 2018 to 2024 to reach USD 1.23 billion last year, a Stride Ventures and Kearney report said on Wednesday. According to the Global Venture Debt Report 2025 released by Stride Ventures , the venture debt (VD) market was around USD 80 million in 2018.
Bengaluru led the growth with 40 per cent of total venture debt deals followed by Delhi NCR and Mumbai.
"As India's venture debt market grows from being nominal six years ago to USD 1.23 billion in 2024, this report expands its focus to global markets. Venture debt across the world is growing at a 14 per cent CAGR, advancing from being a niche instrument to a mainstream asset class, empowering entrepreneurs to grow sustainably," Stride Ventures, Founder and Managing Partner, Ishpreet Singh Gandhi said.
The reports also studied the view of start-up founders towards VD.
According to the report, 61 per cent of founders surveyed highlighted VD as a preferred tool for runway extension and working capital management, helping startups navigate periods between equity rounds without dilution.
Additionally, 41 per cent of respondents cited debt's growing role in pre-IPO bridge financing, enabling companies to scale and stabilize operations ahead of public listings and 37 per cent of founders emphasized VD's importance for inventory and CAPEX financing, reflecting its relevance for asset-backed business models that require flexible, customized solutions.
"Our data reveals a clear uptick in demand from growth-stage companies, especially in sectors like fintech, cleantech, and consumer tech. As equity capital becomes more selective, venture debt is playing a pivotal role in bridging funding gaps while empowering founders to retain strategic control," Stride Ventures Managing Partner, Apoorva Sharma said.
According to the report, 37 per cent of deal value is concentrated in the fintech segment, 25 per cent in consumer sectors and 18 per cent in the cleantech space in 2024.
The consumer segment recorded 81 deals which was the highest in terms of numbers but fintech led in terms of value with deals worth USD 447 million.
Bengaluru led the growth with 40 per cent of total venture debt deals followed by Delhi NCR and Mumbai.
"As India's venture debt market grows from being nominal six years ago to USD 1.23 billion in 2024, this report expands its focus to global markets. Venture debt across the world is growing at a 14 per cent CAGR, advancing from being a niche instrument to a mainstream asset class, empowering entrepreneurs to grow sustainably," Stride Ventures, Founder and Managing Partner, Ishpreet Singh Gandhi said.
The reports also studied the view of start-up founders towards VD.
According to the report, 61 per cent of founders surveyed highlighted VD as a preferred tool for runway extension and working capital management, helping startups navigate periods between equity rounds without dilution.
Additionally, 41 per cent of respondents cited debt's growing role in pre-IPO bridge financing, enabling companies to scale and stabilize operations ahead of public listings and 37 per cent of founders emphasized VD's importance for inventory and CAPEX financing, reflecting its relevance for asset-backed business models that require flexible, customized solutions.
"Our data reveals a clear uptick in demand from growth-stage companies, especially in sectors like fintech, cleantech, and consumer tech. As equity capital becomes more selective, venture debt is playing a pivotal role in bridging funding gaps while empowering founders to retain strategic control," Stride Ventures Managing Partner, Apoorva Sharma said.
According to the report, 37 per cent of deal value is concentrated in the fintech segment, 25 per cent in consumer sectors and 18 per cent in the cleantech space in 2024.
The consumer segment recorded 81 deals which was the highest in terms of numbers but fintech led in terms of value with deals worth USD 447 million.
