Inside India’s Venture Debt Funding Boom

(Inc42, 28 November 2022) Inside India’s Venture Debt Funding Boom

by Sanket Sinha, Global Head of Asset Management and Ankit Agrawal, Director for Venture Debt at Lighthouse Canton

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• A liquidity crunch and heightened focus by VCs on valuations and profitability have triggered the need for an alternative asset class to meet the financing requirements of fast-growing startups
• Venture debt, which has been present in India only for the last 5-7 years, has now emerged as the preferred way for startups to access capital quickly
• Indian startups raised about INR 4,500 Cr of venture debt last year, more than twice the amount raised in the year before

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A liquidity crunch and heightened focus by VCs on valuations and profitability have triggered the need for an alternative asset class to meet the financing requirements of fast-growing startups Venture debt, which has been present in India only for the last 5-7 years, has now emerged as the preferred way for startups to access capital quickly Indian startups raised about INR 4,500 Cr of venture debt last year, more than twice the amount raised in the year before The funding winter has....

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