India's Venture Debt Market Achieves 58% CAGR, Reaches $1.23 Billion In 2024
The reports also studied the view of start-up founders towards VD.
(Representative image. Source: Envato)
India's venture debt market grew at a compound annual growth rate of 58% during 2018 to 2024 to reach $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 market was around $80 million in 2018. Bengaluru led the growth with 40% 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 $1.23 billion in 2024, this report expands its focus to global markets. Venture debt across the world is growing at a 14% 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% 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% 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% 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% of deal value is concentrated in the fintech segment, 25% in consumer sectors and 18% 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 $447 million.
