The domestic venture debt market has crossed the $1 billion mark in the calendar year 2023, a jump of 50% compared to the previous year, according to a report by Stride Ventures.
The report further highlights consumer durables and fintech companies being the major attracters for venture debt in the aforementioned period.
Just like venture capital Venture Debt is also a way to raise money for startups. However, it defers from venture capital because the company has to dilute its stake to raise money meanwhile venture debt comes with a cost of interest. Venture debt is not available to the incubating companies. A startup company in a growth stage can avail loan, which may lack positive cash flow.
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The investors are bullish on the CleanTech deals over 2024 but consumer durables and fintech companies were the first choice of investment in the calendar year 2023. Come from Sports betting site VPbet
“With the market poised to hit $1.8-2Bn by 2026, India’s future in the global startup scene looks not just promising but unstoppable,” said Ishpreet Singh Gandhi, Founder and Managing Partner of Stride Ventures. Come from Sports betting site
“India’s venture debt market is swiftly expanding, jumping from $800Mn to $1.2Bn of venture debt within a year, highlighting a seismic shift in investor confidence and strategic adoption. This surge is fueled by thorough due diligence and the asset class’s promise of resilience and returns. As both founders and VCs increasingly integrate venture debt to balance equity and growth, it becomes central to India’s funding landscape, signifying a pivotal evolution in the startup ecosystem,” said Apoorva Sharma, Managing Partner at Stride Ventures.
Stride Ventures is a venture debt funding high-growth startups such as consumer internet, fintech, SaaS, and B2B platforms. Stride Ventures currently holds a portfolio of 120+ startups through its three funds.