Fintech’s new fuel: Venture debt takes centrestage amid a funding crunch
Live MintAs venture capital investments into India’s financial technology sector plunged this year amid stringent regulatory oversight, fintech companies found another funding source become more readily available: venture debt. Consumer startups followed, raising $459 million in venture debt across 55 rounds this year, marking a 10% growth from the $416.4 million of venture debt they raised in 2023. Sharma said credit flows by venture debt funds this year were directly linked to overall venture capital activity in early-stage financing rounds having smaller ticket sizes or in later-stage, IPO-bound companies. The business-to-business agritech sector registered a significant jump, raising $61.6 million in venture debt across nine rounds in 2024, compared to just $5.3 million over five rounds last year.