Venture Debt Gains Ground in India's Startup Ecosystem

19 Nov 2024 CW Team

India's venture debt market is witnessing steady growth, emerging as a key funding avenue for startups in capital-intensive sectors such as fintech and electric vehicles (EVs), according to a report released by global investment institution Lighthouse Canton.

Founders are increasingly leveraging venture debt to bridge funding gaps without diluting equity, a shift driven by limited equity funding availability and the need to preserve ownership while securing growth capital.

The report highlighted that 40% of founders prefer venture debt for its less dilutive nature, with repayment flexibility also being a significant factor for 30% of respondents.

Driving Innovation and Growth "India's startup ecosystem holds immense potential, and the growth of venture debt funding is pivotal in driving its development," said Sanket Sinha, Managing Director at Lighthouse Canton. Venture debt is proving essential in enabling startups to innovate, manage cash flows, and fuel expansion across India's dynamic business landscape.

Sectoral Impact The fintech sector, the world's third-largest, has been a significant driver of venture debt adoption. Innovations like UPI have propelled the industry forward, with venture debt helping startups manage cash flows and support onward lending.

Similarly, the EV sector relies heavily on venture debt, with 67% of startups in the space using it for more than half of their debt funding. Traditional lenders often perceive the EV industry as high-risk, making venture debt a vital alternative to sustain growth.

As India’s startup ecosystem evolves, venture debt continues to solidify its role as a strategic funding tool for emerging businesses navigating rapid growth and capital-intensive challenges.

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..