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 Urban

07 Nov 2025

Welspun Enterprises Wins 910 MLD Panjrapur WTP Contract

Welspun Enterprises (WEL), the infrastructure and energy arm of Welspun World, has secured a major contract from the Brihanmumbai Municipal Corporation (BMC) to design, build and operate a 910 million litres per day (MLD) Water Treatment Plant (WTP) at Panjrapur, Maharashtra.Valued at approximately Rs 31.45 billion, the project encompasses end-to-end civil, mechanical, electrical and instrumentation works, including the construction of a treated water sump and pumping station. Of the total value, nearly Rs 11.56 billion is allocated to Operations & Maintenance (O&M), with an additional..

Mitsubishi Power Wins Boiler Upgrade Contract for O Mon 1 Plant

Mitsubishi Power, a power solutions brand of Mitsubishi Heavy Industries, (MHI), has been awarded a contract to support the oil-to-natural-gas fuel conversion at the O Mon 1 Thermal Power Plant in Can Tho, southern Vietnam. As the OEM of the plant’s existing boiler, Mitsubishi Power will supply key equipment—including new gas burners—and implement a selective catalytic reduction (SCR) system to reduce NOx emissions and help the plant meet stricter environmental standards.The O Mon 1 facility includes two 330 MW units that commenced operations in 2009 and 2015, with all major equipment or..

Liebherr’s 10,000th XPower Wheel Loader Joins BERGER’s Fleet

BERGER Rohstoffe GmbH has welcomed the 10,000th Liebherr XPower wheel loader to its operations at the Schlag granite quarry in Passau. The milestone machine, officially handed over at Liebherr’s Bischofshofen plant in May 2025, underscores the long-standing partnership between BERGER, Liebherr, and the Beutlhauser Group. Equipped with Liebherr’s signature power-split travel drive, the new L 580 XPower is already delivering strong results under demanding quarry conditions.At the Schlag quarry, BERGER Rohstoffe processes approximately 200,000 tonnes of Bayerwald granite annually into high-qu..