Venture Debt - India

  • India
  • The projected Total Capital Raised in the Venture Debt market market in India is expected to reach US$655.60m in 2025.
  • Traditional Venture Debt remains dominant in the market with a projected market volume of US$617.50m in 2025.
  • When compared globally, the United States is anticipated to generate the most Capital Raised (US$27,830.0m in 2025).
  • In India, the Venture Debt market is gaining traction among startups seeking alternative financing options for growth and expansion.

Key regions: Brazil, Germany, United Kingdom, Singapore, China

Market
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Currency

Capital Raised

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Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Oct 2024

Source: Statista Market Insights

Finance

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This report presents a comprehensive analysis and additional information on the Venture Debt market, in a PDF format.
Traditional Capital Raising: market data & analysis - Background Traditional Capital Raising: market data & analysis - Cover

Average Deal Size

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Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Oct 2024

Source: Statista Market Insights

Global Comparison

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Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Oct 2024

Source: Statista Market Insights

Number of Deals

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Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Oct 2024

Source: Statista Market Insights

Analyst Opinion

The Venture Debt Market in India is witnessing a mild decline, influenced by factors such as fluctuating investor confidence, evolving regulatory landscapes, and a shift towards equity financing, which is impacting traditional capital raising dynamics.

Customer preferences:
Investors in India's Venture Debt Market are increasingly prioritizing sustainability and social impact, reflecting a broader cultural shift towards responsible investing. As younger generations seek to align their financial choices with personal values, there is a growing demand for funding opportunities that promote environmental, social, and governance (ESG) criteria. Additionally, the rise of technology-driven startups focusing on innovative solutions in healthcare, education, and renewable energy is reshaping investor interest, steering capital towards ventures that address pressing societal challenges.

Trends in the market:
In India, the Venture Debt Market is experiencing a notable shift towards sustainable investing, with investors increasingly favoring startups that emphasize environmental, social, and governance (ESG) criteria. This trend is driven by younger investors who prioritize aligning their capital with personal values, leading to a surge in funding for ventures focused on renewable energy, healthcare innovation, and educational technology. As this demand grows, traditional capital raising channels are adapting, fostering a more responsible investment landscape that not only supports financial returns but also addresses critical societal issues, reshaping industry dynamics.

Local special circumstances:
In India, the Venture Debt Market is gaining traction, fueled by a burgeoning startup ecosystem and a young, tech-savvy population eager to innovate. Local factors such as a diverse demographic landscape and a rapid urbanization trend are driving demand for tech-enabled solutions across various sectors. Additionally, regulatory support from the Indian government, including initiatives for startup funding and ease of doing business, is creating an attractive environment for venture debt. This combination of cultural entrepreneurship and supportive policies is reshaping the traditional capital raising landscape, fostering unique investment opportunities.

Underlying macroeconomic factors:
The Venture Debt Market in India is significantly influenced by macroeconomic factors such as the overall health of the national economy, global investment trends, and fiscal policies. As the Indian economy continues to expand, with a projected GDP growth rate above the global average, it creates a robust environment for startups seeking capital. Furthermore, favorable fiscal policies, including tax incentives for investors and streamlined regulatory frameworks, enhance the attractiveness of venture debt. Global trends, such as increased interest in emerging markets and a shift towards alternative financing solutions, also bolster the local venture debt landscape, paving the way for innovative financing avenues tailored to the needs of Indian startups.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

Key Market Indicators

The following Key Market Indicators give an overview of the social and economic outlook of the selected region and provide additional insights into relevant market-specific developments. These indicators, together with data from statistical offices, trade associations and companies serve as the foundation for the Statista market models.

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