Venture debt disbursals in India rose 49% year-on-year(y-o-y) in 2022, a recent report from Stride Ventures showed.
The amount disbursed through venture debt was 800 million dollars in 2022, nearly triple the 2019 figure.
The financial technology segment witnessed the maximum venture debt deals in 2022. Consumer segment witnessed the second highest deals.
Around 52% of total amount invested was in the financial technology segment, whereas 20% was in business-to-business commerce segment.
A total of 170-180 venture debt deals were reported in 2022.
A total of 120-130 companies raised venture debt in 2022, and the average age of start-ups raising venture debt was 4.8 years.
Average ticket size of venture debt deals in 2022 were 10.6 million dollars. Delhi National Capital Region received the highest venture debt deals.
Venture Debt refers to a variety of debt financing products that are applicable specifically to venture capital-backed companies. It is primarily a type of loan that is offered to early-stage, growth stage and late stage companies with venture capital backing.
A venture debt lender receives coupon and warrants from the borrower in addition to a principal.
Venture debt is utilised for various activities including working capital management, acquisition financing, receivables financing, and onward lending.
