Fundraise through venture debt up 50% in 2023; equity funding down 70%

At a time when equity fundraising among Indian startups has nosedived amid the so-called funding winter, venture debt as an asset class grew steadily to cross the $1 billion mark in 2023.

Indian startups cumulatively raised $1.2 billion in venture debt investments across around 175-190 deals last year, a 50 per cent rise from $800 million raised across 170-180 deals in 2022, according to a report by alternative debt provider Stride Ventures. The equity funding fell around 70 per cent from $25.7 billion in 2022 to just $8 billion in 2023, it said.

“The deals became more granular last year.