Enterprise debt remained flat in 2024 at $1.2 billion: Report, CFO Information, ETCFO
Enterprise debt remained flat in 2024 at $1.2 billion, the identical because the earlier 12 months. It, nonetheless, grew at a compound annual development fee (CAGR) of 58% between 2018 and 2024, in line with the International Enterprise Debt Report 2025 by Stride Ventures, a enterprise debt agency, and international administration consulting agency Kearney.
The variety of enterprise debt offers elevated by 28.6%, rising from 185 offers in 2023 to 238 in 2024, in line with the report.
Fintech, shopper tech, and cleantech have been the main sectors for enterprise debt funding final 12 months and are anticipated to proceed attracting the very best such investments in 2025.
In response to the report, Bengaluru accounted for 40% of whole enterprise debt offers, adopted by Delhi NCR and Mumbai.
“India has emerged as a frontrunner in enterprise debt adoption by startups, pushed by a mixture of macroeconomic shifts, evolving founder preferences, and larger institutional participation,” stated Apoorva Sharma, managing associate, Stride Ventures. “Our information reveals a transparent uptick in demand from growth-stage corporations, particularly in sectors like fintech, cleantech, and shopper tech.”
Enterprise debt refers to quite a lot of debt financing merchandise relevant particularly to personal fairness and enterprise capital-backed corporations. These are early-stage, growth-stage and late-stage startups that will lack constructive money stream and tangible collateral however have secured investments from enterprise capitalists.
Key enterprise debt companies in India embrace Stride Ventures, Trifecta Capital, Alteria Capital and InnoVen.
“As fairness capital turns into extra selective, enterprise debt is enjoying a pivotal position in bridging funding gaps whereas empowering founders to retain strategic management,” Sharma added.
Stride Ventures has backed startups resembling Zepto, Insurgent Meals, Sugar Cosmetics, and Mensa Manufacturers.
Final December, Stride Ventures launched Fund IV, its largest home fund, with a goal of elevating $300 million.
Round 120 founders, 70 enterprise capitalists, and 54 restricted companions participated within the international survey.
Most founders surveyed view enterprise debt as a key device to increase their runway and handle working capital, whereas 41% of respondents highlighted its growing use in pre-IPO financing, serving to corporations scale and stabilise earlier than going public.
A number of the late-stage corporations which have turned to enterprise debt forward of their IPO listings are omnichannel jewelry retailer Bluestone, on-line market for development supplies Infra.market, EV maker Ather Power, in addition to its rival, Ola Electrical, which has already gone public.
“Enterprise debt the world over is rising at a 14% CAGR, advancing from being a distinct segment instrument to a mainstream asset class, empowering entrepreneurs to develop sustainably,” stated Ishpreet Singh Gandhi, founder and managing associate, Stride Ventures.
