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Fintech’s new fuel: Venture debt takes centrestage amid a funding crunch

Livemint · 5m

Venture debt has surged in India as venture capital funding for fintech companies tightens due to regulatory scrutiny. Fintech startups secured $671.1 million in venture debt, a significant increase from the previous year. While overall venture capital investment in fintech dropped 38%, venture debt rose by 10% across various sectors. It offers startups an alternative funding source, focusing on capital efficiency and avoiding equity dilution. Consumer startups also benefited, raising $459 million in venture debt funding.