Startups turned to venture debt amid funding winter. Now they’re facing the heat
Indian startups, including the Good Glamm Group, Reshamandi, and Arzooo, are negotiating extensions with venture debt backers, as they struggle to repay loans amid a challenging macroeconomic environment. The requests for extended repayment timelines highlight the difficulties faced by startups in securing funding during the funding winter. Venture debt is a financing option used by early and growth stage companies to support liquidity concerns until their next fundraising round. Lenders must decide which startups are likely to survive and may offer concessions based on potential for recovery and support from equity investors.