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Start-ups tap venture debt to stay afloat amid funding winter, say experts

The venture debt market is becoming popular within the start-up ecosystem with a lot of new funds coming up and limited partners also showing their interest in financing such investments

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Indian start-ups raised $3 billion in Q3 2022 (July-September), 57 per cent lower than the previous quarter, according to the Tracxn report

Peerzada AbrarAryaman Gupta Bengaluru/New Delhi
At a time when India is currently experiencing a funding winter, start-ups are looking at different fundraising avenues such as venture debt to stay afloat, according to experts. The funding winter is expected to continue for the next 12-18 months and the country has witnessed a series of layoffs and start-up and unicorn valuations are under stress.

Experts said that India's Venture debt market has started becoming popular in recent times with a lot of new funds coming up and limited partners are also showing their interest in financing such investments.

“In the current market conditions where the funding is

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