India Inc sees growing interest for private credit as market expands

Subscribe to enjoy similar stories. MUMBAI: India’s private-credit market is in the midst of its busiest phase yet, with a wave of domestic and global investment firms rushing in as companies seek faster, more flexible capital than traditional lenders can provide. Over the past 12 to 18 months, firms from DMI Alternatives and Ascertis Credit to Motilal Oswal Alternates, ASK Group, True North, Edelweiss, Multiples Alternate Asset Management, Prabhudas Lilladhar and Vivriti Asset Management have launched new funds, while heavyweights such as Blackstone Group and Bandhan AMC are setting up dedicated platforms.

The National Investment and Infrastructure Fund (NIIF) has also announced a $2 billion plan aimed at drawing global capital into the asset class. This surge reflects the rapid evolution of private credit from a niche strategy into one of the most active corners of India’s capital markets. Companies across sectors are opting for financing that lets them raise money without giving up equity, while investors—from family offices to private-equity managers—look for steadier yields and faster distributions than equity can offer.

The shift is being accelerated by gaps left by banks and non-banking finance companies (NBFCs), regulatory flexibility under the AIF framework, and a growing pool of domestic capital allocating to structured credit. The enthusiasm is backed by numbers. Private-credit deployment hit $9 billion across 79 deals above $10 million in the first half of 2025, a 53% jump from a year earlier, according to an August report by EY.