Mumbai, Nov. 4 -- Debt funds EvolutionX Debt Capital, Stride Ventures and BlackSoil Group, that primarily lend to fast-growing, new age economy companies in India, have expanded to markets in West Asia, Southeast Asia, and Europe in recent months to diversify exposure and maximise returns.

With limited opportunities in Indian markets and ongoing geopolitical uncertainties, this is likely to be the next leg of growth for these players, according to industry executives and consultants.

Venture debt comprises high-interest loans to early stage companies that want to raise capital without diluting equity. Typically, startups and early stage companies turn to such debt when venture capital becomes scarce or expensive. Venture debt is usually...