Venture debt players EvolutionX Debt Capital, Stride Ventures, and BlackSoil Group are expanding beyond India into West Asia, Southeast Asia, and Europe to diversify exposure and pursue growth amid limited domestic opportunities and geopolitical uncertainty.

The expansion is driven by favorable growth trends in target regions, including India’s strong growth narrative paired with Southeast Asia’s expanding markets, along with young demographics, improved capital markets, and government pushes toward non-oil sectors.

Industry leaders warn that geographic expansion must be backed by local underwriting and market expertise to ensure offshore operations align with portfolio needs and regulatory environments.

EY India notes India’s venture debt ecosystem remains small, with roughly 10–12 major players, suggesting overseas expansion could account for about a quarter to a third of total players as funds tap younger ecosystems and higher startup activity.

Stride Ventures has launched three funds across India, the GCC, and the UK, targeting an additional $300 million (aiming for a total of $600 million) after raising $300 million recently, with investments in about 200 startups including BlueStone, Moneyview, Moove, Foxtale, CureSkin, NewMe, Nat Habit, and AgroStar.

BlackSoil unveiled a $50 million Southeast Asia–focused credit fund in August and is exploring synergies between India and Southeast Asia, with potential next steps in Australia and the India–Middle East corridor.

Overall, Indian venture debt players are diversifying geographically to tap growth sectors abroad while leveraging domestic strengths and seeking new capital pools.

EvolutionX Debt Capital, backed by Temasek and DBS, targets growth-stage tech-enabled businesses in India, Southeast Asia, and China, with a planned first investment in the GCC and ticket sizes of $20–$75 million, contrasting with Stride and BlackSoil that aim for $2–$20 million in earlier-stage startups.

Industry experts see venture debt expanding as startups seek non-equity financing and VC activity slows; overseas expansion is viewed as a strategy to access new ecosystems, attract international LPs, and reduce dependence on a single market.