Growth Credit: From Alternative To Essential

Growth Credit is emerging as a significant component of Private Credit, supporting growth-stage businesses across India, Southeast Asia and the GCC. This report examines the scale, evolution and future potential of Growth Credit, drawing on 1,700+ credit deals worth more than US$60 billion since 2021, alongside perspectives from founders and funds.

Growth Credit: From Alternative to Essential examines the evolution of Growth Credit as an increasingly important component of Private Credit across India, Southeast Asia (SEA), and the GCC. The report explores how changing financing needs, evolving lender participation, and deepening Private Credit ecosystems are expanding the role of Growth Credit beyond a conventional alternative source of capital.

Drawing on analysis of 1,700+ credit deals worth more than US$60 billion since 2021, the report assesses the scale and trajectory of Private Credit across the three focus geographies. Private Credit is projected to reach US$100 billion+ in AuM by 2030 across India, SEA and GCC, with India expected to remain the regional anchor while SEA and GCC continue to develop their markets.

The report highlights the growing significance of Growth Credit, which accounted for 38% of Private Credit disbursements in 2025, with New-age sectors contributing 37% of the segment. Growth Credit AuM is projected to reach US$46 billion by 2030, supported by earlier-stage capital deployment, a deepening financing ecosystem, supportive regulation and broader lender participation.

Importantly, Growth Credit is increasingly being used to fund business-building requirements rather than only liquidity needs. Expansion and capex accounted for 52% of Growth Credit activity in 2025, followed by working capital at 24% and refinancing at 12%. The report also examines the role of New-age sectors—including technology-led businesses, New-age Consumer, Semiconductors, Data Centers, Artificial Intelligence, EV Value Chain and Deep Tech—in shaping future demand.

Across India, SEA and the GCC, the report explores differences in market maturity, funding needs, borrower profiles, sector opportunities and ecosystem development. It also examines how domestic fund formation, institutional participation and regulatory initiatives are contributing to the evolution of Private Credit markets.

Overall, the report provides a regional perspective on how Growth Credit is transitioning from an alternative financing option toward a more established layer of growth capital, and the implications for borrowers, lenders, investors and the broader Private Credit ecosystem.