We are Main Street
World

Growth Credit Has Become Primary Funding Strategy

Private credit is now financing expansion and capital expenditures for companies across Asia and the GCC.

Updated on Oct. 6, 2026 in Corporate Finance

Isometric editorial illustration of steel cargo shipping containers suspended from an industrial crane hook, symbolizing business expansion and capital investment.
A report from Praxis Global Alliance and EvolutionX Debt Capital finds that growth credit now fuels nearly half of all capital expenditures for emerging companies. AI Illustration. Upload story photo >

Live Poll

Is it a good time for growing businesses to use debt to fund expansion?

A new report from Praxis Global Alliance and EvolutionX Debt Capital highlights how growth credit has transitioned from an alternative funding source to a critical operational tool. The analysis covers over 1,700 deals across India, Southeast Asia, and the GCC.

Why it matters

Businesses are increasingly leveraging growth credit to fund capital expenditures and expansion rather than relying solely on liquidity or traditional refinancing. This shift reflects a strategic move to secure larger debt tranches to fuel sustained growth.

Private credit assets reached US$ 41 billion in 2025, with projections suggesting growth to US$ 109 billion by 2030. The report analyzed 1,700 credit deals valued at over US$ 60 billion, noting that 50% of surveyed founders sought more than US$ 50 million in debt.

The players

Praxis Global Alliance

A research and management consulting firm providing data and strategic insights on private capital and regional market trends.

EvolutionX Debt Capital

A specialized debt financing platform focused on providing growth-stage capital to companies in Asia and the Middle East.

The details

Growth credit is increasingly being used to facilitate capital expenditures, which accounted for 48% of total disbursements in 2025. Another 24% of funds were utilized for working capital, while 14% went toward refinancing. This data indicates that founders are prioritizing debt-based expansion strategies to scale operations across emerging markets.

Timeline

  1. 2021 marked the starting point for the credit deal analysis period.

  2. 2025 served as the year for tracking disbursement breakdowns and total assets.

  3. September 30, 2026, was the date the report was unveiled at the SVCA Annual Gala.

  4. October 6, 2026, marked the official announcement of the report launch.

  5. 2030 is the projected target for private credit assets under management.

Market Landscape

This report tracks the historical shift of private credit from a non-bank liquidity source to a primary growth capital tool for emerging market companies. The data confirms that private credit is now a mainstream financing instrument, following patterns established in more mature credit markets.

Owners should evaluate whether debt-based growth capital is a viable alternative to equity for upcoming capital expenditure cycles. The industry-wide shift toward larger debt tranches suggests that lenders are increasingly prepared to structure financing for sustained business expansion.

The takeaway

Growth credit has evolved into a strategic necessity rather than a secondary financing option for scaling companies. Operators should monitor the increasing availability of debt instruments to determine if they provide a lower-cost alternative to raising further equity for capex.

Further reading

For broader trends in debt and liquidity strategies, see Corporate Finance.

More information

To review the full data on credit disbursements and market projections, Download the Growth Credit report.

Live Poll

Is it a good time for growing businesses to use debt to fund expansion?