Non-Dilutive Funding Options in India
Raise capital without giving up equity. A look at the main non-dilutive options open to Indian startups and SMEs.
Non-dilutive funding is capital you raise without selling shares in your company. Founders keep ownership and control, and repay or earn out the funding on agreed terms instead.
Common non-dilutive options
- Term loans and working capital loans: bank or NBFC facilities repaid over time.
- Venture debt: debt for equity-backed startups to extend runway or fund growth.
- Invoice and receivable financing: advances against unpaid invoices.
- Supply chain finance: funding for vendors, dealers and distributors linked to a larger buyer.
- Revenue-based financing: funding sized on recurring revenue and repaid from it.
- Asset and equipment finance: loans or leases against machinery and other assets.
- Government schemes and grants: programmes offered for specific sectors or stages.
How to choose
- Match the product to the need: short-term cash gaps suit working capital or invoice products; long-lived assets suit term or asset finance.
- Compare the full cost, including interest, fees and security requirements.
- Check that repayments fit your cash flow, including in slower months.
Debt and equity together
Non-dilutive funding does not have to replace equity. Many founders use debt for predictable needs and keep equity for riskier bets, which can help them raise on better terms later.
Where Loanbazaar fits
Loanbazaar connects Indian startups and SMEs with 100+ lending partners across these categories. Our Swift offering targets quick working capital based on recurring revenue, and Scale targets larger institutional facilities.
Frequently asked questions
What does non-dilutive mean?
It means you raise capital without giving up equity in your company.
Is non-dilutive funding always debt?
Not always. It also includes grants, revenue-based financing and some other structures, but debt is the most common form.
Which option is cheapest?
It depends on your profile, the lender, security offered and the structure. Compare the total cost across offers.
This page is for general information only and is not financial, legal or tax advice. Loanbazaar is a loan distributor and connects businesses with lending partners; it does not lend directly. Terms, eligibility and approval are decided by the lender.