Private credit investments in India's food and beverage (F&B) sector surged 12-fold in the first half of 2026, emerging as one of the fastest-growing segments in the country's alternative financing market, according to a report by EY.
The sector's share of total private credit deal value rose sharply to 12% in H1 2026 from just 1% in the second half of 2025, making F&B the third-largest sector for private credit investments during the period, EY said in its Private Credit Report H1 2026.
The growth was supported by several large transactions, including HyFun Foods Group's $156 million refinancing and working capital raise and Lenexis Foodworks' $113 million acquisition financing deal.
1 August 2026
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According to the report, the scale of these transactions reflects rising demand for capital to support expansion, acquisitions and operational growth among food-focused businesses.
The sharp increase also indicates that private credit investors are looking beyond traditional sectors and increasingly targeting consumer-driven businesses benefiting from rising consumer spending and premiumisation trends in India.
Dinkar Venkatasubramanian, Partner and National Leader – Debt and Special Situations at EY India, said India's private credit market is entering a new phase of evolution.
"What began as a niche source of alternative capital has become an important pillar of the country's financing ecosystem," he said.
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He added that new opportunities are emerging across acquisition financing, growth capital, refinancing, special situations and value creation-led transactions. The increasing participation of domestic capital, regulatory strengthening and growing acceptance of private credit among borrowers are contributing to a deeper and more resilient market, he said.
