The Indian Private Debt market is currently plagued with systemic issues that inhibit the massive growth opportunity that a well-functioning debt market can potentially unleash. The current system has few players, poor risk-sharing opportunities limiting newer entrants, and a high reliance on bank lending, among many other factors that ultimately result in unreliable and expensive access to debt capital for most.
While steps have been taken to address the constraints that can unshackle the market’s growth, the efforts haven’t been holistic in their design and execution to solve both foundational and characteristic issues of an efficient debt market. At Dvara, we believe a tremendous opportunity in this space could be solved for and can have far-reaching consequences towards enabling India’s growth story.
We aim to build an efficient integrated intermediary solution that solves the system’s shortcomings on the one hand and, on the other, brings issuers, investors and traders together by creating deep trusted partnerships, providing credible risk-sharing opportunities, addressing information asymmetry among participants and advocating for policy change. With key building blocks like sales, research and trading, the solution at its heart will have technology as the underlying thread, paving the way for the creation of cutting-edge models of finance that can lead to the creation of a well-functioning and efficient debt market that a country of India’s size both needs and deserves. The two initial products of interest are – agri warehouse receipts & corporate bonds issued by social impact companies.