India’s food and beverage industry is emerging as a major destination for private credit, as investors increasingly back businesses seeking capital for acquisitions, refinancing, expansion and working capital.
Private-credit investment in the sector surged sharply in the first half of 2026, with the Food & Beverage (F&B) segment accounting for 12% of India’s total private-credit deal value in H1 2026, compared with just 1% in H2 2025, according to EY’s Private Credit Report H1 2026.
The jump made F&B the third-largest sector by private-credit deal value during the January-June period, behind real estate and healthcare.
The development comes as India’s broader private-credit market continues to deepen, with lenders increasingly providing customized financing to companies that require capital beyond conventional bank lending.
F&B emerges as a private-credit hotspot
EY tracked US$3.5 billion across 102 private-credit transactions of more than US$10 million each in H1 2026, compared with US$3.4 billion across 87 transactions in H2 2025.
While overall private-credit investment remained broadly stable, the distribution of capital across sectors changed significantly.
Real estate accounted for 35% of total deal value, followed by healthcare at 13%, while F&B captured 12%.
The shift is particularly notable because F&B’s share was only around 1% during the previous six-month period.
The sharp increase suggests that food and beverage companies are increasingly accessing private credit as they pursue growth opportunities and manage increasingly complex capital requirements.
Two large transactions underpin the increase
Two sizeable transactions highlighted by EY illustrate the type of financing activity driving the sector’s rise.
HyFun Foods Group raised US$156 million through a transaction involving refinancing and working-capital requirements. The deal highlights the growing role of private credit in providing capital not only for expansion but also for refinancing and operational requirements.
Meanwhile, Lenexis Foodworks Private Limited, part of the Inspira Group, secured US$113 million for acquisition financing.
Together, the two transactions represent US$269 million in private-credit financing and underline two important areas of demand within the food industry: balance-sheet refinancing and acquisitions.
The transactions also demonstrate how private credit can be used to structure financing around specific corporate requirements rather than relying solely on standardized bank lending products.
India's private-credit market crosses US$3.5 billion
The surge in F&B activity comes against the backdrop of a relatively resilient Indian private-credit market.
EY recorded US$3.5 billion of private-credit investments across 102 transactions in H1 2026. The number of transactions increased from 87 in H2 2025, even though aggregate deal value rose only modestly from US$3.4 billion.
The data points to increasing activity among mid-market companies.
Transactions between US$10 million and US$60 million accounted for 87% of deal count and 61% of total deal value during the first half of the year.
This segment is particularly relevant to India's expanding food ecosystem, which includes food processors, packaged-food companies, consumer brands, restaurant businesses and other companies that require growth capital but may not always fit conventional financing structures.
Domestic capital takes a larger role
Another important feature of the private-credit market is the growing participation of domestic funds.
According to EY, domestic funds accounted for 74% of total private-credit deal value and approximately 79% of deal count in H1 2026.
The development signals increasing maturity within India's domestic private-credit ecosystem and suggests that companies are gaining access to a broader pool of local institutional capital.
For the F&B industry, this could prove significant as companies look to raise capital for capacity expansion, acquisitions, distribution networks and working capital.
Why investors are looking at food and beverage
India's consumption story remains a key factor behind investor interest in the sector.
Rising consumer spending, changing consumption patterns and premiumisation are creating opportunities across the food value chain.
For established food businesses, the opportunity is increasingly about scaling existing operations, expanding manufacturing capacity, entering new markets and acquiring complementary businesses.
For investors, these requirements can create opportunities for structured financing.
Private credit can also provide companies with greater flexibility in how capital is deployed, particularly when the requirement involves a combination of refinancing, acquisition funding and growth capital.
Private credit moves beyond traditional financing
The rise of F&B within India's private-credit market reflects a broader evolution in corporate financing.
Private credit was once largely viewed as an alternative source of capital for companies unable to access conventional financing. It is increasingly becoming a mainstream financing option for businesses seeking customized solutions.
EY expects private credit to continue finding opportunities across areas including acquisition financing, growth capital, refinancing, special situations and value-creation-led transactions.
For India's food and beverage industry, this creates another avenue for companies looking to accelerate expansion without relying exclusively on traditional bank debt or equity funding.
What the surge means for India's F&B industry
The increase in F&B's share of private-credit deal value from around 1% to 12% in six months is more than a change in sector rankings.
It signals growing investor willingness to deploy structured capital into India's food economy at a time when companies across the sector are pursuing scale.
The transactions involving HyFun Foods and Lenexis Foodworks also show that the capital is being used for different purposes—from refinancing and working capital to acquisition financing.
While F&B remains behind real estate and healthcare in overall private-credit deal value, its rapid rise during H1 2026 makes it one of the most closely watched sectors in India's alternative-credit market.
For food companies, the development could translate into greater access to flexible capital. For investors, it reflects growing confidence that India's expanding consumption and food ecosystem can support attractive opportunities beyond traditional lending.
EY's H1 2026 data ultimately points to a broader shift: India's food and beverage industry is becoming increasingly relevant not just to consumer and equity investors, but also to the country's rapidly maturing private-credit market.