Private credit investment in India’s food and beverage (F&B) sector rose sharply in the first half of 2026, increasing 12-fold compared with the second half of 2025, according to EY’s Private Credit Report H1 2026.
The increase made F&B the third-largest sector for private credit investment in India. Its share of total private credit deal value climbed from just 1% in H2 2025 to 12% in H1 2026.
According to EY, F&B recorded the biggest increase in investment share among all sectors covered in the report, showing growing investor interest in India’s consumer and food businesses.
Several large transactions contributed to the rise. HyFun Foods Group raised $156 million through refinancing and working capital financing, while Lenexis Foodworks secured $113 million in acquisition financing.
These deals indicate that food companies are increasingly using private credit to fund expansion, acquisitions, working capital and business growth.
Private credit provides companies with an alternative to traditional bank loans and equity funding. It can be particularly useful for businesses seeking flexible financing to expand operations, acquire other companies, or refinance existing debt.
EY said India’s private credit market is also becoming broader and more mature. Dinkar Venkatasubramanian, Partner and National Leader – Debt and Special Situations at EY India, said opportunities are growing across acquisition financing, growth capital, refinancing, special situations and value-creation transactions.
The increasing availability of domestic capital, stronger regulation, and greater acceptance of private credit among borrowers are also supporting market development.
For India’s F&B industry, the trend is significant. Growing demand for packaged, branded and premium food products is encouraging companies to expand production, strengthen distribution and pursue acquisitions.
The 12-fold jump in investment suggests that private credit investors increasingly see food and beverage businesses as an attractive part of India’s growing consumer economy. With larger deals entering the market, private credit could become an important source of funding for F&B companies looking to scale their businesses.