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Tatas and Birlas have thrived on borrowed bucks. Should tech firms dive in too?

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Synopsis
Venture debt has been viewed as an attractive option for companies that want to avoid diluting excessive equity. However, it comes with its own set of caveats. We explain.

How often does it happen that parent firms leave their subsidiaries to fend for themselves when competition gets fierce? This may be true in the case of the Tata Group which has hit a pause on funding its e-commerce businesses 1mg and Bigbasket. The two of the biggest digital assets of the Tata Group are reportedly choosing debt over equity for their immediate expansion at a time when competition in consumer tech is hotting up. Industry watchers