In investing, timing can be everything—but not always in the way we’ve been told. The dominant narrative says to be early and to catch the wave before it crests. But in many parts of the world, especially in emerging markets, the best timing doesn’t come with noise or headlines. It comes quietly—in the moments when attention fades, and capital retreats.
Today, as investor sentiment continues to swing between optimism and caution—especially in the US—Beyond Capital Ventures is doubling down on overlooked global markets with strong growth trajectories. Now is a key moment to reposition portfolios through strategic diversification and to embrace the long-term value found in emerging markets like India and Africa.
It’s also the time to structure capital that’s relevant to the real economics of businesses in these markets. If equity shaped the last decade of investing in emerging markets, debt may define the next. The binary choice between venture capital or nothing has left too many founders underfunded and too many investors sidelined. Debt offers a middle path. It meets companies where they are, aligns repayment with reality, and builds resilience through ownership retention.
Signals through the noise
In Q4 2024, we watched our thesis on overlooked markets play out across our venture portfolios. Five companies posted year-over-year revenue growth exceeding 100%. Ten reported overall revenue gains compared to the same quarter in 2023. And five saw simultaneous increases in revenue and profitability quarter-over-quarter—a signal not just of expansion, but of increasing operational discipline and financial health.
This performance is more than a quarterly highlight; it’s a reflection of an approach that consistently seeks value where others might overlook it. There is power in going where others don’t and staying the course when headlines shift.
From 2014 to 2023, net foreign direct investment inflows into the US and Germany were two to eight times higher than into India — and more than 60 times higher than into countries in East Africa. The disparity doesn’t reflect a lack of opportunity. It reflects a gap in attention. That gap is where alpha lives.
Markets like Kenya, Rwanda, Uganda, and India—where Beyond Capital Ventures has deployed equity and debt capital for over fourteen years—are home to rising consumer classes, underdeveloped financial systems, and pent-up demand for innovation. They also benefit from demographic tailwinds, expanding infrastructure, and a deep pool of entrepreneurial talent.
Take Lal10 for example. An investee of Beyond Capital Ventures, the India-based company is digitizing the informal artisan supply chain by providing micro-manufacturers with access to global markets. With a healthy asset base, strong receivables, and embedded revenue streams, Lal10 was a natural fit for multiple equity investments, and a non-dilutive working capital loan from Beyond Capital Ventures funds. While equity set the foundation to grow, a later debt facility allowed the company to fund purchase orders and manage inventory cycles without giving up equity or control. That’s the kind of practical growth capital many companies need—and often can’t find.
Critical capital gap
In this environment, the role of capital itself is changing. Startups aren’t just looking to raise larger equity rounds. They’re trying to extend runway, fund receivables, buy inventory, and stabilize cash flow. These are debt needs, not equity ones.
While equity is still necessary—especially to fuel innovation and absorb risk—it isn’t always the right tool for every stage of growth. Too often, equity is used because it’s available, not because it’s appropriate. Founders give up ownership for working capital. Investors chase outsized returns without offering the structural flexibility companies actually need to survive and scale.
Beyond Capital Ventures expanded into a multi-asset firm in 2024 with the launch of the Debt Opportunities Fund, newly closed. Its thesis is that debt capital structured with intention and care is a more aligned and efficient alternative to equity for venture fund portfolio companies.
Across a portfolio of early-stage companies operating in East Africa and India, we’ve seen how secured and tailored debt can act as a real catalyst. Many of these companies are generating consistent revenues, with improving EBITDA margins and credible paths to breakeven. They’re not speculative bets—they’re businesses with fundamentals, just lacking the type of capital that supports the in-between stages of growth.
For example, Kasha is an African-based digital platform for health and personal care products. Beyond Capital Ventures has maintained a long-term relationship with the company through multiple funds, both venture and debt. Kasha serves women and families across urban and rural areas, reaching thousands of households who would otherwise be left out of formal supply chains. With strong annual revenue and a proven ability to repay debt, the company is a compelling case for how structured capital—not just more equity—can sustain and expand impact.
Back to fundamentals
The zero-interest rate era had brought an influx of global capital—much of it unaccustomed to the unique timelines and structural realities of these markets. When momentum faded, so did many of those investors. But beneath the surface, something more important is happening: a return to fundamentals.
Rather than chasing the next leapfrog moment or importing Silicon Valley archetypes, local founders are building solutions rooted in enduring needs—like food, finance, logistics, health, and mobility. The S-curves may move more slowly, but when innovation aligns with market readiness, the slope is steep. Just look at the ubiquity of mobile money or the rise of social commerce driven by WhatsApp. These are not headline-grabbing moonshots—they’re infrastructure-level shifts with real traction.
Another example of this return to fundamentals is Zanifu, a Kenyan fintech providing inventory financing to thousands of micro-retailers and distributors. Rather than chasing scale at all costs, Zanifu has focused on building a disciplined, high-repayment lending platform rooted in the needs of Africa’s informal economy. With a 98% repayment rate, the company is scaling responsibly, using the Debt Opportunities Fund’s investment capital to expand its loan book while preserving founder equity. Its growth reflects a deeper trend: African startups leveraging real-world traction and financial discipline to build enduring infrastructure for local commerce.
Financial fit
Across the portfolio, companies are leveraging short-duration loans with repayment schedules tied to cash flow. Many of these instruments are backed by revenue contracts, receivables, or cash collateral, with protections designed not to penalize, but to prevent downside. Beyond Capital Ventures’ credit investment experience shows that with rigorous underwriting, active monitoring, and transparent governance, early-stage debt can not only preserve capital, but provide consistent returns.
The deeper truth is this: the funding challenge in emerging markets isn’t simply one of quantity—it’s one of fit. Early-stage debt offers a path forward not because it’s safer, but because it’s smarter. Providing debt also reflects a deeper belief that timing in investing isn’t about following noise. It’s about understanding when and where capital can make the most difference. In that way, the time for debt in emerging markets isn’t coming. It’s already here.
Eva Yazhari is the founder and managing partner at Beyond Capital Ventures.
