Business-to-business (B2B) fintech platform has partnered with Titan Capital to offer Rs 100 crore in non-dilutive growth capital for the latter’s portfolio companies.
In an official statement, Recur Club said that it will direct the capital to companies where Titan Capital has invested in. It will allocate this amount will from its pool of $30 million seed capital that it raised recently.
Companies can trade their future customer revenues at a small discount to get capital upfront within 48 hours, the statement added.
Founded in 2021 by IIM Calcutta alumni Abhinav Sherwal and Eklavya Gupta, Recur Club’s trading platform facilitating financing for companies with recurring revenue streams.
“The current uncertain global macroeconomic situation has resulted in rising interest rates and liquidity squeeze, which has resulted in capital from risky instruments like VC equity drying or investors pushing companies for down rounds. This has further accentuated interest in non-dilutive financing solutions like Recur Club,” said Eklavya, Founder and Co-CEO at Recur Club.
“Recur Club’s solution perfectly complements VC capital by enabling founders to efficiently balance their capital stack. We believe this solution can help majority companies in our portfolio spanning across early stages to growth stages. This capital can be used to fund expenses with a payback period between 12-24 months and equity capital can be utilised for expenses with uncertain outcomes,” added Bipin Shah, Partner at Titan Capital.
Recur Club claims to work with companies which have a predictable annual revenue of at least $100,000 from existing customers, greater than one year of vintage (when the capital was dpeloyed to the company), and having more than three months of runway. The sectors covered by their offering include but are not limited to SaaS (software-as-a-service), tech services, B2B tech platforms, edtech, D2C (direct-to-consumer) subscriptions, and proptech.
Established in 2015, the Gurugram-based venture capital firm Titan Capital has provided seed capital to more than 200 startups, including six unicorns — Ola, Mamaearth, Urban Company, Razorpay, Snapdeal, and OfBusiness. It focuses its investment in sectors including consumer internet, D2C brands, SaaS platforms, artificial intelligence, and computer vision.
