, the fintech startup whose platform enables companies to raise capital in a non-dilutive manner, has raised $30 million in seed round of funding through a combination of debt and equity.
The funding round was led by InfoEdge Ventures and Village Global with participation from Aditya Birla Finance, U GRO CAPITAL, and Incred Financial Services. The round also saw participation from a group of angel investors.
Founded in 2021 by Abhinav Sherwal and Eklavya Gupta, Recur Club, which had earlier raised an angel round of funding, will use the fresh capital for product development and expansion of its sales and engineering teams.
Recur Club has created a technology platform that can assess the annual recurring revenue (ARR) of companies and underwrite them to convert them into financial instrument for investors. This enables the companies to raise capital based on their ARR at competitive rates without dilution of their equity while the investors get to participate in fast growth startups with a fixed income return kind of product.
“As number of recurring revenue companies (specifically SaaS) increase rapidly, Recur Club provides them with an alternative financing platform which complements VC capital and provides a quick turnaround with attractive rates while creating a new asset class for investors looking for fixed income yields,” said Amit Behl, Partner at InfoEdge Ventures.
According to Recur Club, it allows companies to trade their future customer revenue at a small discount to get capital upfront within 48 hours. The focus segment of this startup where it enables this kind of financing are SaaS, D2C, technology services, edtech, etc.
Eklavya Gupta, Founder and Co-CEO at Recur Club, said: “We introduced an efficient way which works like your customers paid you today that has resulted in us to achieve 5x growth in the last two quarters with over 500+ companies and $150 million plus of listed ARR.”
Recur Club believes the evolving maturity of the startup ecosystem has enabled them to create a differentiated financial product and the new funding round will enable them to target companies with a larger revenue size. It expects to reach a listed ARR of $1 billion with over 2,000 companies leveraging its platform by the end of this year.
Abhinav Sherwal, Founder and Co-CEO, Recur Club, said, “Our tech-first approach is a significant improvement in terms of speed, flexibility and convenience all of which translates into our vision of becoming a full stack financial suite for founders.”