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Singapore and Bengaluru-based revenue-based financing platform Klub on Tuesday said it raised a seed round of $20 million in a mix of equity and debt. The round saw participation from existing investors 9Unicorns, and Sequoia Capital India’s Surge, along with Alter Global (US) and GMO VenturePartners (Japan) as new investors. 

Founded by Anurakt Jain and Ishita Verma, Klub provides flexible growth capital ranging from Rs 2 lakh to Rs 30 crore with zero equity dilution or personal guarantees.

Klub provides funding for recurring marketing, inventory, and capex spends to a wide variety of digital-first companies and SMEs across ecommerce, D2C, edtech, SaaS, and broader digital commerce spectrum.

Klub will utilise the capital to expand its team, accelerate the development of its tech and data platform, and expand its product offerings and market segments.

The startup also plans to deploy Rs 500 crore over the next few quarters to local brands and digital SMEs.

“We are extremely bullish on revenue-based financing, and as early backers, we are proud to see Klub quickly become the market leader. At 9Unicorns, our investment thesis is designed to be founder-first and back products that work for both small and large businesses, and have a value proposition for Tier 2/3 India. In Klub, we found the perfect mix,” said Apoorva Ranjan Sharma, Co-founder and President, 9Unicorns.

Klub uses deep data-driven analytics to drive faster funding decisions for over 500 businesses and ensures their cost of capital appropriately reflects the risk inherent in businesses across different stages and sectors.

Commenting on the fund-raise, Klub Co-founder and CEO Anurakt Jain said,

“The digital revolution in India has levelled the playing field for local businesses, and we are thrilled to have a front-row seat in this multi-trillion-dollar opportunity. We believe that the foundation of a truly great company lies in solid partnerships.”

“We are humbled by the confidence shown in us by our partners – company founders, capital providers, ecommerce and fintech partners, and our investors. India’s digital commerce ecosystem requires more than ‘one-size-fits-all’ financing, and with this round, we can further our mission of enabling growth for loved brands,” he added.

“This unprecedented phase has opened the doors for locally loved brands to be visible to a global audience by accelerating digital shifts in technologies and behaviours. However, we still see a significant credit gap arising from the inability of traditional capital sources to underwrite and provide sufficient support to foster this momentum. To solve this massive problem, GMO Venture Partners is very excited and honoured to be partnering with Klub to expand its engaged community as the leading revenue-based financing platform.” said Ryu Muramatsu, Founding Partner and Director, GMO VenturePartners.