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Recur Club plans to deploy Rs 2,000 Cr in 2024: Interview with Eklavya Gupta

EntrackrEntrackr · 1y ago
Recur Club plans to deploy Rs 2,000 Cr in 2024: Interview with Eklavya Gupta
Medial

Revenue-based financing as an alternative source of working capital is gradually receiving wide acceptability, especially among growth-stage startups. The relevance of such alternative funding sources is now far more pertinent considering the so-called funding winter wherein chances of startups scoring equity capital are slim. In recent years, several revenue-centered financing platforms have emerged with Getvantage, Velocity, and Klub being some of the notable names. Gurugram-based Recur Club has also emerged as a notable player in the space with an allocation of Rs 1,100 crore across 500 startups in 2023. The company is now looking to expand its reach in the startup ecosystem. The roadmap includes onboarding a higher number of startups as well as more investment deployment. To better understand Recur Club’s business, growth and projections, Entrackr caught up with its co-founder and chief executive officer Eklavya Gupta. Recur has backed startups like Ustraa, Rage Coffee, Moveinsync, Keka HR, Xoxodays, and others. In July last year, the platform launched a $10 million fund to back startups actively working towards a greener and more sustainable future. Recur Club isn’t looking to raise any fresh capital at the moment. “We are well capitalized and not looking to raise any money in the near future. Our priority is to onboard 500 – 700 startups this year and deploy Rs 2,000 crore through its platform,” Gupta said. Gupta disclosed that nearly half of the company’s deals are in SaaS and tech sectors, whereas the remaining is deployed towards commerce and logistics. The investment pattern is pretty similar to other revenue-based financing platforms’. Recur Club offers credit in the range of Rs 20 lakh to Rs 35 crore which yields an IRR (internal rate of return) of anywhere between 15% and 19%. While large borrowers typically pay back the loan amount in 12 to 18 months, short-term loans are required to be paid between 50-90 days. Recur Club connects startups with over 50 prominent lenders, including Tata Capital, HSBC, Aditya Birla Capital, INCRED, Ugro Capital, and various other NBFCs, banks, and institutional capital providers. According to Gupta, Recur Club assesses leads on three core premises: average revenue run rate (ARR) of at least Rs 1 crore, six months runway and positive revenue growth. Recur Club makes money by charging a small percentage from both ends: borrowers and lenders. “Depending on the type of investors and companies, we charge 0.5% to 3%,” added Gupta.

Related News

Community platform Hack2Skill raises $1 Mn in debt and equity

EntrackrEntrackr · 1y ago
Community platform Hack2Skill raises $1 Mn in debt and equity
Medial

Community platform Hack2Skill has raised $1 million in debt and equity financing round co-led by Recur Club and String Ventures. Founded in 2021 by Samkit Sharma, Hack2Skill is an operator of a hackathon platform intended for communities and corporations to manage hackathons in a better way. The platform features a suite of tools that help communities and corporations to manage hackathons, including registration, team matchmaking, event timeline, internal chat, and more, enabling companies to upskill developers by providing them with a platform to learn new skills, build projects, and earn rewards. Also Read: Recur Club plans to deploy Rs 2,000 Cr in 2024: Interview with Eklavya Gupta Hack2Skill claims to have a community of more than 2.5 million tech enthusiasts and focuses on empowering its community to find innovative solutions collaboratively by organising hackathons, workshops, and boot camps. Recur Club has disbursed over $100 million to over 500 companies, including Ustraa, Rage Coffee, Moveinsync, Keka HR, Xoxodays, and others. Last month, it invested in skincare brand Conscious Chemist.

Recur Club launches debt offerings for startups beyond Series A and SMEs

EntrackrEntrackr · 1y ago
Recur Club launches debt offerings for startups beyond Series A and SMEs
Medial

Debt marketplace for startups Recur Club has announced its latest credit offering, Recur Scale for financing Series A, B, and beyond startups and SMEs with revenues of Rs 40 crore and above. It will provide debt offerings of up to Rs 100 crore or about $12 million, the company said in a release. Recur Scale is available for a wide range of sectors such as SaaS, e-commerce, manufacturing, EV, D2C, agritech, and others. The credit offerings for startups and SMEs include secured term loans, venture debt, acquisition financing, operating leases, working capital loans, bill discounting, and vendor financing, among others. According to Recur Club, it plans to deploy a total of Rs 1,000 crore with the Recur Scale program for startups and SMEs, along with an additional Rs 2,000 crore through its Recur Swift program for startups in FY25. Founded in 2021 by Abhinav Sherwal and Eklavya Gupta, Recur Scale uses AI-backed matchmaking to connect borrowers with relevant lenders for efficiently discovering, comparing, and selecting credit offers. The company has partnered with over 120 marquee lenders, such as InCred, Tata Capital, Aditya Birla Capital, among others., and targets to be the one-stop solution for the financing of startups. Earlier this month, Recur Club had partnered with InCred, a new-age financial platform, to disburse Rs 300 crore to early and mid-range startups. In August last year, Recur Club also launched $10 million worth Regreen Fund to back startups actively working towards a greener and more sustainable future.

Recur Club launches Rs 150 Cr fund for D2C brands on QCP

EntrackrEntrackr · 6m ago
Recur Club launches Rs 150 Cr fund for D2C brands on QCP
Medial

Recur Club launches Rs 150 Cr fund for D2C brands on QCP Recur Club, a debt marketplace for startups and SMEs, has launched a Rs 150 crore ($18 million) fund to accelerate the growth of D2C brands in the quick commerce sector. This initiative aims to provide growth and working capital for these brands to acquire additional inventory or boost marketing efforts. The fund targets loan disbursal within seven days. Recur Club’s debt offerings are designed to meet the unique financial needs of businesses across various revenue and profitability stages. The Indian quick commerce market is expected to expand at a CAGR of over 25% leading up to 2030, and the D2C sector is anticipated to exceed $60 billion by 2027. Recur Club says that this new fund aligns with its aim to fuel the growth of ‘Make-in-India’ startups, particularly in the quick commerce segment of the D2C market. Some notable brands that have benefited from its funding include Ustraa and Wellversed. “With more than half of the 300 consumer brands we've financed utilizing quick commerce platforms, it's clear that these businesses are primarily investing in scaling inventory to keep pace with consumer demand and employing strategic marketing efforts,” said Eklavya Gupta, CEO & co-founder of Recur Club. Recur Club offers loans to startups and businesses, ranging from Rs 50 lakhs to Rs 100 crore within 48 hours by linking their financial data. In collaboration with InCred, it has deployed Rs 300 crore in funding aimed at supporting early and mid-stage startups. Recur Club has committed to deploying Rs 2,000 crore in debt funding for startups and SMEs through Recur Scale and Rs 1,000 crore to MSMEs through Recur Swift in this financial year. As part of this initiative, the company has launched its "Recur Scale" facility, which offers up to Rs 100 crore in funding for individual startups or SMEs. Over the last three years, Recur Club has disbursed over Rs 500 crore to D2C businesses, comprising 30% of its overall portfolio and spanning companies with revenues ranging from ₹1 crore to Rs 300 crore. It is backed by institutional investors like InfoEdge Ventures, Village Global, LC Nueva, and Titan Capital.

Kreedo secures Rs 10 Cr debt funding from Recur Club

EntrackrEntrackr · 7m ago
Kreedo secures Rs 10 Cr debt funding from Recur Club
Medial

Edtech platform Kreedo Early Childhood Solutions has secured Rs 10 crore in debt funding from Recur Club, a prominent debt marketplace for startups and SMEs. Kreedo had previously raised $4 million in Series A funding from Heritas Capital and UBS Optimus Foundation to enhance learning ecosystems. The proceeds will be deployed towards fuelling its growth and expansion plans, enhancing product offerings and scaling operations across India, Kreedo said in a press release. Co-founded in 2012 by Mridula Shridhar and Manikandan Krishnan, Kreedo provides a non-franchise solution for preschools and schools in India. Its curriculum is designed to help children develop literacy, numeracy, and other skills through play-based activities. The platform's curriculum is based on the idea that children learn best through a 'Concrete to Abstract' or 'Practical to Theory' approach. The curriculum combines indoor and outdoor games and toys to help children learn to explore and develop skills. According to the Bengaluru-based company, it focuses on improving education in over 350,000 affordable private schools across India, which cater to low-income families and charge less than Rs 30,000 annually. The company claims that it has demonstrated an impressive revenue growth rate of over 35% year-on-year for the past three consecutive years. 'It has been a pleasure working with Manikandan and witnessing Kreedo’s incredible growth journey over the past couple of years. Their intelligent approach to capital management has enabled them to hyperscale effectively while preserving significant equity.' said Eklavya Gupta, co-founder & CEO of Recur Club. Kreedo may compete directly or indirectly with other companies in this space are Kinderly, Seed Schools, Sudiksha Knowledge Solutions, Blue Blocks, Hello Kids amongst others. Recur Club is a capital platform, enabling companies to raise debt capital tailored to their business needs with a dedicated capital expert. The platform aims to deploy Rs 2,000 crore in debt funding for startups and SMEs through Recur Scale and Rs 1000 crore to MSMEs through Recur Swift in this financial year. It has backed startups such as Ustraa, Rage Coffee, Moveinsync, Keka HR, Xoxodays, and others. It competes with other debt financing platforms like GetVantage, Velocity, and Klub.

Technodysis secures Rs 10 Cr in debt from Recur Club

EntrackrEntrackr · 5m ago
Technodysis secures Rs 10 Cr in debt from Recur Club
Medial

Technodysis secures Rs 10 Cr in debt from Recur Club Bengaluru-based IT startup Technodysis has secured Rs 10 crore in debt funding from Recur Club, a debt marketplace for startups and SMEs. This funding is intricately structured, blending both secured and unsecured debt, spanning the fiscal years 2023 and 2024. The proceeds will be utilized to enhance its ability to scale operations, develop product offerings, and strengthen its presence in key international markets, Technodysis said in a press release. Founded in 2020 by Nithyananda Nayak, Technodysis specializes in a range of IT services, including software development, cloud computing, cybersecurity, data analytics, and AI applications. With a growing footprint, it has expanded to establish offices in the United States, the United Kingdom, and Dubai, in addition to its headquarters in India. Technodysis states that it leverages cutting-edge technology to drive digital transformation and optimize business operations. It continues to focus on delivering tailored solutions that enhance operational efficiency and foster innovation across a diverse client base. "It’s inspiring to witness Technodysis’s rapid growth. We aim to empower high-potential startups like Technodysis with the financing they need to succeed. This partnership exemplifies our commitment to fostering innovation and supporting the scaling of technology solutions," said Eklavya Gupta, co-founder & CEO of Recur Club. Technodysis has escalated its revenue from Rs 6 lakh in FY 2021 to Rs 20.25 crore in FY 2024. Looking ahead, the company projects revenue of Rs 35 crore for FY 2025, with a target of achieving Rs 200 crore over the next three years.

CollegeDekho secures Rs 40 Cr debt funding from Recur Club

EntrackrEntrackr · 2m ago
CollegeDekho secures Rs 40 Cr debt funding from Recur Club
Medial

CollegeDekho secures Rs 40 Cr debt funding from Recur Club CollegeDekho, an online platform that helps students choose the right college, has secured a structured debt funding of Rs 40 crore from debt marketplace Recur Club. Early in this month, the company had raised Rs 30 crore (around $3.5 million) from Lighthouse Canton. In December 2021, it also closed a $35 million Series B round led by Winter Capital, ETS Strategic Capital, Calega, and Man Capital. The proceeds will be allocated towards driving growth, enhancing technological advancements, and ensuring operations as the company prepares for the upcoming admission season, CollegeDekho said in a press release. Co-founded in 2015 by Ruchir Arora, Rohit Saha, and Saurabh Jain, CollegeDekho offers an online platform for college discovery, enrollment, and learning. The company provides students with information about colleges, courses, and careers, and helps them find suitable programs. The platform also offers B2B solutions to colleges, including digital marketing and student recruitment services. It helps universities and colleges to offer future-skill-orientated degrees, thereby enhancing the student’s overall learning experience and equipping them with the necessary skills to thrive in the job market. “At Recur Club, we recognise the crucial role of platforms like CollegeDekho, which is dedicated to enhancing higher education guidance in India. Supporting CollegeDekho highlights our commitment to promoting growth strategies that benefit educational institutions,” said Eklavya Gupta, co-founder & CEO of Recur Club. As per market research, India's higher education sector is projected to triple from $55 billion in 2023 to $180 billion by 2035. Over the years, CollegeDekho claims to have offered data on over 35,000 colleges and various courses. In the past year alone, it recorded more than 225 million website sessions and provided free guidance to nearly 4 million students, helping 60% of India’s private college admits. It has facilitated over 200,000 college admissions in the last seven years, contributing upwards of Rs 5,000 crore in fee income to its partner higher education institutions. In its latest financial results, CollegeDekho saw a 32.2% increase in revenue to Rs 215.6 crore in FY24 from Rs 163 crore in FY23.

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