Recur Club raised $30 million in its seed-funding round, the business-to-business (B2B) fintech platform said on April 19. The round was led by Zomato and PB Fintech investor InfoEdge Ventures and Silicon Valley fund Village Global.
At $30 million, this is one of the largest seed rounds in the country at a time when investments have slowed down following a frenzied year for startups. The funding also reflects the investor interest in B2B startups that are making access to debt and capital easy for companies.
The round also saw participation from Aditya Birla Finance, U GRO Capital, InCred Financial Services, Titan Capital, Adept Ventures and Lykke Capital. Angel investors in the round included Kotak Investment’s MD S Srinivasan, AZB & Partners founder and Senior Partner Bahram Vakil, PointOneCapital’s General Partner Archana Priyadarshini and LogiNext’s founder Dhruvil Sanghvi.
“As the number of recurring revenue companies (specifically SaaS) increase rapidly, Recur Club provides them with an alternative financing platform that 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.
Founded in 2021 by IIM-Calcutta alumni Abhinav Sherwal and Eklavya Gupta, Recur Club allows companies to trade their future customer revenue at a small discount to get capital upfront within 48 hours.
The company said that it planned to use the funds to accelerate growth and expand its sales and engineering teams.
The trading platform assesses a customer’s key metrics by integrating with its accounting, billing and subscription management systems. It then makes an instant decision on whether the company qualifies for trading.
Recur Club works with all companies with predictable annual revenue from existing customers of at least $100k. Financing begins from $10,000 for growth-stage companies.
Recur Club caters to every company with predictable recurring revenue streams across SaaS, services, Ed-Tech, D2C subscription, media, insurance, etc.
Starting their operations in India, Recur Club is working with companies including the likes of Avatar Ventures-backed Heal Software, Keka HR, Apis partner backed Xoxoday, co-living firm Hooliv, etc.
The platform facilitates institutional investors to bid to provide financing to these customers.
“Recurring revenue companies have highly predictable cash flows with the only problem being lagging revenues vs their CAC spends,” Eklavya Gupta, Founder and Co-CEO at Recur Club, said.
“This gap was being funded by diluting equity or by offering huge discounts on revenue. 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.”
Gupta added that Recur Club worked with more than 500 companies and has managed annual recurring revenue (ARR) of over $150 million. The company expects this to grow to over 2,000 clients with ARR of over $1 billion by the end of 2022.
Abhinav Sherwal, Founder and Co-CEO, Recur Club, said, “We obsess about helping founders at every step of their growth journey by unlocking CAPS (Capital, Advisory, Partnership and Sales). Our ‘Club’ members get access to $500k+ worth of specially curated deals from AWS, Microsoft, Hubspot. 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.”
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