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Sequoia-backed revenue-based financing platform Klub marks final close of its Rs 200 cr maiden fund

Klub will be investing capital in the range of Rs 5 lakhs to Rs 30 crore in businesses for a tenure of 1-24 months, the company said.

Bengaluru / September 05, 2022 / 09:00 AM IST

Sequoia Capital-backed revenue-based financing platform Klub has marked the final close of its maiden Rs 200 crore revenue-based debt fund to back consumer tech companies ahead of the festive season.

Acceler8, a SEBI (Securities and exchange board of India)-registered Category II Alternative Investment Fund, which was launched in December last year, has invested in about 33 companies including BluSmart, Ben Franklin, Bewakoof, Furlenco and SMOOR Chocolates among others to date, the Sequoia-backed company said in a statement on September 5. Klub also said that it has disbursed 30 percent of its total value.

With the close of this fund, Klub aims to invest in growth-stage businesses during the festive season, the company said. Klub will be investing capital in the range of Rs 5 lakhs to Rs 30 crore in businesses for a tenure of 1-24 months, the company said on September 5.

"From the demand side, we have invested across the spectrum in local early-stage businesses to unicorns and pre-IPO companies. We are glad to successfully close the fund right at the start of the festive season to work with many more businesses," Anurakt Jain, co-founder and CEO at Klub, told Moneycontrol.

One of Klub’s strategic partners, Credence Family Office, helped the revenue-based financing company to close the fund, Klub said.The fund’s advisory council includes industry leaders like Naveen Tewari, founder and CEO (chief executive officer), InMobi Group, Vidit Aatrey, co-founder CEO, Meesho, and Dr Apoorva Ranjan Sharma, co-founder, 9Unicorns.

“We are always inclined to partner with capital platforms that focus on the cash flow of businesses to determine its growth. With Klub’s Revenue Based Financing Fund, we are able to do this without any equity dilution,” said Mitesh Shah, Founder and CEO, Credence Family Office said.

Founded in 2019 by Jain and Ishita Verma, Klub provides flexible funding up to Rs 30 crore to digital businesses and SMEs (small medium enterprises) with recurring revenue. The company partners  with leading NBFCs (non-banking finance companies), HNIs (high net-worth individuals), financial institutions, and its own SEBI-registered funds to provide growth capital.

Klub offers different capital structures for businesses across all stages for recurring marketing, inventory, and capex expenses. The company claims to have invested in more than 600 rounds for over 300 brands across India. In August last year, Klub had raised $20 mn in its Seed round led by India, in what was one of India’s largest-ever Seed funding rounds.

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Nikhil Patwardhan
Nikhil Patwardhan
first published: Sep 5, 2022 09:00 am