The business-to-business (B2B) finance platform Recur Club revealed on April 19 that it had received $30 million in its seed round. Zomato, PB Fintech investment InfoEdge Ventures, and Silicon Valley firm Village Global were among the investors in the round.
This is one of the country’s largest seed deals, at $30 million, at a time when investments have slowed after a frantic year for entrepreneurs. The funding also underscores investor interest in B2-B enterprises that make debt and money more accessible to businesses.
Aditya Birla Finance, U GRO Capital, InCred Financial Services, Titan Capital, Adept Ventures, and Lykke Capital also participated in the round. S Srinivasan, MD of Kotak Investments, Bahram Vakil, Senior Partner of AZB & Partners, Archana Priyadarshini, General Partner of PointOneCapital, and Dhruvil Sanghvi, founder of LogiNext, were among the angel investors in the round.
“As the number of recurring revenue companies (specifically SaaS) grows at a rapid pace, Recur Club provides them with an alternative financing platform that complements VC capital, provides a quick turnaround with attractive rates, and creates a new asset class for investors seeking fixed income yields,” said Amit Behl, Partner at InfoEdge Ventures.
Recur Club, founded in 2021 by IIM-Calcutta alumni Abhinav Sherwal and Eklavya Gupta, allows businesses to sell future client revenue for cash in as little as 48 hours.
The money will be used to accelerate expansion and expand the company’s sales and technical teams, according to the company.
By integrating with its accounting, invoicing, and subscription management systems, the trading platform evaluates a customer’s important indicators. It then decides if the company is eligible to trade in real-time.
All businesses with a predictable annual revenue from current clients of at least $100k are eligible to join Recur Club. For growth-stage businesses, financing starts at $10,000.
Every firm with predictable recurring revenue streams, such as SaaS, services, EdTech, D2C subscription, media, insurance, and so on, can benefit from Recur Club.
Recur Club began operations in India and has partnered with companies such as Avatar Ventures-backed Heal Software, Keka HR, Apis partner-backed Xoxoday, co-living startup Hooliv, and others.
Institutional investors can bid on providing funding to these consumers through the platform.
“The only difficulty with recurring revenue firms is that their revenues lag behind their CAC spends,” stated Eklavya Gupta, Founder, and Co-CEO of Recur Club.
“This chasm was filled by diluting shares or granting massive revenue cuts. We implemented an efficient system that works the same way your customers pay you today, resulting in a 5x increase in revenue in the last two quarters.”
Recur Club, according to Gupta, has worked with over 500 companies and has an annual recurring revenue (ARR) of over $150 million. By the end of 2022, the company hopes to have over 2,000 clients and an ARR of over $1 billion.
“We concentrate on aiding creators at every level of their growth path by unlocking CAPS,” stated Abhinav Sherwal, Founder and Co-CEO of Recur Club (Capital, Advisory, Partnership, and Sales). Members of our ‘Club’ get access to over $500k in specifically curated discounts from AWS, Microsoft, and Hubspot. Our tech-first strategy improves speed, flexibility, and simplicity, all of which contribute to our goal of becoming a full-stack financial suite for entrepreneurs.”