Klub raises $20 million to turbocharge revenue based financing for home-grown digital brands
India’s leading revenue based financing platform, Klub, has raised $20 million. The funding round saw participation from existing investors 9Unicorns, India’s largest seed fund, and Surge, Sequoia Capital India’s rapid scale-up program, along-with Alter Global (US) and GMO Venture Partners (Japan) as new investors.
Founded by Anurakt Jain and Ishita Verma, Klub provides flexible growth capital ranging from Rs 2 Lakhs to Rs 30 Crores 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 e-commerce, D2C, ed-tech, SaaS and broader digital commerce spectrum.
Klub utilizes deep data-driven analytics to drive faster funding decisions, and ensures their cost of capital appropriately reflects the risk inherent in businesses across different stages and sectors. Over 500 businesses have explored funding with Klub recently, as 2020-2021 saw an unprecedented move from offline to online in India.
“Klub is the clear market leader in India with its platform approach and deep data-driven risk analytics. 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.”, commented Dr. Apoorva Ranjan Sharma, Co-founder and President at 9Unicorns.
The current seed round, which saw participation from marquee global angels as well, includes a majority portion of equity and capital commitments to the platform. The investment round was represented by Wadhwa Law Offices as the legal counsel, led by Rachita Nadig. The company had previously raised a $2 Mn pre-seed round at an idea stage led by Surge and multiple angel investors.
“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 behaviors. 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 honored 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.
Revenue based financing is a rapidly emerging complement to venture capital and traditional debt, with the flexibility of repayments happening as a percentage of future revenues. Klub plans to utilize the capital to expand its team, accelerate development of its tech and data platform, and expand its product offerings and market segments to make Klub the fastest way to raise capital.
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Commenting on the fund-raise Anurakt Jain, co-founder and CEO said, “The digital revolution in India has leveled 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, e-commerce 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.”
Klub is India’s leading revenue based financing platform providing flexible growth capital to digital-first companies and SMEs. Klub provides funding for recurring marketing, inventory, and capex spends to a wide variety of digital-first companies and SMEs across e-commerce, D2C, ed-tech, SaaS and broader digital commerce spectrum. Revenue based financing takes a revenue share as returns instead of equity dilution, fixed EMIs, and personal guarantees, making it ideal for a post-Covid financing ecosystem. Klub has raised two rounds of capital from 9Unicorns, Surge (Sequoia Capital India’s accelerator fund), Alter Global, GMO VenturePartners, EMVC Fintech Fund and marquee global angels.