Fintech platform Recur Club has closed its seed round by mopping up USD 30 million (over Rs 229 crore) in a mix of equity and debt from Infoedge Ventures, Village Global and others.
Singapore and New Delhi-based Recur Club’s trading platform allows companies to trade their future customer revenue at a small discount to get capital upfront within 48 hours against their recurring revenue. The funding round was led by Infoedge Ventures and Village Global, a Silicon Valley fund backed by the likes of Jeff Bezos, Bill Gates and Mark Zuckerberg, along with marquee institutions, including Aditya Birla Finance, Ugro Capital, and Incred Financial Services, according to a statement on Tuesday.
The seed round also saw participation from industry stalwarts, including Titan Capital (Kunal Bahl, Rohit Bansal), Kotak Investment’s MD S Srinivasan, AZB & Partners founder Bahram Vakil, Pointonecapital’s Archana Priyadarshini, Loginext’s Dhruvil Sanghvi, Adept Ventures and Lykke Capital, the company said in a statement.
Recur Club, founded in 2021 by two IIM Calcutta batchmates — Abhinav Sherwal and Eklavya Gupta — provides companies an alternative financing platform that complements VC capital while creating a new asset class for investors looking for fixed income yields. Eklavya Gupta, founder and co-CEO of Recur Club said that recurring revenue companies have highly predictable cash flows but the problem is that the revenue is lagging their cash needs.
This gap normally is funded by diluting equity or by offering huge discounts on revenue. But our way is much more efficient as we offer timely funds against the borrower’s past and present as well as future cash flows, he noted. Recur Club plans to use the funds to accelerate growth by delivering better product experience, expand sales and engineering teams, co-founder Abhinav Sherwal said.