The prominent debt marketplace, Recur Club specifically targeting those startups and SMEs, has said that it is launching a ₹150 crore fund to accelerate the growth of Direct-to-Consumer (D2C) brands within the quick commerce space. The firm launched this move on National Startup Day and will provide such brands with essential growth and working capital for acquiring more inventory and marketing.
PC: The Hindu Business Line
Till date, Recur Club has been able to disburse over ₹500 crore to D2C businesses across its portfolio at 30%. Their revenue varies from ₹1 crore to ₹300 crore, which means Recur Club deeply understands the D2C business model and its unique unit economics.
Supporting ‘Make-in-India’ Startups
The new fund fits into the vision of Recur Club to support ‘Make-in-India’ startups, especially within the emerging quick commerce segment of the D2C market. For businesses having annual revenues in excess of ₹5 crore, cash flow-based loans, revenue-based financing, and unsecured term loans would be available. Companies with revenues above ₹40 crore would receive working capital demand loans and secured term loans that would help to scale up. Sales invoice discounting based on e-commerce and quick commerce receivables will be available, hence business finances will be unlocked efficiently for cash flow.
Eklavya Gupta, CEO and co-founder of Recur Club, said that the Indian quick commerce market is expanding at a compound annual growth rate (CAGR) of more than 25% up to 2030. The D2C segment is expected to reach more than $60 billion by 2027 and will continue driving this growth. Gupta noted a significant increase in demand for debt financing, particularly as the quick commerce sector continues to outpace traditional e-commerce. More than half of the 300 consumer brands financed by Recur Club are utilizing quick commerce platforms, primarily investing in scaling inventory and strategic marketing efforts to meet consumer demand.
Commitment to Entrepreneurial Ecosystem
Recur Club has received significant investments from prominent institutional investors, such as InfoEdge Ventures, Village Global, LC Nueva, and Titan Capital. The new fund marks an important milestone in Recur Club’s mission to foster the next generation of Indian entrepreneurship, especially in the D2C sector.
This is part of the larger strategy outlined for FY 2024 by Recur Club to provide debt financing of ₹2,000 crore through ‘Recur Scale’ and an additional ₹1,000 crore through ‘Recur Swift’, which would further augment its role in facilitating strategic growth across the industry.
