Recur Club, an innovative fintech platform facilitating non-dilutive growth capital for companies with recurring revenues, has closed its $30 million seed funding round, as a combination of equity and debt allocation.
Singapore-headquartered Recur Club’s trading platform has unlocked an all-new asset class - Recurring Revenue which allows companies to trade their future customer revenue at a small discount to get capital upfront within 48 hours.
The funding round was led by InfoEdge Ventures (early-stage investors in Zomato and Policy Bazaar who recently went public) and Village Global (Silicon Valley fund backed by the likes of Jeff Bezos, Bill Gates, Mark Zuckerberg) with financing for the platform from marquee institutions including Aditya Birla Finance, U GRO CAPITAL, and Incred Financial Services. The transaction was advised by Capwise Financial.
“As number of recurring revenue companies (specifically SaaS) increase rapidly, Recur Club provides them with an alternative financing platform which complements VC capital and provides a quick turnaround with attractive rates while creating a new asset class for investors looking for fixed income yields,” said Amit Behl, Partner at InfoEdge Ventures.
The round also witnessed participation from industry stalwarts including Titan Capital (Kunal Bahl, Rohit Bansal), Kotak Investment’s MD (S Srinivasan), AZB & Partners founder and Senior Partner (Bahram Vakil), PointOneCapital’s General Partner (Archana Priyadarshini), LogiNext’s founder (Dhruvil Sanghvi), Adept Ventures and Lykke Capital.
Recur Club plans to use the funds raised to accelerate their growth by delivering best-in class product experience, expand its sales and engineering teams with an endeavor to become the largest and most accurate financial metrics benchmark for recurring revenue companies.
Founded in 2021 by two batchmates from IIM Calcutta, Abhinav Sherwal and Eklavya Gupta, Recur Club’s trading platform assesses a customer’s key metrics by integrating with its accounting, billing and subscription management systems. It then makes an instant decision on whether the company qualifies for trading. Recur Club works with all companies with predictable annual revenue from existing customers of at least $100k. Financing ranges from $10,000 up to several million dollars for growth stage companies.
“Recurring Revenue Companies (multi-trillion-dollar market) have highly predictable cash flows with the only problem being lagging revenues vs their CAC spends. This gap was being funded by diluting equity or by offering huge discounts on revenue. We introduced an efficient way which works like your customers paid you today that has resulted in us to achieve five-fold growth in the last two quarters with over 500-plus companies and $150M+ of listed ARR (expected to reach 2000-plus companies and listed ARR of $1B+ by end of 2022). $28M debt allocation which we have been able to raise to finance companies reiterates investor trust in our platform, team and underwriting,” said Eklavya Gupta, founder and co-CEO at Recur Club.
Recur Club is for every company with predictable recurring revenue streams across SaaS, Services, Ed-Tech, D2C Subscription, Media, Insurance, etc. Starting their operations in India, Recur Club is currently working with companies including the likes of Avatar Ventures backed Heal Software, Keka HR, Apis partner backed Xoxoday, co-living firm Hooliv etc. Recur Club’s platform facilitates institutional investors to bid to provide the financing to these customers.
“We obsess about helping founders at every step of their growth journey by unlocking CAPS (Capital, Advisory, Partnership and Sales). Our ‘Club’ members get access to $500k+ worth of specially curated deals from AWS, Microsoft, Hubspot. Our tech-first approach is a significant improvement in terms of speed, flexibility and convenience all of which translates into our vision of becoming a full stack financial suite for founders,” said Abhinav Sherwal, founder and co-CEO, Recur Club.