Revenue-based financing startup GetVantage gets NBFC licence; to raise Rs 200 Cr debt

GetVantage, a revenue-based financing platform for small and medium-sized enterprises (SMEs), has secured a Non-Banking Financial Company (NBFC) licence from the Reserve Bank of India, as it looks to bolster its direct lending proposition.

The licence will allow the firm to directly lend instead of acting only as a loan service provider (LSP). Currently, it has 10 co-lending partners (banks and NBFCs) via whom it offers loans, and will further expand the pool.

GetGrowth Capital—the NBFC arm of the fintech firm—will run the lending operations. The company said it will capitalise the NBFC with Rs 50 crore and aims to raise Rs 200 crore in total to scale up its operations.

“Being unlicensed is not an option. This milestone will enable us to accelerate our growth trajectory, expand our reach, and offer more value to our customers,” said Bhavik Vasa, Founder and CEO of GetVantage.

Founded in 2020 by Bhavik Vasa and Amit Srivastava, GetVantage offers upfront capital (non-dilutive) to SMEs, in partnership with lending partners, based on their future revenue and takes a pre-determined share of the same. 

The startup is backed by investors like Chiratae Ventures, Varanium, InCred, DMI, Sony, and Dream Incubator, and has raised about $41 million (equity and credit lines) across two funding rounds.

Over the last 18 months, GetVantage claims to have facilitated funding for over 500 new economy businesses, and is on track to hit annual disbursements of over Rs 500 crore. 

According to industry estimates, the working capital opportunity for SMEs in India is estimated to be over $300 billion. 

GetVantage joins a small group of fintech companies to have secured an NBFC licence. Among the latest is neo-banking startup Jupiter, which secured its NBFC licence in April.