Recur Club launches Rs 150 Cr fund to boost D2C brands on quick commerce platforms
Recur Club's funding will help D2C brands with additional working capital needs for inventory and marketing on quick commerce platforms.
Debt marketplace Recur Club launched a Rs 150 crore fund on Thursday to support direct-to-consumer (D2C) brands on quick commerce platforms.
The initiative, launched on National Startup Day, would provide D2C brands with the growth and working capital required to maintain additional inventory on these platforms and boost their marketing efforts, Recur Club said in a statement.
The fund would target loan disbursal within seven days, for various needs like inventory, marketing spending and planning growth on quick commerce. Previously, brands like Ustraa and Wellversed have availed funding from Recur Club.
"In recent months, we've seen a tripling in demand for debt financing, largely due to the burgeoning quick commerce sector outstripping traditional ecommerce. With more than half of the 300 consumer brands we've financed utilising quick commerce platforms, it's clear that these businesses are primarily investing in scaling inventory to keep pace with consumer demand and employing strategic marketing efforts," said Recur Club Co-founder and CEO Eklavya Gupta.
The debt marketplace will offer financing options, including cash flow-based loans, revenue-based financing and unsecured term loans, for businesses with an annual revenue of over Rs 5 crore. Meanwhile, companies with over Rs 40 crore in revenue can get working capital demand loans and secured term loans.
Companies can also avail of additional funding options in sales invoice discounting based on receivables from ecommerce and quick commerce transactions. This method uses unpaid invoices to boost cash flow, helping businesses in fast-moving sectors manage their working capital more effectively.
As part of its broader strategy, Recur Club will provide Rs 2,000 crore in debt financing through Recur Scale and an additional Rs 1,000 crore through Recur Swift to innovative startups.
Recur Club is backed by marquee institutional investors like InfoEdge Ventures, Village Global, LC Nueva, and Titan Capital.
Edited by Suman Singh