Klub Raises $20 Mn Funding The platform will deploy INR 500 crore over the next few quarters to local brands and digital SMEs
By Prabhjeet Bhatla •
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Revenue based financing platform, Klub recently announced that it has raised $20 million. The funding round saw participation from existing investors 9Unicorns, Seed fund, and Surge, Sequoia Capital India's rapid scale-up program, along-with Alter Global (US) and GMO VenturePartners (Japan) as new investors.
"Klub is the clear market leader in India with its platform approach and deep data-driven risk analytics. We are extremely bullish on revenue based financing and as early backers we are proud to see Klub quickly become the market leader. At 9Unicorns, our investment thesis is designed to be founder-first and back products that work for both small and large businesses, and have a value proposition for tier-II/III India. In Klub we found the perfect mix," commented Dr. Apoorva Ranjan Sharma, co-founder and president, 9Unicorns.
Founded by Anurakt Jain and Ishita Verma, Klub provides flexible growth capital ranging from INR 2 lakh to INR 30 crore with zero equity dilution or personal guarantees. Klub provides funding for recurring marketing, inventory, and capex spends to a wide variety of digital-first companies and SMEs across e-commerce, D2C, edtech, SaaS and broader digital commerce spectrum.
"This unprecedented phase has opened the doors for locally loved brands to be visible to a global audience by accelerating digital shifts in technologies and behaviors. However, we still see a significant credit gap arising from the inability of traditional capital sources to underwrite and provide sufficient support to foster this momentum. To solve this massive problem, GMO Venture Partners is very excited and honored to be partnering with Klub to expand its engaged community as the leading revenue-based financing platform," said Ryu Muramatsu, founding partner and director, GMO VenturePartners.
Klub utilizes deep data-driven analytics to drive faster funding decisions, and ensures their cost of capital appropriately reflects the risk inherent in businesses across different stages and sectors. Over 500 businesses have explored funding with Klub recently, as 2020-2021 saw an unprecedented move from offline to online in India.
"The digital revolution in India has leveled the playing field for local businesses, and we are thrilled to have a front-row seat in this multi trillion-dollar opportunity. We believe that the foundation of a truly great company lies in solid partnerships. We are humbled by the confidence shown in us by our partners – company founders, capital providers, e-commerce and fintech partners, and our investors. India's digital commerce ecosystem requires more than "one size fits all' financing, and with this round, we can further our mission of enabling growth for loved brands," added Anurakt Jain, co-founder and chief executive officer, Klub.
The current seed round, which saw participation from marquee global angels as well, includes a majority portion of equity and capital commitments to the platform. The investment round was represented by Wadhwa Law Offices as the legal counsel, led by Rachita Nadig. The company had previously raised a $2 million pre-Seed round at an idea stage led by Surge and multiple angel investors.
Revenue based financing is a rapidly emerging complement to venture capital and traditional debt, with the flexibility of repayments happening as a percentage of future revenues. Klub plans to utilize the capital to expand its team, accelerate development of its tech and data platform, and expand its product offerings and market segments to make Klub the fastest way to raise capital.
