A Rs 150 crore ($18 million) fund has been established by Recur Club, a debt marketplace for startups and SMEs, to boost the expansion of direct-to-consumer (D2C) brands in the quick commerce space. Recur Club claims that the goal of this program is to give these brands the growth and working capital they need to buy more inventory or increase their marketing.
The goal of this special fund is to disburse loans in seven days. The debt products offered by the platform are made to accommodate the distinct financial requirements of companies at different phases of revenue and profitability. Businesses using quick commerce platforms connected to POs will benefit from this fund’s assistance with inventory, marketing expenditures, and growth planning.
Market research predicts that the D2C sector will reach over $60 billion by 2027 and that the Indian quick commerce market will grow at a compound annual growth rate (CAGR) of more than 25% until 2030.
According to Recur Club, this new fund is in line with its mission to support the expansion of “Make-in-India” businesses, especially in the D2C market’s quick commerce sector. Among the well-known companies that have profited from its funding are Wellversed and Ustraa.
“With more than half of the 300 consumer brands we’ve financed utilizing 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 Eklavya Gupta, CEO & co-founder of Recur Club.
A marketplace for debt financing, Recur Club provides loans to new and existing companies. Companies that sign up and link their financial information can receive a loan of between Rs 50 lakhs and Rs 100 crore in as little as 48 hours. To support early and mid-stage startups in 2024, it has invested Rs 300 crore in funding in partnership with InCred.
During this fiscal year, Recur Club has pledged to fund startups and SMEs with Rs 2,000 crore through Recur Scale and MSMEs with Rs 1,000 crore through Recur Swift. The company has introduced its “Recur Scale” facility as part of this initiative, which provides small and medium-sized businesses (SMEs) or individual startups with up to Rs 100 crore in funding.
Recur Club has distributed more than Rs 500 crore to D2C companies over the past three years; this amounts to 30% of its total portfolio and includes businesses with revenues between ₹1 crore and Rs 300 crore. Prominent institutional investors such as InfoEdge Ventures, Village Global, LC Nueva, and Titan Capital support it.
