New Delhi: Recur Club, a debt marketplace for startups and SMEs has announced the launch of a Rs 150 crore fund to accelerate the growth of D2C Brands in the Quick Commerce Sector. Announced on National Startup Day, this initiative aims to provide growth and working capital for these brands to acquire additional inventory or boost marketing efforts.
Over the last three years, Recur Club has disbursed over Rs 500 crore to D2C businesses, comprising 30% of its overall portfolio and spanning companies with revenues ranging from Rs 1 crore to Rs 300 crore. Its tailored offerings reflect a deep understanding of D2C business models and unit economics.
This new fund aligns with Recur Club’s vision to fuel the growth of ‘Make-in-India’ startups, particularly in the quick commerce segment of the D2C market.
For businesses with an annual revenue of over Rs 5 crore, financing options typically include cash flow-based loans, revenue-based financing, and unsecured term loans. For companies with annual revenue exceeding Rs 40 crore, working capital demand loans and secured term loans are available to support their growth. An additional funding option to consider is sales invoice discounting based on receivables from e-commerce and quick commerce transactions. This approach leverages outstanding invoices to unlock cash flow, making it a practical solution for businesses in these fast-paced sectors to manage their working capital needs efficiently.
Eklavya Gupta, CEO and co-founder of Recur Club said, “The Indian quick commerce market is expected to expand at a CAGR of over 25% leading up to 2030, propelled by evolving consumer preferences towards speed and convenience. The D2C sector, which is anticipated to reach beyond $60 billion by 2027, is poised to drive this growth further. In recent months, we’ve seen a tripling in demand for debt financing, largely due to the burgeoning quick commerce sector outstripping traditional e-commerce. 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.”Recur Club is backed by marquee institutional investors like InfoEdge Ventures, Village Global, LC Nueva, and Titan Capital. Recur Club’s new fund underscores its commitment to supporting India’s entrepreneurial ecosystem, particularly within the D2C sector, paving the way for the next generation of innovation.
This aligns with Recur Club’s broader strategy, previously outlined in FY 2024, to provide Rs 2,000 crore in debt financing through ‘Recur Scale’ and additional Rs 1,000 crore through ‘Recur Swift’, enhancing its role in fostering strategic growth across the industry.
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