Klub raises $20 million in seed funding
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, said Anurakt Jain, co-founder and chief executive officer (CEO), Klub
PremiumRevenue based financing platform, Klub, has raised $20 million as a part of its new funding from investors US-based Alter Global and Japan-based GMO VenturePartners.
The round also saw participation from existing investors 9Unicorns, and Sequoia Capital India’s accelerator program, Surge.
The two-year old startup provides flexible growth capital to businesses, ranging from ₹2 lakhs to ₹30 crore with zero equity dilution or personal guarantees.
Klub provides funding for used-cases including recurring marketing, inventory, and capital expenditure (capex). It extends this financing to digital-first companies as well as small and medium enterprises across domains of e-commerce, direct-to-consumer and edtech.
“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," said Anurakt Jain, co-founder and chief executive officer (CEO), Klub.
In the last two years, the company has financed over 500 businesses, it said in a statement.
“We are extremely bullish on revenue-based financing. 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 2 and 3 India. In Klub we found the perfect mix.", said Dr Apoorva Ranjan Sharma, co-founder and president at 9Unicorns.
Earlier in January, this year, the company had raised $2 million as a part of its pre-seed round led by Surge along with other angel investors.
“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," said Ryu Muramatsu, founding partner and director, GMO VenturePartners.
Klub competes with Mumbai-based revenue financing platform GetVantage, which recently raised $5 million, through equity and debt, as a part of its seed funding led by Chiratae Ventures.
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