As digitization continues to grow rapidly across the world, there is a strong ecosystem of SaaS platforms, digital markets, and brand players arise to democratize the scope. While this has made it easy for businesses to transition from retail to omnichannel and online, traditional funding platforms are still struggling to adapt to new business models.
The first digital companies are currently enjoying a golden age and have a market opportunity of 10 trillion dollars. And the supporting ecosystem partnership will propel that growth.
Launched in 2020 by Ishita Verma and Anurakt Jain, financial innovation and building solid partnerships to stimulate growth.– a player in income-based financing, a pioneer in
âWe have grown 40 times and made over 150 investments in the past year thanks to our unique product offering. Our goal is to provide digital-first businesses with access to fast, flexible and scalable capital. With Klub 360, we aim to work with 360 leading digital companies through flexible funding and a deep partnership ecosystem â, informs Anurakt.
Anurakt Jain, co-founder and CEO, Klub
âWhile there has been tremendous growth in the number of ecosystem players supporting early digital businesses, we firmly believe that the power of the combined ecosystem will be greater than the sum of its parts. Klub 360 is an initiative driven by this conviction. During the year, we aim to work with needle movers in space – from companies that need financing to companies that are pillars of the first digital economy, âhe adds.
Through its revenue-based funding model, Klub takes a share of the revenue in the form of returns instead of diluting equity or fixed IMEs, making it ideal for startups looking for quick cash without the arduous pitching process.
With over 25 years collective experience in the investment sector, Ishita and Anurakt realized that the unique approach of traditional modes of private equity and debt capital does not always meet the financing needs of every business. Many entrepreneurs struggle to access capital, despite strong products, increasing incomes, and a loyal customer base. This is even more evident in the case of local digitally driven businesses.
How it works?
Klub is an ideal investment platform for companies that need flexible and non-dilutive capital, but at the same time, want to keep full control of their business. Depending on the company raising capital, Klub’s platform matches it with the right capital provider. Thanks to its hybrid market configuration, Klub has made more than 150 investments.
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Klub asks startup founders to plug their revenue channels through third-party integrations into its platform, after which its proprietary credit engine delivers initial offers within hours and lists of end conditions within days. Companies can have capital in just a few days, making Klub a very efficient, fast and scalable financing partner.
Beyond capital, Klub connects the startup with different types of ecosystem partners who can help it evolve. These include solutions for digital marketing, influencer marketing, loyalty, buy it now, pay later, logistics, distribution, and more.
Klub’s USP remains in its hybrid market approach. The flexible revenue-based funding This approach helps founders and investors come together in an ecosystem. These days, in addition to just providing financing to businesses, it is imperative to match them with the right capital partner, depending on the risk and return profile, allowing the founders to focus on growing the business.
Before co-founding Klub, CEO Anurakt was an intrapreneur at InMobi, and part of the team that created two global companies, A look and TruFactor, as poles of growth. He also brings years of professional experience as a venture capitalist with DFJ and Vertex, and as an angel investor. Anurakt graduated from IIT Delhi, holds a Wharton School MBA, and is a CFA charter holder.
Ishita, who is Klub’s COO, has more than 9 years of experience in the early stage investment banking, investment and public / private equity markets. She graduated from Lady Shri Ram, Delhi and holds a MBA from IIM Bangalore.
With a team size of 30, Klub is looking to add more members to its team for its next phase of growth. Klub’s current team has diverse backgrounds in credit, venture capital, investment banking, law, lending and risk analysis.
According to a recent report by Allied market research, the global revenue-based financing market was valued at $ 901 million in 2019. This number is expected to reach $ 42 billion by 2027, with a staggering 61.8% CAGR from 2020 to 2027.
As with most revenue-based financing services, Klub takes a percentage of the revenue generated by the companies to which it provides financing. The size of the fundraising tickets varies between Rs. 2 lakh to Rs 30 crore. Klub also repeats fundraising rounds and has completed up to five fundraising rounds with a few companies as the income ladder.
Anurakt claims that Klub is currently pioneering the revenue-based finance space in India with its two products, Klub Blaze & Klub Gro, organized to meet the needs of brands across all industries and stages.
While Klub Blaze, with its shorter terms, caters to brands with monthly revenues of up to Rs. 50 lakh, Klub Gro is recommended for brands making more than Rs. 50 lakh in income.
Klub has been instrumental in fundraising for top companies like The Man Company, SMOOR, Wallmantra, Third Wave Coffee, TagZ Foods, Wellbeing Nutrition, Tjori and Pipa Bella, etc.
Funding and future plans
Throwing Klub 360 – an initiative to evolve digitally-driven businesses through flexible funding and a deep partnership ecosystem, Klub aims to drive the growth of the digital ecosystem.
âKlub 360 will provide a level playing field for all digitally focused businesses and increase financial reach by working with businesses in Tier II / Tier III cities and those started by female co-founders. With a growing need for fast and flexible capital, our mission now is to work with 360 companies during the year and provide capital to all deserving companies, to truly unlock growth, âsaid Anurakt.
In August, the income-based finance startup had raised one of the biggest rounds of funding of $ 20 million existing investors 9Unicorns and Surge, Sequoia’s seed investment program, as well as Alter Global (US) and GMO Venture Partners (Japan) as new investors. The current cycle has also seen the participation of renowned global angels.
Klub’s competitors include GetVantage, Velocity and N + 1 Capital, among others. At the international level, some of the biggest players in the RBF space are Clearco, Pipe, with Uncapped, Wayflyer, Jenfi to name a few.
Speaking on the same topic, Anurakt said, âWe believe in the complementary nature of revenue-based funding, with all traditional funding options. As businesses grow, they will always need a combination of financing options, each with their own advantages and disadvantages. Our mission is to generate more growth for our partners, and we view flexible and scalable non-dilutive capital as the first critical input. “