Business-to-business (B2B) fintech platform Recur Club Tuesday said it has joined hands with Titan Capital to provide Rs 100 crore subscription-based financing to its portfolio companies.
The company said in a statement that it is allocating this capital to those companies that Titan Capital invested in, from its last month’s $30 million capital raise.
Companies can trade their future customer revenue at a small discount to get capital upfront within 48 hours, the statement added.
Recur Club, founded in 2021 by IIM Calcutta alumni Abhinav Sherwal and Eklavya Gupta, allows institutional investors to compete to offer funding to businesses.
“The current uncertain global macroeconomic situation has resulted in rising interest rates and liquidity squeeze which has resulted in capital from risky instruments like VC equity drying or investors pushing companies for down rounds. This has further accentuated interest in non-dilutive financing solutions like Recur Club,” said Eklavya Gupta, Founder and Co-CEO at Recur Club.
“Recur Club’s solution perfectly complements VC capital by enabling founders to efficiently balance their capital stack. This capital can be used to fund expenses with a payback period between 12-24 months and equity capital can be utilised for expenses with uncertain outcomes,” said Bipin Shah, Partner at Titan Capital.
Recur Club claims to work with those companies who have predictable annual revenue from existing customers of at least $100,000, greater than one year of vintage and more than three months of runway.
Titan Capital is a venture capital firm established in 2015. The Gurugram-based venture capital firm prefers to invest in consumer internet, direct-to-consumer brands, software-as-a-service (SaaS) platforms, artificial intelligence and computer vision sectors.
Since its inception, Titan Capital has identified and provided sees capital to more than 200 startups, including six unicorns Ola, Mamaearth, Urban Company, Razorpay, Snapdeal and OfBusiness.