Recur Technologies PTE, a financing platform, on Tuesday said it has raised $30 million (around Rs 230 crore) in a mix of equity and debt led by InfoEdge Ventures and Village Global, with participation from Aditya Birla Finance Ltd and Incred Financial Services.
The round also saw participation from Titan Capital, Kotak Investment’s MD S. Srinivasan, AZB & Partners founder and Senior Partner Bahram Vakil, PointOneCapital’s General Partner Archana Priyadarshini, LogiNext’s Founder Dhruvil Sanghvi, Adept Ventures and Lykke Capital.
The fintech startup operates in India through its Delhi-based subsidiary called Recur Club Technologies. It plans to use the funds to expand its sales and engineering teams.
“Recurring Revenue Companies (multi-trillion-dollar market) have highly predictable cash flows with the only problem being lagging revenues vs their CAC spends. This gap was being funded by diluting equity or by offering huge discounts on revenue.
We have introduced an efficient way that works like your customers paid you today which has resulted in us achieving 5x growth in the last 2 quarters with over 500 companies and $150 million of listed ARR. $28 million debt allocation which we have been able to raise to finance companies reiterates investor trust in our platform, team and underwriting,” said Eklavya Gupta, Founder and Co-CEO at Recur Club.
“We obsess about helping founders at every step of their growth journey by unlocking CAPS (Capital, Advisory, Partnership and Sales). Our ‘Club’ members get access to $500k+ worth of specially curated deals from AWS, Microsoft, Hubspot,” added Abhinav Sherwal, Founder and Co-CEO, Recur Club.
Recur Club's platform, which was founded in 2021 by IIM Calcutta alumni Abhinav Sherwal and Eklavya Gupta, allows institutional investors to compete to offer funding to these businesses.
It provides funding to companies with predictable recurring revenue streams in different industries, including SaaS, services, edtech, D2C subscription, media and insurance.
Currently, it has clients across Heal Software, which is backed by Avatar Ventures, Keka HR, Xoxoday, which is backed by Apis Partners, and Hooliv, a co-living firm.
Capwise Financial served as the transaction's advisor.