Revenue-based financing platform Klub has announced its plans to disburse Rs 200 crore to small and medium-sized enterprises (SMEs) during the 2024 festive season. This initiative aims to enhance sales on major e-commerce platforms such as Amazon, Flipkart, and Myntra by providing the necessary funding for SMEs to maintain inventory and pre-plan their marketing efforts.
Success and Current Plans
Last year, Klub disbursed Rs 100 crore to support small businesses during the festive season. The funds helped boost sales on significant e-commerce platforms by aiding SMEs in inventory management and marketing strategies. This year, Klub plans to double its commitment, infusing Rs 200 crore into direct-to-consumer (D2C) brands across more than 45 sectors, including beauty and personal care, fashion and apparel, and cloud kitchens and restaurants.
Beneficiaries and Sectors
Klub’s diverse funding initiative will benefit numerous sectors and notable brands. Some of the brands that have previously secured investments from Klub include Monrow Shoes, BRB Chips, Berrylush, and Potful. This broad focus underscores Klub’s commitment to driving growth across various industries.
How Klub Facilitates Funding
Klub offers a range of funding structures, including term loans, credit lines, and revenue financing, with amounts up to Rs 30 crore available in a single tranche. The Bengaluru-based firm collaborates with supply partners, particularly leading non-banking financial companies (NBFCs) like U GRO Capital, to provide these funds. This partnership aims to address the anticipated 10-12% growth in festive sales and the projected surge in the e-commerce industry to $111 billion this year.
Leadership Comments
Since its founding in 2019 by Anurakt Jain and Ishita Verma, Klub has deployed more than 1,700 investment rounds, enabling growth for over 650 brands. The company partners with NBFCs, high-net-worth individuals (HNIs), financial institutions, and its SEBI-registered fund to provide growth capital to digital businesses and SMEs.
“We are excited to double our commitment to Rs 200 crore this year, supporting a broader range of sectors and driving significant growth for Indian retailers. This initiative is in response to the anticipated 10-12% growth in festive sales and the e-commerce industry’s expected surge to $111 billion this year,” said Anurakt Jain, Co-founder and CEO at Klub.
Competitors and Market Position
Klub competes with other revenue-based financing firms such as GetVantage, Velocity, Clearco, CRED Mint, Wayflyer, and KredX. The company raised $20 million in a seed funding round in 2021 from investors, including Peak XV’s growth program Surge, Alter Global, GMO Venture Partners, and 9Unicorns.
With the festive season approaching, Klub’s initiative to disburse Rs 200 crore to SMEs will provide significant support to small and medium-sized businesses. This funding will help them manage inventory, pre-plan marketing strategies, and ultimately boost sales on major e-commerce platforms.
