Recur Club looks to deploy Rs 1,000 crore through new credit offering to finance late-stage start-ups, SMEs

One of India’s leading debt marketplaces for start-ups, Recur Club, has announced its latest credit offering, Recur Scale, for financing Series A, B, and beyond start-ups and SMEs with revenues of Rs 40 crore and above.

Talking to Business Today, Eklavya Gupta, Co-founder and CEO of Recur Club, said with Recur Scale the company has entered the larger business segment that are late-stage companies in Series A, B, C funding rounds and so on.  

Recur Scale will offer debt financing of up to Rs 100 crore, targeting sectors such as SaaS, tech, e-commerce, manufacturing, EV, D2C, agritech, and others. The credit options for start-ups and SMEs include secured term loans, venture debt, acquisition financing, operating leases, working capital loans, bill discounting, vendor financing, and more.

“Recur Scale was born out of a need expressed by our growing customers. We typically started with early stage startups in 2021, financing somewhere between Rs 50 lakh to Rs 4 crore. As their revenues increased with our cash flow-based credit, their credit needs also evolved. There was a clear demand for diverse credit structures within the Recur Club ecosystem,” Gupta added.

With this new product, Gupta says they are increasing their average ticket size between Rs 5 crore to Rs 50 crore.

Recur Club plans to deploy Rs 1,000 crore through the Recur Scale programme and Rs 2,000 crore via the Recur Swift programme for start-ups in FY25. Recur Scale uses AI-backed matchmaking to help borrowers find, compare, and select credit offers efficiently. Transparency is a core principle in these initiatives.

The company has partnered with over 120 marquee lenders, such as InCred, Tata Capital, Aditya Birla Capital, etc., and targets to be the one-stop solution for the financing of startups.

In a pilot, Recur Scale witnessed higher adoption amongst start-ups and SMEs around Rs 38 crore, accounting for 15% of Recur Club’s monthly Gross Transaction Value (GTV), which is approximately Rs 250 crore, Gupta says. In the ongoing quarter, Recur Club aims to double this figure by adding new customers and expanding its reach.

Earlier this month, Recur Club partnered with InCred, a new-age financial platform, to disburse Rs 300 crore to early and mid-range start-ups.

Till date, Recur Club has financed around 1,000 companies including Ustra, Xoxoday, Freightify, Wellversed, and Kelwonwith, with around Rs 2,000 crore disbursed, Gupta says.