Trifecta Capital invests Rs 20 Cr in Klub

Revenue-based financing platform Klub has raised Rs 20 crore or $2.7 million in a debt financing round led by Trifecta Capital.

The funding proceeds will be used to ramp up its technology, product and assets under management (AUM), said Klub in a press release.

Founded by Anurakt Jain and Ishita Verma, Klub provides growth capital ranging from Rs 2 lakh to Rs 30 crore with zero equity dilution or personal guarantees. The two-year-old startup provides funding for recurring marketing, inventory, and capex spends to digital-first companies and SMEs across e-commerce, D2C, edtech and SaaS. 

Klub claims that more than 500 businesses have explored funding with the company recently. While that is easy enough, the challenge will lie in its credit appraisal metrics and collection ability in case of accounts going bad. The company was also a part of the second batch of Sequoia’s accelerator program Surge. It had previously raised $20 million in a seed round.

Klub directly competes with GetVantage which claims that its portfolio has nearly 100 brands. Other startups in the segment include Recur, Velocity and IDEABAG.