Sequoia-Backed Klub Gives Credit to BluSmart, Hero Electric, and Others

• ByStartupStory     |    January 16, 2023

Klub, a revenue-based finance platform, announced on Monday that it had granted loans to six companies in the amount of Rs 50 crore (about $6 million). 

Vegan skincare brand Neemli Naturals, electric ride-sharing company BluSmart Mobility, plastic-free toy outlet Ariro Wooden Toys, home decor brand Ecofynd, solar energy firm Freyr Energy, and electric scooter manufacturer Hero Electric are among these enterprises. 

Revenue-based finance (RBF) is a business concept that involves receiving returns depending on the firm’s recurring revenue. Startups that obtain money in this manner commit a percentage of their current gross revenue as payback over time. 

The eco-friendly product industry has developed geometrically during the last 7 years or so internationally, and India is no exception, according to the company’s investment statement. According to a TerraChoice research study, the eco-friendly product market has grown by 73% in the last 5-7 years, and more new companies and goods are entering the market. 

“India is very different from the one that we knew ten years ago. Sustainable industry a decade ago was hardly spoken about, whereas today, at least 60% of Indians are ready to pay a premium price for a sustainable product,” said Anurakt Jain, Co-founder and chief executive at Klub.

“We want to support this new pendulum of change by helping sustainable brands grow in the Indian startup ecosystem, even more in 2023 and future years to come. We are aiming to have at least 40% of our portfolio with such brands,” he added. 

Jain and Ishita Verma founded Klub, which offers flexible development funding ranging from Rs 2 lakh to Rs 30 crore with no personal guarantees or dilution of stock. In India, the firm has supported over 380 brands from various industries. 

Furlenco, an online furniture rental firm run by Bengaluru-based House of Kieraya (HoK), secured debt from Klub last year in exchange for potential recurring income. 

For direct-to-consumer products like SMOOR, The Label Life, Petsutra and Tjori, TagZ Foods, among others, Klub has received funding.

Klub’s Aceler8 fund has provided funding to late-stage online businesses since its establishment in December 2021 for the objectives of inventory and expansion. The fund typically sells tickets for between Rs 50 lakh and Rs 30 crore. 

A wide range of SMEs and digital-first businesses are served by the firm’s finance for ongoing marketing, inventory, and CAPEX expenditures. Faster funding choices are made by Klub using its data-driven underwriting methodology, with a concentration on the cost of capital properly representing the underlying risks in company across industries. 

By using APIs (application programming interfaces) to obtain data from third parties, like banking and financial statements, GST, and other sources, it assesses a brand’s risk profile.

Follow Startup Story