Klub has raised a debt financing round by Northern Arc Capital, to scale its embedded financing offering for e-commerce merchants, to provide flexible growth capital.
India’s digital D2C/e-commerce ecosystem presents an opportunity of over $100 bn by 2025, yet merchants are often constrained by timely access to flexible capital options. To solve this, Klub has partnered with India’s leading e-commerce platforms to provide seamless access to flexible capital for the 200,000+ SMEs across these platforms. Merchants on online marketplaces will now be able to access Klub’s financing options either directly on the platforms they sell on or via their preferred payment gateways, and logistics partners.
Speaking about the funding, Sudharsan Venkatakrishnan, Vice President, Klub said, “Klub’s embedded financing solution helps merchants on our partner marketplaces get easy access to capital without leaving the marketplace ecosystem. We are excited to partner with Northern Arc to offer this compelling solution to our rapidly growing customer base.”
Commenting on their recent investment in Klub, Bama Balakrishnan, COO, Northern Arc Capital, stated, “Northern Arc has always believed in partnering with pioneering companies like Klub that disrupt the existing ecosystem, at an early stage. Our ability to understand the potential and risks of underlying sectors and markets helps us underwrite these institutions and provide them with suitable products through their lifecycle.”
After the funding, Klub is on track to scale its embedded platform offering by 20x and support digital SMEs with growth capital ranging from ₹2 lakhs to ₹30 crores. The company recently raised $20 mn in one of the largest seed rounds in India and has grown 18x over the last year.
Klub is India’s leading Revenue Based Financing platform providing flexible growth capital to digital-first companies and SMEs. Klub provides funding for recurring marketing, inventory, and CAPEX spending to a wide variety of digital-first companies across e-commerce, D2C, ed-tech, SaaS, and the broader digital commerce spectrum. Revenue Based Financing takes a revenue share as returns instead of equity dilution, fixed EMIs, and personal guarantees, making it ideal for a post-Covid financing ecosystem. Klub has raised two rounds of capital from 9Unicorns, Surge (Sequoia Capital India’s accelerator fund), Alter Global, GMO VenturePartners, and marquee global angels.