The fund will back 80-100 D2C brands with ticket sizes ranging from INR 80 Lakh to INR 10 Cr, targeting companies with minimum annual revenue of INR 5 Cr
Recur Club has disbursed INR 500 Cr to D2C businesses so far, with plans to deploy INR 3,000 Cr through Recur Scale and Recur Swift programmes
The debt marketplace has funded more than 750 companies, including 300 D2C brands, of which over 50% are utilising quick commerce platforms
Early stage debt marketplace Recur Club has launched a INR 150 Cr ($17.46 Mn) fund to accelerate the growth of D2C brands in the quick commerce sector.
The fund, announced on National Startup Day, will provide financing to 80-100 D2C brands with ticket sizes ranging from INR 80 Lakh to INR 10 Cr.
“The Indian quick commerce market is expected to expand at a CAGR of more than 25% leading up to 2030. The D2C sector is anticipated to reach beyond $60 Bn by 2027. In recent months, we have seen a tripling in demand for debt financing, largely due to the burgeoning quick commerce sector outstripping traditional ecommerce,” Eklavya Gupta, CEO and cofounder of Recur Club, told Inc42.
The company will evaluate brands based on three key criteria – minimum annualised revenue of INR 5 Cr, presence on quick commerce platforms, and at least 10% quarter-on-quarter growth. With a seven-day disbursal timeline, the fund aims to provide financing equivalent to 2-3 months of inventory plus one month of receivable cycles.
Speaking about the performance of their portfolio, Gupta said that several D2C brands have seen 3-4X growth in monthly sales through quick commerce channels, with some scaling from INR 50 Lakh to INR 3-4 Cr in monthly revenue.
“Some brands have actually grown to INR 70 Cr in monthly sales. From our portfolio, food and snacks brands, including healthy food segments, and beauty brands have seen phenomenal growth on quick commerce platforms,” he added.
Recur Club has funded more than 750 companies, including 300 D2C brands, with more than half utilising quick commerce platforms.
Founded in 2021 by Eklavya Gupta and Abhinav Sherwal, the New Delhi-based fintech operates as a debt marketplace for startups and SMEs. The company claims to have funded more than 750 companies, including 300 D2C brands, with more than half utilising quick commerce platforms.
The new fund is part of Recur Club’s broader strategy outlined in FY24 to provide INR 2,000 Cr through ‘Recur Scale’ and INR 1,000 Cr through ‘Recur Swift’. The company, backed by InfoEdge Ventures, Village Global, LC Nueva, and Titan Capital, has already disbursed INR 500 Cr to D2C businesses, comprising 30% of its overall portfolio.
This development adds to the recent surge in fund launches within the Indian startup ecosystem. Earlier this week, Riceberg Ventures announced a $20 Mn fund targeting deeptech startups across spacetech, medtech, and AI sectors.
In December 2024, Warmup Ventures unveiled its second fund with a INR 300 Cr corpus, aiming to back 25-30 early stage startups in deeptech and climate tech. This followed Capital A’s September announcement of its INR 400 Cr Fund II focusing on manufacturing and deeptech sectors, with plans to invest $2-3 Mn across 17-20 startups.
Zerodha launched FLOSS/fund in October to support open-source software projects globally with an annual commitment of $1 Mn, highlighting the diverse funding opportunities emerging in India’s startup landscape.
