KLUB- A REVENUE-BASED FINANCING START-UP

A fintech start-up founded by Anurakt Jain (CEO) and Ishita Verma(COO) in August 2019, which provides a capital platform for upcoming brands to grow. The start-up is spread in the India and Singapore, while aiming for a pan-Asia presence.. The company involves bunch of technology professionals, venture capitalists, and investment bankers. The core team numbers up to 60 with high skilled expertise from IIT, IIM, and NIT background. The start-up is determined to create revenue-based financing through technology and data for the brands. Revenue-based financing is a type of financing where the firms guarantee a certain percentage in their future ongoing revenues to investors who invested in their capital.

While drawing the roots of their start-up, they undertook vigorous market research across products, needs and demands, concept adaptations, market validations. At the end of every business story, they reached to the same conclusion, that these business face difficulty in raising their capitals. They grabbed this opportunity to establish a way for that small business to raise their funds and help thrive their client’s business with transparency.  Klub combines in-depth data-driven analytics, financial product innovation, high frequency collections and community engagement as primary source to finance the demanding brands. A highlighting that pulls brands towards seeking investment from Klub is that no demand/impact on equity ownership or board constitution of their clients.

It is a type of D2C e-commerce (Direct2Customers), herein, the business directly sell their products online to the customer without any intermediary. It uses the omnichannel marketing strategy where the customer can access all the products through any social media.

Klub offers different products to brand looking for investments, ranges between 5 lakh-30 crores with zero equity dilution or personal guarantees. 

ProductFunding RangeTime PeriodRevenue ShareFunding Initiated byExclusive Charges
Klub Blaze₹5 Lakhs- ₹1 crore3 to 9 monthsRepayments based on the percentage of revenuesOffered in partnership with NBFCs[1]No hidden charges Repay 1.05x-1.12x of funding amount All-inclusive
Klub Gro₹25 Lakhs- ₹5 crore12 to 18 months1-10% revenue shareFunded by Klub’s patron investor networkNo hidden charges Repay 1.17x-1.2x of funding amount All-inclusive
Klub Aceler8₹50 Lakhs- ₹30 crore12 to 18 months1-10% revenue shareFunded by Klub’s SEBI registered fundNo hidden charges Repay 1.17x-1.2x of funding amount All-inclusive

The team has open streams for every person with varied interests:

  1. Brands- Providing business with growth capital for marketing, managing inventory and assisting financially. Perks include:
    1. It has easy repayments with transparent fees
    1. Financial help is assisted ranging from ₹5 Lakhs to ₹30 crore
    1. Repayment limit is 3-30 months
  2. Embedded Partners- Provides capital for your already existing merchandise. Perks include:
    1. Finance for payment gateways, marketplaces, logistics and platforms
    1. Boost revenues and GMV[2]
    1. Improve merchant retention- ability to keep existing customers
  3. Patron Investors- Provides for various investment options for those who are a step ahead from the rest. Perks include:
    1. 18-25% IRRs[3]
    1. Robust risk assessment frameworks
    1. Monthly repayments

Process of Applying

ApplyAssessmentFundingRepayment
Put in your business motive and financial data securelyEvaluation of brand and creates a reportConfirm commercials and sign documentation to access fundingPayment made through revenue shares until the flat fee is paid off completely

Market-Targets

There major brand targets are

  • Fashion, beauty & personal care, lifestyle & accessories
  • FMCG, health & wellness, food & beverage, cloud kitchens 
  • Direct to consumer & subscription businesses, consumer apps & games

Other than these, Klub funds following businesses:

  • Gaming Companies
  • SaaS[4] companies
  • Digital SMEs[5]
  • FMCGs[6]
  • E-commerce merchants
  • D2C businesses
  • Subscription companies
  • Cloud kitchens
  • Local businesses

Success Stories:

The start-up has helped more than 2500+ businesses, built more than 1700+ crore portfolio revenue, more than 50% positive growths observed after delivering and 25% were women led brands.

  1. Pre-seed round

Klub raised $2 million pre-seed round from Surge, angel investors. The institutional investors includes big names like AngelList, Better Capital, EMVC Fintech Fund, Tracxn Labs and angels. Other investors from AngelList including Naveen Tewari and Piyush Shah of InMobi, Kunal Shah of Cred, Rajesh Yabaji of Blackbuck, Ramakant Sharma of Livspace, Amit Gupta of Yulu, Shailendra Singh of MarketsandMarkets, Nipun Mehra, formerly of Pine Labs, Nitin Sharma of InCrypt, founders of EzCred, Nishant Verman of Flipkart, and Shradha Sharma of YourStory participated in raising funds too.

  • Oxyzo Financial Services X Klub

The two companies entered into a deal to disburse Rs 100 crore to fund digital SMEs across the country. In the statement, the pooled in resources were to provide fast and friendly SME-lending. Through the Klub platform, SME has the chance to avail the benefits of revenue-based financing up to Rs 3 crore.

  • CoffeeMug X Klub

Klub essentially enetered into partnership with CoffeeMug to diversify and benefit the portfolio of curated member base of enetrprenuers, investors and business leaders of the latter, by providing them a platform to imvest in brands of their interest. The deal unveiled an investment of Rs. 100 crore in D2C brands

  • Furlenco X Klub

Furlenco, an online furniture rental start-up raised debt with the help of Klub’s initiative of revenue based financing against future recurring revenue. The company directed its funds towards expanding their operations without compromising their equity. The company tapped into Klub’s biggest fund by far, Acceler8, which rolled 2 quarters prior to this investment.

  • Bewakoof X Klub

Online apparel company Bewakoof was one of the many brands who seek their funds from Klub’s Acceler8 product. The company deployed the revenue- based finance of Rs. 200 crore entoirly to the Saas and consumer companies. The fund will invest from Rs 50 lakh to Rs 20 crore in digital businesses for their marketing, inventory, and capital expenditure spends. 

Conclusion

Companies far and wide across India and few international ones have reached to Klub to draw funds for their business. The products launched by the company in so far have turned out to be useful to their clients to grow their businesses. Other than their revenue-based financing, Klub publishes blogs and articles on their website providing insights to market investors and baby-boomers. With their start-up, Klub adds up more and more success stories of their clients and frequently make headlines in the world of investment and finance.


[1] Non-Banking Financial Company

[2] Gross Merchandise Value

[3] Internal Rate of Return

[4] Software as a Service

[5] Small-to-medium enterprise

[6] Fast-moving consumer goods

References

https://klubworks.com/

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

IF YOU ARE INTERESTED IN PARTICIPATING IN THE SAME, DO LET ME KNOW.

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The copyright of this Article belongs exclusively to Ms. Aishwarya Sandeep. Reproduction of the same, without permission will amount to Copyright Infringement. Appropriate Legal Action under the Indian Laws will be taken.

If you would also like to contribute to my website, then do share your articles or poems at secondinnings.hr@gmail.com

In the year 2021, we wrote about 1000 Inspirational Women In India, in the year 2022, we would be featuring 5000 Start Up Stories.

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