Recur Club, a leading debt marketplace for startups and SMEs, has announced a ₹150 crore fund to support direct-to-consumer (D2C) brands operating in the quick commerce sector. This initiative aims to provide these brands with essential working capital to expand inventory and enhance marketing efforts, with loan disbursals targeted within seven days.
About Recur Club and Its Founders
Founded in 2021, Recur Club was established by Eklavya Gupta and Abhinav Sherwal, both alumni of the Indian Institute of Management Calcutta. Eklavya Gupta, who serves as Co-Founder and Co-CEO, has a background in investment management, having worked with Ivanhoé Cambridge and Kotak Investment Advisors Ltd. Abhinav Sherwal, also Co-Founder and Co-CEO, previously held the position of Senior Product Manager at Gartner, where he was responsible for significant growth in user engagement and successful product launches.
Beneficiary Brands and Their Founders
Several notable D2C brands have already benefited from Recur Club’s funding, including Ustraa and Wellversed.
- Ustraa, a popular men’s grooming brand, was founded in 2015 by Rahul Anand and Rajat Tuli, who previously co-founded the lifestyle brand Happily Unmarried. Ustraa offers a range of grooming products, including beard oils, face washes, and colognes.
- Wellversed, a wellness-focused startup founded in 2018 by Aanan Khurma, Aditya Seth, and Ripunjay Chachan, specializes in building and scaling wellness businesses across multiple segments.
Strategic Focus on Quick Commerce
India’s quick commerce market is projected to grow at a compound annual growth rate (CAGR) of over 25% leading up to 2030, driven by changing consumer preferences for speed and convenience. Meanwhile, the D2C sector is expected to surpass $60 billion by 2027. Recur Club’s Co-Founder and Co-CEO, Eklavya Gupta, has noted a significant surge in demand for debt financing, particularly among consumer brands leveraging quick commerce platforms. Currently, over half of the 300 consumer brands financed by Recur Club are investing in scaling inventory and marketing to meet rising demand.
Tailored Financial Solutions
Recur Club's funding model is designed to cater to businesses across various revenue and profitability stages. For companies with annual revenues exceeding ₹5 crores, financing options include:
- Cash flow-based loans
- Revenue-based financing
- Unsecured term loans
For enterprises surpassing ₹40 crores in revenue, additional options include:
- Working capital demand loans
- Secured term loans
Additionally, businesses can leverage sales invoice discounting, unlocking cash flow from pending receivables linked to e-commerce and quick commerce transactions.
Proven Track Record
Over the past three years, Recur Club has disbursed more than ₹500 crores to D2C businesses, which make up around 30% of its total lending portfolio. The company aims to fuel the growth of "Make-in-India" startups, with a focus on the rapidly evolving quick commerce segment.
Our Opinion on the News
Recur Club's latest initiative is a strategic move that aligns with the growing demand for quick commerce solutions in India. The funding offers a timely boost for D2C brands looking to scale operations rapidly and meet consumer expectations in an increasingly competitive space. With flexible financing options and quick disbursal timelines, this fund positions Recur Club as a key player in the evolving business ecosystem.