Synopsis
Revenue-based financing, in which the investor gets a regular share of the business’ income, was more or less absent in India before the pandemic. Now, dozens of local startups are choosing this route.
ETtech
(Illustration: Rahul Awasthi/ETtech)
Mumbai: Since the start of 2020, startups in India have been experimenting with a new way of raising funds called revenue-based financing (RBF). Here, the investor gets a regular share of the business’ income until a certain amount, decided in advance, has been paid. This amount is typically several times the investment.
Popular in the US, the revenue-based financing model took off in India during the pandemic as young companies struggled to raise funds. Though it costs startups more to raise funds this way, revenue-based financing continues to gain traction among early-stage, direct-to-consumer brands, e-commerce startups, and small and medium enterprises that have recently gone online. One of the reasons is that it’s eas
Bengaluru (Karnataka) [India], January 20 (ANI/NewsVoir): Klub, a pioneer in revenue-based financing in India, today announced facilitating an undisclosed amount of investment in Indian fashion and lifestyle E-commerce brand - The Label Life. The brand, curated and styled by Style Editors Malaika Arora, Sussanne Khan, and Bipasha Basu specialises in trend-focused, elevated clothing, home decor, and accessories while personally guiding the shopping experience for consumers.