On April 19, the business-to-business (B2B) fintech platform said that Recur Club raised $30 million in its seed round. The round was led by Zomato and PB Fintech investor InfoEdge Ventures, and Silicon Valley fund Village Global. It was one of the largest seed rounds in the country at $30 million at a time when investment slowed after a crazy year for startups.

The funding also reflects investor interest in B2B startups that give companies more accessible access to debt and capital. Aditya Birla Finance, U GRO Capital, InCred Financial Services, Titan Capital, Adept Ventures, and Lykke Capital also participated in the round. Angel investors in this round include MD S Srinivasan of Kotak Investment, Bahram Vakil, founder and senior partner of AZB & Partners, Archana Priyadarshini, general partner of PointOneCapital, and Dhruvil Sanghvi, founder of LogiNext.

“As the number of recurring income companies (especially SaaS) proliferates, Recur Club provides them with an alternative financing platform that replenishes venture capital and offers quick turnarounds at attractive investors creating new asset classes,” said Amit Behl, Partner at InfoEdge Ventures. Founded in 2021 by IIM-Calcutta alumni Abhinav Sherwal and Eklavya Gupta, Recur Club allows companies to trade their future client revenue at a slight discount to receive up-front funding within 48 hours.

Recur Club works with all companies with predictable current customer annual revenue of at least $100,000. Financing for growth-stage companies starts at $10,000. Recur Club provides each company with a predictable, recurring revenue stream spanning SaaS, services, edtech, D2C subscriptions, media, insurance, etc. Recur Club has started operations in India and is working with companies including Avatar Ventures-backed Heal Software, Keka HR, Apis Partners-backed Xoxoday, co-living company Hooliv, and more. The platform facilitates institutional investors bidding to finance these clients.

“Recurring revenue companies have highly predictable cash flow; the only problem is that revenue lags behind CAC spending,” said Eklavya Gupta, founder, and co-CEO of Recur Club. “The gap is filled by diluting equity or offering a huge revenue discount. We’ve introduced an efficient way to pay you like your customers today, which has allowed us to grow 5x over the past two quarters.”

Gupta added that Recur Club works with more than 500 companies and manages more than $150 million in annual recurring revenue (ARR). The company expects this to grow to more than 2,000 customers and an ARR of over $1 billion by 2022.

Abhinav Sherwal, Founder and Co-CEO of Recur Club, said: “We are committed to helping founders by unlocking CAPS (Capital, Advisory, Partners, and Sales). Our ‘club’ members can access AWS, Microsoft, and Hubspot secure special curated deals worth over $500k. Our tech-first approach is a major improvement in speed, flexibility, and convenience, all of which translate into full-stack finance where we became founders The vision for the kit.”