Recur Club announces Rs 500 crore D2C debt fund
Recur Club, an AI-native debt platform for startups and SMEs, has announced a Rs 500 crore fund to facilitate growth capital for D2C brands in the current financial year.
The announcement comes ahead of the festive season and is designed around two capital challenges the firm identified after working with over 500 D2C brands: financing inventory and funding store or capacity expansion. Based on an average ticket size of approximately Rs 3 crore, the fund is expected to support around 150-170 D2C brands.
Recur Club structures inventory financing by enabling brands to have inventory procured on their behalf, sell it through their existing channels, and repay the financing in installments without adding debt to their balance sheets. For store and capacity expansion, Recur Club will help acquire equipment and fit-outs for new stores, with brands paying a monthly rental until the financing is repaid, turning capex into opex.
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In the current financial year, Recur Club has facilitated approximately Rs 275 crore for over 100 D2C brands, taking its cumulative capital facilitated for the D2C sector to Rs 1,200 crore. Based on Recur Club’s data from more than 5,000 D2C companies on its platform, demand for growth capital among D2C businesses typically rises by around 35% during the festive quarter.
“Packaging costs have risen by around 21% amid geopolitical tensions in the Gulf region. At the same time, quick commerce is taking a larger share of D2C sales, so brands need to stock more inventory, across more channels, earlier than ever. Our D2C fund is designed to address this timing gap and structure the repayments around your business,” said Eklavya Gupta, Co-founder, Recur Club.
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