The initiative is geared to provide growth and working capital for such brands to acquire additional inventory or spur marketing efforts
New Delhi: Recur Club, a debt marketplace for startups and SMEs, has announced Rs 150 crore fund to drive the growth of D2C (direct to consumer) brands in the Quick Commerce space.
The initiative is geared to provide growth and working capital for such brands to acquire additional inventory or spur marketing efforts.
Over the last three years, Recur Club has disbursed over Rs 500 crore to D2C businesses, comprising 30 per cent of its overall portfolio and spanning companies with revenues ranging from Rs 1 crore all the way to Rs 300 crore.
Announcing the Rs 150 crore fund, Recur Club, in a release said, the fund aligns with its vision to fuel the growth of ‘Make-in-India’ startups, particularly in the quick commerce segment of the D2C market.
Some notable brands that have benefited from Recur Club’s funding include Ustraa and Wellversed.
This special fund targets loan disbursal within seven days, according to the release.
Eklavya Gupta, CEO and Co-Founder, Recur Club noted the Indian quick commerce market is expected to expand at a CAGR of over 25 per cent leading up to 2030, propelled by evolving consumer preferences towards speed and convenience.
“The D2C sector, which is anticipated to reach beyond $60 billion by 2027, is poised to drive this growth further,” Gupta said.
The demand for debt financing has tripled in recent months, largely due to the burgeoning quick commerce sector outstripping traditional e-commerce.
Businesses are primarily investing in scaling inventory to keep pace with consumer demand and employing strategic marketing efforts, Gupta added.
