Recur Club and ah! Ventures have partnered to provide up to Rs 50 crore as non-dilutive growth capital for ah! Ventures portfolio companies. The collaboration aims to create a pool of investors that will nurture early-stage start-ups and help them navigate throughout their entrepreneurial journey.
With venture capital investments dwindling due to the pandemic, Recur Club’s alternative financing model provides an opportunity for start-ups to access growth capital within 48 hours, said Recur Club. Recur Club and ah! Ventures aim to invest and nurture over 100 start-ups by the end of 2024, particularly those in the subscription and recurring revenue space.
"Our unique approach to financing will continue to be in high demand despite the global economic conditions. Our collaboration with ah! Ventures Network will allow us to support a diverse array of start-ups. We look forward to helping start-ups navigate the current economic climate and support their growth together," said Eklavya Gupta, founder and co-chief executive officer (CEO) at Recur Club.
ah! Ventures is a fundraising platform that claims to have over 62,000 entrepreneurs, 3,000 investors and a monthly pipeline of about 600 business plans. Its Angel Fund, a SEBI registered Category I AIF-VCF-Angel Fund with a target corpus of Rs 100 crore (~USD 14 million) and a green shoe option of up to Rs 50 crore (about $6 million), aims to invest Rs 3-5 crores in each start-up.
"This partnership with Recur Club allows us to expand our reach and support a diverse array of start-ups. We eagerly anticipate the potential outcomes of this collaboration, particularly for start-ups in the subscription and recurring revenue space," said Amit Kumar, co-founder at ah! Ventures Fund.
Recur Club is Asia is a revenue exchange that enables organisations to trade their future revenue streams for upfront growth capital. Companies can raise up to 50 per cent of their ARR within 48 hours without equity dilution or obligation of restrictive debt. The platform currently works with start-ups that have a predictable annual revenue from existing customers of at least $100,000, have been in operations for over a year, and are currently at more than three months of runway.
The collaboration between Recur Club and ah! Ventures is a game-changer for start-ups in need of growth capital, and it is expected to attract attention from media outlets and investors alike.