Recur Club has claimed that more than 50 per cent of Indian SaaS (software-as-a-service) companies are estimated to have a US presence, out of which a majority were banking with SVB
New Delhi-based Recur Club, an Indian trading platform has allocated $15 million to all Indian Founders affected by the Silicon Valley Bank Crisis. As per the statement, the company will not charge platform fees to support and bolster the ecosystem.
Recur Club has claimed that more than 50 per cent of Indian SaaS (software-as-a-service) companies are estimated to have a US presence, out of which a majority were banking with SVB. It is safe to assume that more than 1000 Indian start-ups have been directly affected by the SVB fiasco and there will be many more who are likely to be indirectly affected—the affected companies ranging from early-stage to late-stage growth stage.
Many companies had SVB as the sole bank account or had majority liquidity parked there. Caught in this crisis, they are now forced to arrange a banking partner and liquidity immediately to sustain operations, the statement added. In an attempt to solve the issue, it claims to facilitate the opening of bank accounts in GIFT city within 24-48 hours by taking special exemptions to enable the startup community to flourish.
Talking about the latest development, Eklavya Gupta co-Founder of Recur Club, said, “This incident tells us about the criticality of diversification be it customers, banking, or investors in a business. Recur Club has received interest from more than 100 start-ups regarding immediate Payroll financing and managing short-term expenses.”
Recur Club recently worked with companies that have predictable annual revenue of at least $1,00,000 from existing customers, greater than one year of vintage, and more than three months of runway. Since its inception, it has funded more than 300 companies.
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