In a move aimed at addressing the funding challenges faced by early- and mid-stage startups in India, Recur Club and Incred have joined forces to bolster debt financing opportunities. The collaboration aims to provide expedited debt financing solutions tailored for high-growth companies while facilitating easier access to capital for ambitious founders.
Eklavya Gupta, the Co-Founder & CEO of Recur Club, highlighted the focus areas of this partnership, stating, “The partnership will concentrate on financing SaaS, tech services, D2C, B2B marketplaces, and electric vehicle companies.” With a vision to disburse ₹300 crore of debt financing in 2024 through the collaboration with Incred, Recur Club aims to empower startups to fuel their growth trajectories efficiently.
The significance of debt financing as an alternative working capital source has been steadily gaining traction, particularly among growth-stage startups. Against the backdrop of the prevailing funding landscape, characterised by what some term as a “funding winter,” the relevance of such alternative funding mechanisms becomes even more pronounced.
Gupta further emphasised the effectiveness of debt financing for business growth, stating, “We believe debt is a great form of financing which founders are using very effectively these days to grow their business.” He noted that businesses have managed to achieve substantial year-on-year growth solely through debt financing, without diluting their ownership stakes.
In another development, Relso, a furniture cloud factory, secured $840,000 in a pre-seed round led by Venture Catalysts and Inflection Point Ventures. Anshul Choubey, the Co-Founder & CEO of Relso, highlighted plans to utilise the funds for global expansion, talent acquisition, and vertical expansion, underscoring the importance of strategic funding in driving business objectives.
Meanwhile, the union territory of Jammu & Kashmir (J&K) unveiled a new startup policy aimed at fostering the growth of 2,000 startups in the region by 2027. Despite long-standing challenges posed by terrorism and instability, Kashmir’s startup ecosystem is gradually gaining traction. CNBC-TV18’s Shivani Bazaz delves into the challenges and opportunities shaping the future of Kashmir’s startup landscape, signalling a promising shift in the region’s entrepreneurial ecosystem.
Watch the accompanying video for the entire discussion.