Klub is all set to invest in over 350 companies and amount of INR 250 crore. These companies work in the e-commerce and online consumer business. Till today, Klub has funded over 55 digital-first businesses including The Man Company, Eat.Fit, Healthy Cravings, and Tjori.
Klub is a fintech platform that provides revenue-based financing. As a hybrid marketplace, Klub sources capital from individual partners and institutions, for a combination of social awards and monthly returns. Its model of taking revenue shares in returns instead of EMI or equity dilution makes it favorable for the post-pandemic financing ecosystem.
Presently, there are over 7.5 lakh sellers on e-commerce platforms like Flipkart and Amazon, which currently serve over 6,000 brands making the addressable market size at $100 billion in the upcoming years. Further, the direct-to-consumer (D2C) brands are no longer limited to tier 1 or tier 2 cities, as tier 3 and 4 cities are witnessing an entrepreneurship surge.
However, there is a catch, according to NASSCOM, 70% of start-ups have financial reserves which will last for less than 3 months, while 40% of start-ups are in the process of slowing down. Also, smaller businesses are unable to pay back the lenders owing to the Covid 19 lockdown. Klub also helps in diversifying financial sources for the enterprise as one size fits all approach of debt and equity will not work while raising finance.