In India's dynamic economic landscape, access to timely and flexible capital is crucial for the burgeoning startup and SME ecosystem. Traditional lending models often fall short in addressing the unique needs of these high-growth entities, particularly those with fluctuating revenue but strong future potential. Recur Club Private Limited has emerged as a significant player in this space, offering an innovative approach to financing that aligns with the rhythm of a business's actual sales.
Company Overview and Background in India
Recur Club Technologies Private Limited, incorporated on June 7, 2021, has rapidly established itself as a leading revenue-aligned debt marketplace in India. With its registered office in Delhi, the company's core mission is to bridge the capital gap for high-growth Indian startups and Small and Medium-sized Enterprises (SMEs) by connecting them with a diverse network of institutional capital providers.
The business model is distinctly non-dilutive, meaning entrepreneurs can secure funding without relinquishing equity. Instead, repayments are ingeniously tied to a percentage of future revenue streams, offering a flexibility rarely found in conventional debt. Recur Club leverages advanced artificial intelligence to meticulously match eligible businesses with suitable lenders from its extensive network. The platform primarily targets companies in sectors such as Software as a Service (SaaS), Direct-to-Consumer (D2C) brands, quick commerce, and other high-growth ventures. While it caters to a broad spectrum, larger facilities generally require a minimum Annual Recurring Revenue (ARR) of 40 million rupees, with smaller loans accessible for those with an ARR of 5-10 million rupees.
Recur Club is backed by notable investors including InfoEdge Ventures, Village Global, LC Nueva, and Titan Capital. Its latest funding round saw a substantial 30 million dollar equity and debt infusion led by InfoEdge Ventures and Village Global in January 2025, underscoring investor confidence in its model and market potential. The company is spearheaded by its Co-founders and Co-CEOs, Abhinav Sherwal, an IIM Calcutta alumnus, and Eklavya Gupta, an ex-IIT alumnus, bringing a blend of financial acumen and technological expertise to the helm.
Loan Products, Interest Rates, and Terms Offered
Recur Club's product suite is designed to cater to various stages and needs of high-growth businesses, characterized by its emphasis on flexibility and revenue-linked repayments.
- Recur Spark: This product offers collateral-free financing up to 50 lakhs rupees (approximately 60,000 US dollars), ideal for businesses seeking smaller, quick capital injections.
- Recur Swift: For more substantial needs, Recur Swift provides collateral-free loans ranging up to 10 crores rupees (approximately 1.2 million US dollars), targeting businesses ready for a moderate scale-up.
- Recur Scale: This comprehensive offering includes term loans, venture debt, acquisition financing, working capital, vendor financing, and operating leases. It provides significant capital, up to 100 crores rupees (approximately 12 million US dollars), supporting larger growth initiatives and strategic expansions.
- Revenue Advances: A flexible option providing up to 50% of a company's Annual Recurring Revenue (ARR), with no predefined cap on the maximum financing, aligning directly with a business's income potential.
The loan amounts offered span a wide range, starting from a minimum of 50 lakhs rupees and extending up to 100 crores rupees. Interest rates, also known as Annual Percentage Rates (APR), typically range from 16% per annum to 24% per annum. This rate is dynamic, influenced by the borrower's risk profile, the loan term, and the competitive bidding among institutional investors on the platform. The unique revenue-sharing model means repayments are a fixed percentage of future revenue, which can be advantageous as rates may improve with increased investor competition.
Loan terms are adjustable, usually ranging from 6 to 24 months. Repayment schedules are designed to be highly flexible, scaling daily or monthly with the company's revenue performance. A key benefit is the absence of minimum repayment obligations during periods of low revenue, providing a crucial buffer. Conversely, businesses experiencing strong performance can make accelerated payments, reducing their overall interest burden. The fee structure is transparent: an origination or processing fee of 1.5% to 2.5% of the disbursed amount applies. A late payment fee of a flat 2% is charged on overdue installments, with the platform emphasizing no hidden charges.
Regarding collateral, loans up to 10 crores rupees are typically unsecured. For larger facilities exceeding 10 crores, Recur Club's risk assessment may necessitate a personal guarantee from the promoters or corporate security, depending on the specific risk profile of the borrowing entity.
Application Process, Digital Experience, and Regulatory Status
Recur Club prides itself on a streamlined, fully digital application process, accessible through its intuitive website and dedicated mobile applications for both iOS and Android platforms. The user experience is designed for efficiency and transparency, with a strong average rating of 4.6 on app stores, reflecting positive feedback from over 1,200 users. Key mobile app features include real-time loan limit updates, flexible payment scheduling, and a dashboard to monitor investor bids.
The onboarding process is largely automated, requiring digital submission of essential documents such as PAN (Permanent Account Number), GST (Goods and Services Tax) details, bank statements, and financial records. The platform integrates with popular accounting software like QuickBooks and Xero to facilitate data submission. Identity and business verification are automated, allowing for an average onboarding time of just 48 hours. Borrowers are also supported by dedicated capital experts who assist with documentation and lender negotiations.
At the heart of Recur Club's operations is its AI-driven credit scoring and underwriting system. These sophisticated algorithms analyze a company's financial, operational, and payment history to create a comprehensive risk profile. This profile is then intelligently matched with the risk appetite of institutional lending partners. An external capital partner approval layer ensures robust debt syndication, bringing multiple lenders to the table for competitive terms. Disbursement is swift, typically via direct bank transfer or mobile money options (NEFT/RTGS/IMPS) within 72 hours of loan acceptance. For collections, automated payment deductions are managed via approved mandates, complemented by proactive lender notifications for any potential cash-flow dips, ensuring early engagement to mitigate defaults.
In terms of regulatory compliance, Recur Club is registered as an IT services company in India. Crucially, it partners exclusively with Non-Banking Financial Companies (NBFCs) and banks that are regulated by the Reserve Bank of India (RBI) for its lending activities. This partnership model ensures that all lending operations adhere to the RBI's stringent Digital Lending Guidelines, which came into effect in 2025, promoting fair practices and consumer protection. The company maintains standardized term sheets, avoids hidden charges, and offers a clear grievance redressal mechanism, with an escalation path to the RBI, reinforcing its commitment to ethical operations. Data security is paramount, with compliance to India's IT Act and PCI DSS standards for payment data, ensuring borrower information is protected.
Market Position, Competition, and Practical Advice
Recur Club has rapidly carved out a significant niche, establishing itself as one of India's largest debt marketplaces specifically tailored for startups. To date, it has facilitated over 2,500 crore rupees in funding, demonstrating its substantial impact on the Indian growth ecosystem. Its competitive landscape includes RBI-licensed NBFCs such as Lendingkart and Indifi, alongside other fintech platforms like Kissht and EarlySalary. However, Recur Club differentiates itself through several key aspects:
- True Revenue-Based Financing: Unlike fixed Equated Monthly Installment (EMI) models, Recur Club's repayments truly fluctuate with actual sales, offering unparalleled flexibility.
- AI-Driven Marketplace: Its intelligent platform matches borrowers with multiple institutional lenders, fostering competitive bidding and potentially better terms.
- Non-Dilutive, No-Cap Financing: The ability to secure funding without equity dilution and, in some cases, without an upper financing limit based on ARR, is a powerful differentiator.
The company exhibits a strong growth trajectory, having disbursed 500 crore rupees to D2C brands alone within three years, representing 30% of its total portfolio. It aims to deploy 3,000 crore rupees in the fiscal year 2025-26 across its Recur Scale and Recur Swift offerings. Strategic partnerships with entities like ENRISSION India Capital for social impact startups, and over 150 lending partners including InCred, HSBC, and Tata Capital, further solidify its market position and reach.
Customer feedback generally highlights the speed and flexibility of Recur Club's services, though some complaints occasionally arise regarding delays attributable to external lending partners. The mobile app enjoys high ratings (4.6 on Google Play, 4.7 on App Store), indicating a positive digital experience. Common concerns include limited financing availability for non-subscription businesses and the variable pricing inherent in a marketplace model.
For potential borrowers in India, Recur Club offers dedicated 24x7 customer support via chat, email, and phone, with assigned capital experts for each borrower. Success stories such as Technodysis, an AI startup that secured a 10 crore rupee term loan and achieved threefold revenue growth, and Wellversed, an edtech firm that leveraged 6.5 crore rupees in debt to double revenue and increase EBITDA by 63% in 12 months, underscore the platform's efficacy.
Practical Advice for Potential Borrowers:
- Assess Your Needs: Clearly define your capital requirements and how they align with Recur Club's product offerings (Spark, Swift, Scale, Revenue Advances).
- Understand the Revenue Model: Be comfortable with a repayment structure that directly links to your future revenue. This offers flexibility but also means repayment amounts can vary.
- Prepare Your Financials: Have accurate and organized financial records, bank statements, and GST returns ready. The AI-driven underwriting relies heavily on this data.
- Evaluate Interest Rates and Fees: While competitive, always compare the APR and origination fees against other market options, keeping in mind the value of flexible repayment.
- Leverage Digital Tools: Utilize the mobile app and online portal for seamless application, monitoring, and communication.
- Engage with Capital Experts: Do not hesitate to use the dedicated capital expert support to clarify terms, negotiate, and understand the process.
- Consider Collateral: For loans above 10 crores, be prepared for potential collateral requirements such as personal guarantees.
- Read Terms Carefully: Review the standardized term sheets diligently, paying attention to all clauses, including late payment policies and any conditions from external lending partners.
Recur Club Private Limited presents a compelling and innovative financing solution for India's high-growth businesses. Its blend of technology, flexible products, and regulatory adherence makes it a strong contender for entrepreneurs seeking non-dilutive capital to fuel their expansion.
