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Recur Club, an AI-native debt platform for startups and SMEs, announced a Rs. 500 crore fund. The partnership aims to provide growth capital to direct-to-consumer (D2C) brands during the current financial year. The fund comes as brands prepare for a seasonal surge in consumer demand.
The fund is expected to support around 150-170 D2C brands, based on an average financing ticket of about Rs. 3 crore. The final number will depend on the individual capital requirements of participating companies.
Recur Club said, “ The initiative targets two major funding requirements for D2C businesses: inventory financing and store or capacity expansion. More than 5,000 D2C companies show that demand for growth capital typically increases by around 35% during the festive quarter.”
Higher demand can create a working capital gap as companies need to purchase stock before they receive revenue from festive sales. This structure allows brands to finance inventory without adding traditional debt to their balance sheets.
The funding push comes as quick commerce becomes a larger sales channel for D2C brands. Companies increasingly need to maintain inventory across multiple channels and fulfilment locations.
Eklavya Gupta, co-founder of Recur Club, said, “ Packaging costs have risen by around 21% amid geopolitical tensions in the Gulf region. At the same time, quick commerce is taking a larger share of D2C sales, forcing brands to stock products across more channels and earlier in the sales cycle.”
Recur Club said it facilitated approximately Rs. 275 crore for more than 100 D2C brands in the current financial year. Its cumulative capital facilitated for the D2C sector has reached around Rs. 1,200 crore. The latest fund signals growing demand for alternative and non-dilutive financing among consumer brands.
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