Revenue Based Financing Startup GetVantage Bags $36 Mn Funding To Scale Tech, Expand To New Territories

Mumbai-based revenue-based financing startup GetVantage has raised $36 Mn as part of a strategic funding round led by Varanium Nexgen Fintech Fund and DMI Sparkle Fund

The round also saw participation from existing investors such as Chiratae Ventures and Dream Incubator Japan, as well as new investors such as Sony Innovation Fund, InCred Capital, Haldiram’s family office, among others. 

As part of the deal, Varanium Capital’s partner Aparajit Bhandarkar will join GetVantage’s board of directors.

The startup will use the funding to scale up its product line as well as its ‘performance-based financing solution.’ The investment will also be used to ramp up its tech infrastructure and to expand its footprint across Southeast Asia. 

GetVantage, founded in 2020 by Amit Srivastava and Bhavik Vasa, is a revenue-based financing platform that enables startups to raise capital by pledging a certain percentage of their future revenues in exchange for money invested. It also provides digital startups under its umbrella with a host of solutions for marketing, sales, logistics, payment gateways, among others.

“We’re seeing thousands of new businesses and home-grown brands eager to scale up and we are excited to work with incredible investors and funding partners like DMI Finance and InCred to provide founder-friendly capital to supercharge growth for over 1,000+ businesses in the next year,” GetVantage chief executive officer and founder Vasa said.

The startup had last raised $5 Mn as part of its seed funding round. With this round, it has raised close to $41 Mn since its inception.

GetVantage claims to offer equity-free capital between INR 5 Lakh and INR 5 Cr in five days. It claims to have witnessed 300% year-on-year (YoY) growth in 2021, with more than 4,000 businesses applying for funding via its platform. 

GetVantage claims to have processed more than INR 2,200 Cr in gross merchandise volume (GMV) for over 350 brands since its inception. It has catered to businesses from a slew of segments, including direct-to-customer (D2C), ecommerce, edtech, healthtech, among others.

The startup is targeting scaling its embedded finance solution by 30X in partnership with other ecommerce platforms. It aims to offer funding options for merchants selling on various online marketplaces. 

GetVantage’s portfolio includes new-age tech companies such as Arata, BoldCare, Eat Better, Jade Forest, Naagin, Nua Wellness, Rage Coffee, among others.

India presents a burgeoning opportunity for RBF startups. In the country, 50.7 Mn businesses lack access to credit, with credit gap widening to $380 Bn in the last five years, according to some estimates.  The open market and scale achieved by RBF startups point to  a happy story for the world of D2C startups.

According to a report by Allied Market Research, the global revenue-based financing market was pegged at $901.4 Mn in 2019, and is projected to hit $42.3 Bn by 2027, growing at a CAGR of 61.8%.

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