Revenue-Based Financing Platform GetVantage Raises $5 Mn Seed Funding Led By Chiratae Ventures

Mumbai-based fintech startup GetVantage has raised $5 Mn of seed funding with a mixture of equity and debt-line it can use for funding businesses.

The round saw participation from Chiratae Ventures along with Dream Incubators (Japan) and other marquee NBFCs and debt funds.

With this capital, the company plans to expand into new markets across Southeast Asia, starting with Singapore in the next two years. 

Founded in 2019 by Bhavik Vasa, ex-ItzCash / EbixCash and ex-RadicalPay, GetVantage is a smart alternative funding platform for entrepreneurs to raise growth capital without diluting ownership and for investors to invest more sustainably.

“We created GetVantage with the simple mission to reimagine venture finance for India’s online brands and startups that are clamoring for a smarter, fair, and frictionless funding alternative,” said Bhavik Vasa, founder, GetVantage. “As consumers have shifted online, more companies are looking at how they can take advantage of this digital-shift and the vast economic opportunities that come with it. Akin to Clearbanc and Stripe Capital, GetVantage is designed to help hundreds of small businesses owners with immediate and fair access to the capital they need to harness these new growth opportunities.”

Previously, GetVantage raised an undisclosed amount in a pre-seed round from early-stage investors including Samyakth Capital, Venture Catalysts, Astir Ventures and angels like Jana Balan, Vaibhav Karnavat (Glance Finance), Karun Arya, (Oriente, ex-Uber), Vivek Awasthi (CurrenciesDirect), Soham Avlani (9Unicorns), CA Anuj Golecha and others.

Getvantage works on a revenue-based financing model which allows firms to raise capital by promising a portion of its future ongoing revenues in exchange for money invested. This percentage of revenues will be paid to investors at a pre-established rate until a pre-decided multiple of the original investment has been repaid.

How Does GetVantage Work?

As a revenue-based financing platform, Vasa had explained to Inc42 earlier that the company is measuring potential not just risk. “We believe revenue-based financing can be a gamechanger for the Indian startup and digital enterprise ecosystem. Our model encourages companies to focus on solving problems, generating revenues, growing sustainably and staying true to their mission,” he added.

But what is revenue-based financing?

Revenue-based financing is a way that firms can raise capital by pledging a certain percentage of its future ongoing revenues in exchange for money invested. A portion of revenues will be paid to investors at a pre-established percentage until a pre-decided multiple of the original investment has been repaid.

Leveraging this concept, GetVantage said it offers digital businesses growth capital to fund their digital marketing spends so they can scale their marketing, drive sales, and increase revenues.