Recur Club, an AI-native Indian debt platform for startups and SMEs, has announced a Rs 500 crore fund to provide growth capital for D2C brands this financial year.
Based on its current average ticket size of around Rs 3 crore, the fund could support about 150-170 D2C brands, depending on their financing requirements.
The announcement comes ahead of the Indian festive season, when D2C brands typically need additional capital to build inventory and prepare for higher consumer demand.
The fund will finance inventory purchases and store or capacity expansion.
Established in 2021, Recur Club said it has worked with more than 500 D2C brands.
The financing will cover inventory purchases as well as equipment and fit-outs for new stores, with brands repaying through instalments or monthly payments.
“The festive season can make or break a D2C brand’s year, and this year the pressure is higher. Packaging costs have risen by around 21% amid geopolitical tensions in the Gulf region,” said Eklavya Gupta, Co-founder at Recur Club.
“At the same time, quick commerce is taking a larger share of D2C sales, so brands need to stock more inventory, across more channels, earlier than ever,” he added.
Recur Club said it has facilitated approximately Rs 275 crore for over 100 D2C brands in the current financial year, taking its cumulative capital facilitated for the sector to Rs 1,200 crore.
