Recur Club provides $15 million in funding to Indian start-up founders impacted by the SVB crisis

Recur Club, a recurring revenue-based financing company, has provided $15 million in funding to Indian start-up founders impacted by the Silicon Valley Bank crisis.

The company will not charge any platform fees for this, it said.

While the exact number of Indian startups with SVB accounts is unknown, it is estimated that more than 50 percent of India’s SaaS companies have a US presence, most of which banked with SVB.

It can be assumed that over 1,000 Indian start-ups have been directly affected by the SVB fiasco, with many more likely to be indirectly affected. The companies affected range from early to late-stage growth, the company said.

According to Recur Club co-founder Eklavya Gupta, the incident underscores the importance of diversification, be it with clients, banks or investors. More than 100 startups have turned to him for instant payroll and short-term expense management.

Many of the companies had the SVB as their only bank account or had parked much of their liquidity there. Caught in the crisis, they are now forced to find a banking partner and liquidity to keep operations running.

Fintechs like Recur Club provide startups with instant, non-dilutive financing solutions to fund their payroll and short-term working capital needs within 48 hours of receiving company data and without diluting equity.

In addition, it also facilitates the opening of bank accounts in GIFT City within 24-48 hours by granting special exemptions, it said.

It currently works with companies that have at least $100,000 in projected annual sales from existing clients with vintages older than one year and more than three months of runway. Recur Club has funded more than 300 businesses, the company said.