Recur Club, an AI-native debt marketplace serving startups and SMEs, has raised $50 million in a mix of $8 million equity (led by InfoEdge Ventures, LC Nueva, Physis Capital, String Ventures, and iA Finvolve) and $42 million in debt from institutions such as Incred, Ugro Capital, and Lighthouse Canton. This marks a major leap for the Delhi-based company, which since its 2021 launch has raised about $10 million in equity funding to date and supports a user base spanning over 2,000 companies.
This development was first reported by The Economic Times.
Past Fundraising Rounds and Growth
- April 2022: Recur Club raised $30 million in its initial debt facility.
- 2023: Launched a $10 million green fund for sustainable businesses.
- 2024–2025: This $50 million round is their largest. They also floated a dedicated ₹150 crore ($18 million) fund for D2C brands and forged strategic partnerships to offer more rapid, flexible funding.
The company has quickly grown to integrate over 150 lenders and is targeting a ₹10,000 crore annual debt run-rate by FY27.
How Recur Club Empowers Startups and MSMEs
Recur Club’s platform is built to make debt financing “as accessible as flowing water” for high-growth startups and India’s vast SME sector. Unlike traditional NBFCs, Recur doesn’t lend directly—instead, it acts as a tech layer and marketplace, matching borrowers with appropriate lenders for working capital, invoice discounting, venture debt, lease financing, and more.
Key features:
- AI-Powered Credit: “AICA” (AI Credit Analyst) automates data collection, document analysis, credit underwriting, and matching—claiming to cut down decision time by over 80%.
- Speed: Unsecured loan approval/disbursal within 48 hours for eligible companies, and structured collateral-backed debt within 2–3 weeks, instead of the usual 2–3 months at banks.
- Diversity: Serves SaaS, D2C, financial services, manufacturing, and has a particular focus on growth-stage ventures with at least ₹5 crore annual revenue or 10% QoQ growth.
- Risk Participation: Sometimes “risk-shares” with lenders to drive up approval and reduce cost of capital for borrowers.
Through 2025, Recur Club’s platform had already facilitated ₹3,000 crore in debt transactions, supporting founders through liquidity, scaling capital, cash-flow funding, and even green business empowerment.
Recent Funding and Innovation in SME Debt Marketplaces
India’s alternative SME lending space has seen a flurry of activity in 2025:
- CredAvenue (Yubi): Raised $137M (2024) and targets rapid tech-driven scale in the debt market.
- Vivriti Capital: Raised $45M in June 2025 to further its digital marketplace and expand to Tier 2–3 towns.
- GetVantage, Klub, Indifi, Velocity: Competitors building tailored platforms for MSME working capital, revenue-based financing, and “autopilot” credit solutions.
Government and policy moves—including expanded credit guarantee schemes and new digital credit assessment models—complement these efforts, streamlining finance for startups and providing new tools to lenders and aggregators.
Read this: Hocco Secures $13 Million In Latest Fundraise, Valuation Hits Rs 2,000 Cr
Future Outlook
Recur Club’s ambition is to power 2% of India’s $1 trillion SME/startup debt market by 2030. Its focus on instant, founder-friendly, and AI-enabled lending has helped tackle the legacy friction of relationship-based corporate credit, democratizing funding access for new-economy entrepreneurs across India.
