SUMMARY
The allocated fund will offer scalable debt financing of up to INR 30 Cr in a single tranche through Klub’s platform
The partnership is aimed at addressing the credit requirement gap that exists for SMEs
Klub’s partnership with U GRO amplifies its reach and also aligns with the value it delivers to SMEs through its product selection and customer experience
Revenue-based financing startup Klub has partnered U GRO Capital, a data tech lending platform, to disburse INR 150 Cr credit to support digital small and medium enterprises (SMEs) across different growth stages in the country.
The companies said in a joint statement that the allocated fund will facilitate lending activities across India, offering scalable debt financing of up to INR 30 Cr in a single tranche through Klub’s platform.
Founded in 2020 by Anurakt Jain and Ishita Verma, Klub offers flexible funding of up to INR 30 Cr to digital businesses and SaaS startups. It has a presence in India and the UAE, and provides growth capital to SMEs in partnership with NBFCs, HNIs, and financial institutions, and via its own SEBI-registered fund.
Its investment platform combines financial product innovation, deep data-driven analytics, high-frequency collections, and community engagement, providing tailored funding solutions to SMEs and startups. Klub claims to have deployed over 1,600 investment rounds enabling growth for more than 600 brands across India to date.
The startup raised $20 Mn in seed funding from Peak XV’s Surge, US-based Alter Global, Japan-based GMO VenturePartners, and 9Unicorns in 2021.
“Given the pivotal role MSMEs play in India’s economy and job market, addressing their credit requirement gap is a critical opportunity,” said Sudharsan Venkatkrishnan, senior VP at Klub, emphasising the importance of addressing the current credit gap in India.
“Partnering with a digitally savvy lender like U GRO Capital not only amplifies our reach but also aligns with the value we deliver to SMEs through our product selection and superior customer experience,” Venkatkrishnan added.
U GRO Capital’s loans, ranging from INR 1 Lakh to INR 5 Cr, support an array of requirements including business expansion, working capital, equipment upgrades, and sustainable initiatives such as rooftop solar installation and EV financing. Its assets under management (AUM) stood at INR 8,364 Cr as of December 2023.
The companies said that though the MSME sector plays a crucial role in India’s economic landscape, access to credit remains a significant challenge for these companies, which hinders their growth potential. The partnership between Klub and U GRO is expected to address this gap.
As per a 2023 research report, digitised SMEs had a potential immediate credit demand of about $220 Bn.
