STARTUPS, ESPECIALLY IN e-commerce and B2B software-as-a-service (SaaS), leaned heavily on revenue-based financing (RBF) in 2024 as equity markets remained muted. The trend marked a shift in how businesses sought capital for growth, inventory management, and market expansion.
RBF platforms such as Velocity and GetVantage experienced a surge in activity, with Velocity reporting a 50% increase in disbursements and GetVantage doubling its investments. These platforms, which offer non-collateralised loans repaid as a percentage of a company's gross revenue, have emerged as critical funding sources for startups navigating tough funding environments.
"A lot of brands are looking for capital to grow in quick commerce and manage inventory effectively," said Atul Khichariya, co-founder and COO of Velocity. "We've also observed rising demand from cloud kitchen startups over the past few months," he added.
This story is from the January 06, 2025 edition of Financial Express Mumbai.
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This story is from the January 06, 2025 edition of Financial Express Mumbai.
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