Recur Club Allots $15 Million to Compensate Employees for Impacted Indian Companies
To pay for payroll and other essential short-term obligations without diluting ownership for all Indian startup founders impacted by the collapse of Silicon Valley Bank (SVB), fintech platform Recur Club announced that it had granted $15 million in financing within 48 hours.
Recur Club will not impose any platform fees to further strengthen and support the ecosystem.
Although the precise number of Indian startups with SVB accounts is unknown, more than 50 percent of Indian SaaS companies are expected to have a US presence, and the bulk of these companies banked with SVB.
The SVB debacle is likely to have had a direct impact on more than 1,000 Indian businesses, and it is realistic to predict that many more will have indirect effects.
The affected businesses are in various stages of growth, from startup to late-stage.
Recur Club has received interest from more than 100 startups regarding immediate Payroll financing and managing short-term expenses,” says Eklavya Gupta co-Founder, Recur Club.
Currently, Recur Club works with businesses who have a stable annual revenue from repeat business of at least $100,000, more than one year of vintage, and more than three months of runway.
Abhinav Sherwal and Eklavya Gupta, both graduates of IIM Calcutta, founded it in 2021, and it has since invested in more than 300 businesses.
“This incident tells us about the criticality of diversification, be it customers, banking, or investors in a business. Recur Club has received interest from more than 100 startups regarding immediate Payroll financing and managing short-term expenses,” says Eklavya Gupta co-Founder, Recur Club.
“In addition, Recur Club is also facilitating opening bank accounts in GIFT city within 24-48 hours by taking special exemptions for enabling the startup community to flourish,” it added.