Non-Dilutive Funding Fuels Indian SaaS Boom

Editorial Desk · 2024-01-24T11:56:07+05:30

As equity funding tightens, Indian SaaS startups see a surge in demand for alternative financing solutions. Revenue-based financiers such as GetVantage and Velocity are stepping up, earmarking sizeable funds (Rs 250 crore and Rs 300 crore, respectively) to fulfill this emerging requirement. This funding model offers a lifeline to bootstrapped startups, particularly attractive for those with a proven product-market fit and in need of capital for expansion without equity dilution.Revenue-based financing (RBF) is appealing due to its non-dilutive, non-collateral nature, where a company repays borrowed funds through a fixed percentage of its revenue. This framework is highly conducive for SaaS providers, known for their predictable, recurring revenue models. While traditional equity markets recalibrate, RBF stands out for filling the capital void, previously dominated by e-commerce and D2C brands.GetVantage and Velocity signal a strategic pivot within startup financing ecosystems, providing debt facilities aimed at approximately 100 companies. With the backing of high-profile investors like Peter Thiel’s Valar Ventures, these revenue-based financiers propose leveraging equity for riskier ventures while utilizing debt capital for predictable, steady growth, reflecting a broader market trend towards more sustainable investment practices.

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Non-Dilutive Funding Fuels Indian SaaS Boom
Posted by Editorial Desk on January 24, 2024 at 11:56 am
As equity funding tightens, Indian SaaS startups see a surge in demand for alternative financing solutions. Revenue-based financiers such as GetVantage and Velocity are stepping up, earmarking sizeable funds (Rs 250 crore and Rs 300 crore, respectively) to fulfill this emerging requirement. This funding model offers a lifeline to bootstrapped startups, particularly attractive for those with a proven product-market fit and in need of capital for expansion without equity dilution.
Revenue-based financing (RBF) is appealing due to its non-dilutive, non-collateral nature, where a company repays borrowed funds through a fixed percentage of its revenue. This framework is highly conducive for SaaS providers, known for their predictable, recurring revenue models. While traditional equity markets recalibrate, RBF stands out for filling the capital void, previously dominated by e-commerce and D2C brands.
GetVantage and Velocity signal a strategic pivot within startup financing ecosystems, providing debt facilities aimed at approximately 100 companies. With the backing of high-profile investors like Peter Thiel’s Valar Ventures, these revenue-based financiers propose leveraging equity for riskier ventures while utilizing debt capital for predictable, steady growth, reflecting a broader market trend towards more sustainable investment practices.
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