AI-Native Debt Startup Recur Club Announces Rs 500 Cr Fund For D2C Brands

Recur Club, a debt platform that works with startups and small businesses, has announced a Rs 500 crore fund for D2C brands. The money is meant to fund growth capital for consumer brands during the current financial year.

At the current average ticket size of about Rs 3 crore, the fund should reach between 150 and 170 D2C brands. The final count will depend on how much each one needs.

Why the timing matters

The announcement comes just before the festive quarter, the period when D2C brands spend the most on inventory and new stores to catch peak demand. Recur Club says demand for growth capital from this segment typically rises around 35 per cent during that quarter. That estimate is based on its data from more than 5,000 D2C companies on its platform.

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Eklavya Gupta, co-founder of Recur Club, said the festive season can make or break a D2C brand’s year. The pressure is higher this time, he said. Packaging costs have gone up about 21 per cent, he said, while quick commerce is taking a larger share of D2C sales. That combination forces brands to hold more stock across more channels, and to do it earlier than before.

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Two problems the fund is built around

Recur Club says the structure came out of its work with over 500 D2C brands. Those brands kept running into the same two funding problems.

The first is inventory. Under its inventory financing product, Recur Club procures stock on the brand’s behalf. The brand sells it through its existing channels and repays the financing in instalments. The key detail is that this does not add debt to the brand’s balance sheet.

The second is expansion. For new stores and capacity, Recur Club helps acquire equipment and fit-outs. The brand pays a monthly rental until the financing is repaid. In effect, capital expenditure is converted into an operating cost, which is easier for a fast-growing consumer business to absorb.

What Recur Club has already deployed

The company says it has facilitated about Rs 275 crore for more than 100 D2C brands in the current financial year. Its cumulative capital facilitated for the D2C sector now stands at around Rs 1,200 crore.

Recur Club was founded by Eklavya Gupta and Abhinav Sherwal. It works as an AI-native debt platform, connecting companies with non-dilutive capital rather than equity. That keeps founders’ stakes intact while they fund working capital needs.