As the Indian startup ecosystem matures and capital competes for allocation, the available funding models are also diversifying and becoming more founder-friendly.
Revenue Based Funding (RBF) is the latest entrant. RBF firms analyze ledgers to mine transaction-level data to underwrite funding which can then be repaid with a percentage of revenue.
It's currently a $5-8 billion opportunity, but with 10,000 small businesses created each year in India, the market is set to grow to $40-50 billion over the next few years. In this context, RBF has the potential to serve high-velocity businesses by democratizing access to credit on favorable terms.
With advantages like AI-powered underwriting, no collateral, zero equity dilution, and favorable cashflow-linked repayment schedules, how can we help businesses become more aware of RBF?
Is it just about retaining the ownership of a business and capped returns to investors or more?
What are the promises and possibilities of RBFs in the post-pandemic era?
Over a series of flash talks, founders of leading RBFs will draw on their experience of enabling businesses to scale 10X and share their insights on this finance model and its growth prospects.