DI-backed GetVantage raises $36 million round
Revenue-based financing (RBF) platform GetVantage announces a $36 million strategic growth round (a mix of equity and debt). Dream Incubator welcomes onboard new partners on this rocketship – Varannium Capital, DMI AIF – The Sparkle Fund, Sony Innovation Fund, InCred Capital and Haldiram’s Family Office. DI, along with GetVantage’s existing investor Chiratae Ventures also participated in this round. With this, GetVantage has raised $40 million till date, including debt lines with NBFC Partners.
This fundraiser will be utilised to strengthen its product portfolio, hire talent and foray into Southeast Asia.
Founded in 2019 by Bhavik and Amit Srivastava, GetVantage claims to have funded over $270 million in Gross Merchandise Value (GMV) for over 350 brands across 18 categories, including B2B SaaS and subscription, Direct-to-Commerce, e-commerce, edtech, health tech, cloud kitchens, and nutrition. Its portfolio brands include Arata, Rage Coffee, Naagin, BoldCare, SidFarms, Zymrat, and others.
GetVantage gives SMEs equity-free capital between $10,000 to $500,000, with applications processed in about two days, and funds made available in five. Financing decisions are made using the company’s algorithms, which it says helps get rid of bias and makes the application process faster. Its core tech is a proprietary machine-based learning model called the Credit Decision Engine and cloud-based Deal Management System.
DI had earlier participated in the company’s seed round in 2019. Witnessing 7x growth in no. of deals, 10x revenue growth, strong unit economics, and robust market macros coupled with a highly capital efficient approach by the deeply experienced team, DI has doubled down its investment in this Series A round. DI association with GetVantage is not limited to being a financial investor but also to assist the company with potential new business partner introductions and South-East Asia market entry.
The market opportunity for revenue-based financing is now $5 billion to $8 billion and is expected to grow to $40 billion to $50 billion as the direct-to-consumer market expands to $100 billion by 2025. To service such aggressive growth, these D2C brands desperately need growth capital and using the RBF model helps them raise the same without diluting their equity, high-interest rates, heavy collaterals or giving away its board seat.
The other players in the revenue-based financing segment include Klub (raised Rs. 200 crore RBF fund & $12M in equity so far), Velocity (raised $30M in total), N+1 Capital (in discussions to raise funds).
About Dream Incubator
Dream Incubator (DI) is a Japanese consulting practice and VC fund headquartered in Tokyo. Globally, an experienced VC fund with 200+ investments across Japan, US, India, South East Asia, China, of which 30+ companies have gone for IPO. DI started investing in India in 2015 and has a portfolio of 30 companies across fintech, consumer internet, healthtech, insurtech, gaming, media & entertainment sectors. Some of the portfolio companies include Pharmeasy, Purplle, Turtlemint, Moneyview, Koo, Healthifyme, Medfin, Onco, Niramai, etc. To know more about DI, its investment thesis and portfolio companies, please click here.