Ultimate Guide to Revenue-Based Financing in India: Flexible & Non-Dilutive Capital Solutions for Startups

In India, Revenue-Based Financing (RBF) is emerging as a game-changing, non-dilutive funding solution for startups. With 1.59 lakh recognized startups as of January 2025, India now ranks as the world’s 3rd largest startup ecosystem, fueling the demand for alternative financing models.

Even industry leaders acknowledge this shift. Aman Gupta, co-founder of boAt, recently discussed revenue-based financing on Shark Tank India. He highlighted that, instead of diluting equity, brands today can easily access revenue-based financing.

A prime example is InCruiter, a Bengaluru-based HR-tech startup that secured ₹1 crore through Recur Club. The startup, which offers Interview-as-a-Service solutions, used the RBF capital to expand its operations into international markets, including the US, Canada, and Dubai, and to hire additional talent for tech and sales.

In this guide, we’ll explore how RBF works, its key benefits, and the simple process of applying for this financing solution.

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What is Revenue-Based Financing?

Revenue-Based Financing (RBF) is an alternative financing model that allows businesses to access startup capital without sacrificing equity, making it a compelling non-dilutive funding solution. Instead of receiving a lump sum and paying fixed monthly installments like traditional loans, businesses repay investors with a portion of their gross income.

The repayment continues until the business has repaid a predetermined multiple of the initial investment, typically ranging from three to five times the original amount. This model makes RBF a flexible solution for companies, especially those with fluctuating revenues, as it ties the repayment structure directly to their financial performance.

Click Here to Apply for Revenue-Based Financing

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How Does Revenue-Based Financing Work?

In RBF, businesses secure funding from investors in exchange for a share of their revenue. Repayments continue until a predetermined multiple of the original investment is met. Unlike traditional loans, which often have rigid terms, RBF offers a flexible funding option where repayments align with business revenue—decreasing during slower periods and increasing when business picks up.

This flexible approach helps businesses maintain healthy cash flow while scaling without the pressure of rigid repayment schedules.

Also Read: Understanding Key Concepts in Recurring Revenue Financing

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Benefits of Revenue-Based Financing

As an alternative financing method, Revenue-Based Financing offers several advantages for businesses looking for startup capital without giving up equity. Here are some of the benefits:

1. Faster Loan Disbursal in 48 hours: Unlike traditional bank loans, which can take months, RBF allows businesses to secure funding in no time, ensuring quick access to capital.
2. No Collateral: RBF is collateral-free financing and does not require personal guarantees, making the process less risky and faster.
3. Non-Dilutive: With RBF, businesses can secure funding without giving up equity or control. This is particularly valuable for rapidly growing companies and startups.
4. Flexible Repayment: Payments are based on business performance, meaning businesses pay more when sales are higher and less during leaner months.

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How to Apply for Revenue-Based Financing

If you're looking for a streamlined way to access revenue-based financing, Recur Club offers a straightforward process tailored to your needs.  

1. Create Your Account
   Start by signing up on the Recur Club platform. A dedicated capital expert will be assigned to guide you through the entire process and offer personalized advice.
2. Submit Financial Information
   Fill out a quick application with essential financial details, including your GST filings and compliance data. Simply integrate your current financial software with our secure platform for quicker approval.
3. Fast Approval & Quick Access to Funds
   Once your application is reviewed, Check and compare different loan structures and select the one that suits your business needs.

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Conclusion

Revenue-based financing is a powerful tool for businesses looking to scale without sacrificing equity or enduring rigid repayment schedules. Recur Club provides a non-dilutive funding solution, offering up to 30% of a business's annual recurring revenue (ARR) as upfront capital, targeting SaaS, D2C and subscription-based companies with predictable incomes. 

If you're ready to take the next step and secure the financing you need, Recur Club provides a simple, streamlined process that helps you get the capital to support your business’s success.

Talk to an expert today!