Recur Club Launches Rs 150 Crore Fund to Boost D2C Brands on Quick Commerce Apps

Recur Club, a debt marketplace for start-ups and SMEs, has announced the launch of a Rs 150 crore fund for D2C (direct-to-customers) brands in the quick commerce sector. The initiative, announced on National Start-up Day, aims to provide growth and working capital for these brands to acquire additional inventory or boost marketing efforts.

This new fund aligns with Recur Club’s vision to fuel the growth of ‘Make-in-India’ start-ups, particularly in the quick commerce segment of the D2C market. The fund targets loan disbursal within seven days.

“Recently, we have seen a tripling in demand for debt financing, largely due to the burgeoning quick commerce sector outstripping traditional ecommerce. With more than half of the 300 consumer brands we have financed utilising quick commerce platforms, it’s clear that these businesses are primarily investing in scaling inventory to keep pace with consumer demand and employing strategic marketing efforts,” said Recur Club CEO and founder Eklavya Gupta.

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He noted that India’s quick commerce market, dominated by Blinkit, Swiggy Instamart and Zepto, is expected to expand at a CAGR of over 25% by 2030, propelled by evolving consumer preferences towards speed and convenience. And the D2C sector, which is anticipated to reach beyond $60 billion by 2027, is poised to drive this growth.

Recur Club has disbursed over Rs 500 crores to D2C businesses, comprising 30% of its overall portfolio and spanning companies with revenues ranging from Rs 1 crore to Rs 300 crores. Some brands that have benefited from Recur Club’s funding include Ustraa and Wellversed. The debt marketplace is backed by marquee institutional investors like InfoEdge Ventures, Village Global, LC Nueva, and Titan Capital.

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The 10-minute delivery took centre stage in the India market, with the q-commerce giants Blinkit, Swiggy Instamart, and Zepto introducing new product categories to serve evolving consumer demands. From groceries and electronic gadgets to beauty products and festive gift hampers, these platforms expanded their offerings to cater to a broader range of consumers who prefer convenience.

While the combined revenue of the quick commerce trio surpassed $1 billion, the industry witnessed an impressive 280 per cent growth over the past two years. Some players are delivery products in 15-20 minutes, while others have won the race by fulfilling orders in 8-10 minutes. This mimics the change in the purchase behaviour of Indian consumers.