Recur Club, a fast-growing debt marketplace for startups and small to medium-sized enterprises (SMEs), has raised $50 million in a combination of equity and debt funding to accelerate its expansion and strengthen its artificial intelligence (AI) capabilities. This latest round underscores the increasing investor confidence in technology-driven lending platforms, especially those addressing the financing needs of early-stage and growth-stage companies.
The funding round comprises $8 million in equity investment led by InfoEdge Ventures, an existing backer of the company. Other participants in the equity component include LC Nueva, Physis Capital, String Ventures, and iA Finvolve. The remaining $42 million comes in the form of debt financing from a range of non-banking financial companies (NBFCs) and debt funds, including Incred, Ugro, and Lighthouse Canton.
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Founded in 2021, Recur Club operates a tech-enabled debt marketplace that connects businesses with over 150 institutional lenders. The platform is designed to offer an alternative to traditional fundraising by enabling companies to raise capital through products like working capital loans, venture debt, asset financing, and invoice discounting. Its standout feature is an AI-driven credit engine, known as AICA, which leverages advanced analytics to match companies with the most suitable lenders and products based on their business profile and financial health.
According to Recur Club, the newly secured capital will be utilized to further enhance its AI credit engine, expand its presence into Tier II and Tier III cities across India, introduce new product lines, and scale up its team to support growing demand. These strategic initiatives are aimed at significantly increasing the platform’s annual debt deployment capacity, with a target debt run-rate of INR 10,000 crore (approximately $1.2 billion) by FY27.
The platform has seen rapid adoption among startups and SMEs seeking faster and more flexible access to debt financing. By automating much of the credit assessment and matchmaking process through AI, Recur Club is positioning itself as a more efficient and scalable alternative to traditional banking systems. The company’s use of technology helps reduce time to disbursement, lowers costs for borrowers, and increases access to credit for underserved regions and sectors.
With the push into non-metro cities, Recur Club aims to tap into the large and often overlooked segment of SMEs that struggle with formal credit access. This expansion aligns with broader fintech trends that are working toward democratizing financial services using data, AI, and platform models.
The participation of leading venture capital firms and institutional debt providers reflects a broader shift in how investors view tech-enabled credit platforms. As startups increasingly seek non-dilutive capital options, debt marketplaces like Recur Club are poised to become a critical part of the startup ecosystem.
In summary, with this $50 million capital infusion, Recur Club is set to deepen its technological edge, broaden its reach, and continue reshaping how startups and SMEs in India access capital—paving the way for a more inclusive and efficient financial ecosystem.
