Revenue-Based Financing in India: Top Lenders, Terms, Eligibility, Benefits & Drawbacks :
Revenue-Based Financing in India: Top Lenders, Terms, Eligibility, Benefits & Drawbacks :
What is Revenue-Based Financing (RBF)?
Revenue-Based Financing (RBF) is an innovative funding model that allows startups to raise capital without giving up equity or pledging collateral. Instead of fixed monthly EMIs, the business repays investors through a pre-agreed percentage of monthly revenue until a set repayment cap (for example, 1.3x to 1.5x the initial amount) is reached.
This structure means payments flex with business performance — higher revenue means faster repayment, slower months mean lower outflow — aligning with a startup’s cash flow.
RBF has become a preferred alternative to venture capital (VC) or bank loans for growing Indian startups, especially D2C, SaaS, and eCommerce companies.
Why Revenue-Based Financing is Growing in India
India’s booming D2C and SaaS ecosystem, combined with the rise of fintech lenders, has created fertile ground for RBF. Founders increasingly prefer non-dilutive funding to retain ownership while accessing working capital for marketing, inventory, or expansion.
RBF also fills the gap for businesses that are too early for VC but too asset-light for traditional banks.
Top Revenue-Based Financing Lenders in India (2025)
Here are some of the most trusted and active RBF platforms serving Indian startups:
- GetVantage
One of India’s pioneering RBF platforms.
Funds D2C brands, eCommerce sellers, SaaS startups, and digital-first ventures.
Typical funding: ₹10 lakh – ₹5 crore.
Quick underwriting using payment gateway and marketplace data.
NBFC license for regulated lending operations.
- Klub
Offers RBF to digital businesses with predictable revenues.
Ticket sizes: ₹5 lakh – ₹30 crore (depending on traction).
Transparent dashboard for application and tracking repayments.
Backed by major VCs and used by 400+ Indian brands.
- Velocity
Focused on D2C and online-first startups.
Data-based underwriting through integrations with Shopify, Razorpay, Google, and Meta.
Funding range: ₹5 lakh – ₹3 crore.
Offers flexible repayment based on monthly sales performance.
- Recur Club
Ideal for SaaS and subscription businesses.
Converts annual recurring revenue (ARR) into upfront capital.
Allows founders to trade future revenue streams for immediate liquidity.
- Choco Up (Pan-Asia)
A Hong Kong-based RBF platform with operations in India and APAC.
Suitable for cross-border eCommerce or multi-market startups.
Typical RBF Terms & Conditions in India (2025)
Parameter Typical Range / Details
Funding Size ₹5 lakh – ₹5 crore (average ₹25–50 lakh for early-stage)
Revenue Share 5% – 20% of gross monthly revenue
Repayment Cap 1.15× – 1.5× the principal
Tenure 6 – 24 months (variable depending on revenue growth)
Processing Fees 1% – 3% upfront
Disbursal Time As fast as 3–10 days after data verification
Collateral None (data-driven underwriting)
Tip: Always calculate the effective cost or internal rate of return (IRR) to compare RBF offers with loans or venture debt.
Eligibility Criteria for RBF in India
Each lender has specific thresholds, but generally, your startup should meet:
Minimum 6–12 months of consistent revenue.
Average monthly revenue of ₹5–10 lakh or higher.
Digital sales data from Shopify, Razorpay, Amazon, or payment gateways.
Positive unit economics — customer acquisition cost (CAC) and gross margins matter.
Bank statements, GST returns, and financial hygiene for verification.
Key Benefits of Revenue-Based Financing
- Non-dilutive capital — retain 100% ownership and control.
- Flexible repayments — no EMIs; payments linked to revenue.
- Fast access to funds — approvals within days.
- No collateral required; underwriting based on data.
- Best for ROI-positive growth spends like ads, inventory, or expansion.
Risks & Drawbacks to Consider:
While RBF can be founder-friendly, it’s not risk-free. Watch out for:
Higher effective cost than traditional loans (due to repayment caps).
Reduced cash margins during slow months (since repayments continue as a % of revenue).
Data sharing obligations — lenders may require API access to your sales platforms.
Shorter repayment cycles if revenue spikes quickly (leading to faster payback, not always ideal).
Example RBF Deal Breakdown (Illustrative)
Details Example
Principal Amount ₹50,00,000
Revenue Share 10% of gross monthly revenue
Repayment Cap 1.3× (₹65,00,000 total repayment)
Monthly Revenue ₹25,00,000
Estimated Tenure ~26 months (variable)
If monthly revenue rises to ₹40 lakh, repayment completes sooner. If it dips, tenure extends — showing how RBF adjusts dynamically to performance.
How to Choose the Right RBF Partner:
- Compare repayment caps and fees — even 0.1x can change your effective cost.
- Check integration support — choose lenders who integrate with your sales and payment tools.
- Ask for IRR-based cost disclosure instead of just “fee multiples.”
- Understand covenants — ensure data access is read-only and termination clauses are fair.
- Read reviews — evaluate support, transparency, and post-disbursal engagement.
Is RBF Right for Your Startup?
RBF is ideal if:
You have predictable sales or recurring revenue.
You want to fund marketing or inventory without giving up equity.
You can project revenue growth within 6–18 months.
However, if your revenue is volatile or you already have low margins, RBF repayments could strain cash flow.
Bottom Line: Revenue-Based Financing in India offers a flexible, founder-friendly alternative to venture debt and equity dilution. For fast-growing startups with consistent revenue, it’s one of the smartest ways to fund growth without giving up control.
Please connect on Whatsapp on 98200-88394 or email to intellex@intellexconsulting.com if you need any assistance in raising Revenue Based Finance
Team- Intellex Strategic Consulting Private Limited
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