Klub extends INR 10 crore working capital to D2C brands ahead of the summer sales surge
BANGALORE, INDIA, March 28, 2022 — Klub, India’s leading Revenue Based Financing platform, announced today that it has invested INR 10 crores in D2C brands to extend working capital in anticipation of the summer season sale across quick commerce websites. This includes investments in companies such as Papacream, NOTO Ice cream, Artinci, and Local Ferment Co.
With major players in quick commerce marketplaces going live with their summer season sales in the upcoming quarter including Swiggy Instamart, Zepto, and Dunzo, D2C brands selling summer specific products such as cold beverages and ice creams require working capital to secure inventory and also use it for improving their performance marketing to garner more revenue during these sales.
Sales of cold beverages have been soaring for the past one month with the early onset of summer. Soft drink and juice makers have reported a 30-35% year-on-year jump in sales in February, as reported by Financial Express.
Ashni Shah, Co-founder and Director at NOTO Healthy Ice Cream said, “As we gear up for the summer season, we are focusing on leveraging our working capital to ensure we are well-prepared to meet the surge in demand. This includes launching new product lines, ensuring there’s enough inventory to keep up with the demand and expanding our delivery capabilities to be able to service existing plus new customers. We will also be running aggressive marketing campaigns both online and offline to ensure constant visibility. By strategically raising our working capital through Klub’s platform and allocating it ahead of these sales, we are confident in our ability to drive growth and continue to give our customers the perfect NOTO experience.”
RedSeer’s report also states that Q-commerce is currently capable of catering to 20 million Indian households, comprising barely 7 percent of the overall market, indicating its untapped potential. The sustained growth of online consumables across the country will give a fillip to the instant market’s expansion. Almost 50% of the growth is anticipated to arise from the metros and Tier I regions.
Ishita Verma, co-founder and Chief Operating Officer at Klub, said, “At Klub, we understand the importance of working capital for digital businesses, especially during the peak sales season. We hope to bring digital, seamless, and affordable finance across India. In the coming months, we will be focussed on very aggressive growth and aim to triple the disbursement before the festive season sales begin.”
Klub provides digital businesses with fast and flexible capital up to INR 30 crores without having to dilute equity. Since its inception, Klub has funded 450+ brands in 900+ investment rounds.
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