Revenue Based Financing leader Klub becomes the first to secure a credit fund licence; aims to invest AED 1 billion in the Middle East

Klub, India’s largest platform for Revenue Based Financing (RBF) announced its expansion to the Middle East. Klub has received the relevant permission (Category 3C) to manage private credit funds under the newly instituted credit fund regime by the Financial Services Regulatory Authority (FSRA), Abu Dhabi Global Markets (ADGM). 

This regulatory approval marks a pivotal moment in Klub's journey, granting them the distinction of being the first Revenue Based Financing focused credit fund to expand in the Middle East region. One of the key strategic advancements is the establishment of an AED 1 billion credit umbrella focusing on investing in credit products for the growth of SMEs and startups in the region.

Klub’s pioneering technology platform offers a speedy and fully digital application and assessment process for the provision of flexible credit to digital SMEs and democratises seamless access to a wide range of financing products. This licence will allow Klub to collaborate with regulated banks in the region.

Anurakt Jain, Co-Founder and CEO at Klub, said, “As a company, we have consistently embraced the mission of driving growth for local businesses. Our expansion to the Middle East, starting with the UAE, is the first step in this direction. 60% of the region’s GDP is driven by SMEs which are starved for fast and flexible financing solutions. Klub will bridge this gap.”

Co-Founder and COO Ishita Verma echoed Jain's sentiments, adding, “Since inception, Klub has deployed over AED 400 million to digital businesses in India. We're thrilled to bring our technology and e-commerce financing expertise to a new region in the Middle East, contributing to its entrepreneurial ecosystem."

ADGM, the international financial centre (IFC) of the capital city of the United Arab Emirates is globally recognised for its regulatory environment that fosters financial innovation and collaboration. Klub’s establishment in ADGM amplifies its capacity to facilitate investments and offer financial expertise to emerging businesses across the GCC and beyond.

Arvind Ramamurthy, Chief of Market Development at ADGM said, “We are delighted to welcome Klub to ADGM and confident that ADGM’s dynamic ecosystem and progressive credit fund regime will reinforce Klub’s proven track record as a leading revenue based financing player in India. Their commitment to financial innovation is aligned with ADGM’s vision and we look forward to providing the best platform that supports them in developing their offering and efficiently contributing to the continuous development of Abu Dhabi's vibrant financial landscape and its strategic value to global finance."

Klub's expansion into the Middle East signifies a transformative moment in the landscape of Revenue Based Financing. Klub’s technology suite paves the way for more accessible and innovative AI-enabled financing solutions, and the platform remains dedicated to supporting the growth and success of businesses on an international scale. 

The Klub Group brings deep expertise and established credentials. The Group has deployed more than AED 400+ million in 1600 investment rounds, enabling growth for 600+ digital businesses. In 2022, Klub closed its maiden AED 100 million SEBI-registered credit fund in India, which is now fully deployed. Klub’s technology arm has raised more than AED 80 million in funding from Peak XV’s Surge, Alter Global, Japan-based GMO Venture Partners, and 9Unicorns. 

Read more on Gulf News, Khaleej Times, Economy Middle East, and Zawya.