Frequenty Asked Questions
Revenue-based financing enables a company to share a percentage of future revenue with an investor in exchange for capital. Revenue linked payments, unlike fixed EMIs, are flexible and vary with the brand's revenue: going up for great-revenue periods and moderating for low-revenue periods.
It is an alternative investment model versus more conventional equity-based investments, such as venture capital and angel investing, as well as traditional debt financing.
| Klub RBF | Venture Capital & Private Equity | NBFC & Bank Debt | Venture Debt | |
|---|---|---|---|---|
Target Companies | All consumer brands | <1% (Innovative IP or exponential growth) | Large scale, assets or profits | <1% (Only VC & PE funded) |
Cost | Medium | High | Medium to Low | Medium |
Returns | Revenue based payments | Exit or liquidity event (M&A, IPO) | Fixed EMI | Fixed EMI and equity upside |
Dilution | None | High dilution, esp. at early stage | No dilution | Low dilution |
Control | No loss of control | Significant loss of control | No loss of control | VC/PE rounds lead to loss of control |
Time | 10-15 working days | 3-6 months | 5 days for new age fintech to months for banks | 3-6 weeks |
Flexible, skin-in-the-game financing: With Klub, you pay more in good times, less in slow phases
Transparent pricing: With Klub, you have complete clarity on total amount to be repaid. No hidden charges.
Better repayment structures: With Klub, payments grow as your revenues grow, giving you more breathing space in early months
No equity dilution: With Klub, there is no equity dilution, and you retain complete control on how your business is run
Seamless process: Managed by our in-house experts to give you a transparent financing experience
Community and revenue opportunities: Klub’s patron network is a community of affluent investors who contribute to your revenue & brand building
You're generating revenues Monthly revenues greater than Rs 10 Lakhs | You're growing Promising month on month revenue growth | You have good margins Businesses with gross margins higher than 50%, or EBITDA margins greater than 30%, are a good fit |
You have user love Do your users want to support you by providing financing? | Your brand can do wonders with an engaged patron community A patron investor network can not only turbocharge financing, but also revenue growth and brand virality for the right brands. | You have predictable unit economics The easier it is for us to assess how our investment will help you grow your revenues, the faster we fund! |
Klub offers three products to brands
Klub Blaze
Get funding of: ₹5 Lakhs - ₹1 Crore
- 3 to 9 months tenure
- Flexible repayments as a percentage of revenues
- Offered in partnership with NBFCs
- No hidden charges, repay 1.05x - 1.12x of funding amount, all-inclusive
Klub Gro
Get funding of: ₹25 Lakhs - ₹5 Crore
- 12 to 18 months tenure
- 1-10% revenue share
- Funded by Klub's patron investor network
- No hidden charges, repay 1.17x - 1.2x of funding amount, all-inclusive
Klub Aceler8
Get funding of: ₹50 Lakhs - ₹30 Crore
- 12 to 18 months tenure
- 1-10% revenue share
- Funded by Klub's SEBI registered fund
- No hidden charges, repay 1.17x - 1.2x of funding amount, all-inclusive
We are currently focused on the following sectors:
Fashion, beauty & personal care, lifestyle & accessories
FMCG, health & wellness, food & beverage, cloud kitchens
Direct to consumer & subscription businesses, consumer apps & games
Klub invests in entities incorporated and operational in India. Within the country, most of our brands are based out of Bangalore, Delhi, Mumbai, Pune or Hyderabad. We are expanding to South East Asia soon!
Klub offers capital starting from Rs 5 Lakhs up to Rs 2 Crores. The exact amount is a function of your scale, business performance, and funding needs. For more details on our products, please check out our brand page.
Klub provides financing options ranging from 3 months to 18 months, based on your business performance, amount and use of funds. For more details on our products, please check out our brand page.
Klub allows brands to prepay and close the financing before the maturity date, if agreed upon return commitments are met. Please contact a Klub team member if you would like to understand more.
Our products have no impact on the equity ownership and board constitution of your company.
| Apply | Assessment | Funding | Repayment |
|---|---|---|---|
| Share your business and financial data securely | Our underwriting engine evaluates your brand and creates a term sheet | Confirm commercials and sign documentation to access financing | Pay via easy revenue shares, till your flat fee is paid off |
To get started, please share your information here
Patrons = Brand Super-fans
Our patron investors are affluent individuals who want to support brands they believe in. Klub enables you to turn your biggest believers into your investors.
Patron Community = Brand Building + Micro-Influencers
Patron community helps enhance the brand's image by sharing the brand in their communities.
Patron Benefits = Revenue Opportunities
Our patrons shift a significant share of their wallet to brands on Klub's platform by engaging through patron benefits.
Please note that Patrons as a source of capital is only available for Klub Gro customers.
Patrons are investors who help provide growth financing to brands on the Klub platform.
- Above market investment returns via an attractive alternative investment opportunity
- Make a difference for a brand that you love and care about by enabling them to grow
- Be a part of an exclusive Patron Benefits Program for a brand that you love
We are currently focused on the following sectors:
Fashion, beauty & personal care, lifestyle & accessories
FMCG, health & wellness, food & beverage, cloud kitchens
Direct to consumer & subscription businesses, consumer apps & games
The minimum investment amount is Rs. 5 lakhs per investment.
Patrons can choose to invest in as many brands as they are comfortable with (subject to the brand’s acceptance of investment).
Patrons can also choose to invest in a broad-based category or at a platform level, where their investments will be deployed by Klub into the brands that fit the patrons’ investment thesis.
Patrons cannot close out their investments before the tenure. If the target payout is reached before the investment tenure, the instrument retires.
Yes. Klub charges a platform fee to patrons, depending on their investment type. For details, please contact the Klub team at patrons@klubworks.com.
Klub will provide a detailed investor memo for each brand. Patrons have full access to the brand's financial and operational information to enable decision making. As a process, Klub does not accommodate requests for discussions with brands or access to brand founders.
Klub’s risk assessment team recommends a returns pricing on the basis of the Klub Score that is calculated for each brand. Returns are a function of tenure, perceived risk and financial comfort Klub has with a brand. Klub does not enable price discovery i.e. each transaction is priced by Klub and then available to patrons for investing.
After funding, Klub takes between 2% - 15% of the brand’s revenue as repayment. Klub ensures this by collecting a share of the brand’s revenue on a high-frequency basis, which is then paid out to patrons on a monthly basis.
Klub will remit repayments to patrons on a monthly basis.
Patrons are investing in early-stage brands. They are exposed to all the risks associated with early-stage startups, including the risks of the brand not scaling up, being impacted by macro factors, key founders and employees leaving, etc. For a full list of risks, please refer risk page.
Before listing a brand on its platform, Klub does a 360 degree due diligence on the brand. Due diligence will include, but will not be limited to, the health of the brand’s financial statements, projections, operational scalability, sector assessments, and social rating of the brand.
Based on these inputs, Klub creates a Klub Score which will give patrons an idea about the different risks associated with the investment.
This is a rigorous process and is done for each brand that is listed on Klub’s platform.
No, we do not fund any brand that is launching a new product or service. Klub’s goal is to provide growth capital to brands that have demonstrated their product-market fit and/or the service-market fit and is now ready to scale.
Our assessment criteria require a brand to be operational for at least 12 months with demonstrated revenues before seeking financing on the platform.
Yes, Klub will verify where the capital provided by patrons is being utilized. Klub facilitates capital for marketing, inventory, and capex usage by its brand partners.
Every Patron on Klub will be offered an exclusive membership to the Patrons Benefits Program. Patron Benefits are a way for patrons to be deeply engaged with brands they care about, and also realize additional social benefits.
- Exclusive masterclasses
- Community events
- Welcome packages
- Memorabilia
- Special discounts, and more.
These benefits will be across the brands in Klub’s partner network. Patrons can redeem points to access these benefits on Klub’s platform across brands. Points will be given to Patrons based on their funding amounts, referrals, and brand engagement.
Yes. A patron who drops off from an investment opportunity after being approved more than once within a 90-day period will be suspended from the platform for the next three months.
