SRP saga: Recur Club provides $15 million to fund salary payments for affected Indian start-ups

 SRP saga: Recur Club provides $15 million to fund salary payments for affected Indian start-ups

Fintech platform Recur Club said on Sunday that it has provided funding of USD 15 million within 48 hours to fund salary payments and short-term expenses without diluting equity for all Indian startup founders affected by the collapse of Silicon Valley Bank (SVB).

To further strengthen and support the ecosystem, Recur Club will not charge any platform fees.

"This incident shows us the importance of diversification, be it customers, banks or investors in a business. Recur Club has received interest from more than 100 startups for instant funding for payroll and managing short-term expenses," said Eklavya Gupta, co-founder of Recur Club.

While the exact number of Indian startups with SVB accounts is not known, it is estimated that more than 50 per cent of Indian software-as-a-service (SaaS) companies have a US presence, most of which bank with SVB.

It is safe to assume that more than 1,000 Indian start-ups have been directly affected by the SVB fiasco, and there will be many more that are likely to be indirectly affected.

The affected companies are in the early and late growth stages.

Recur Club is working to provide immediate, non-dilutive funding solutions to startups to fund their payroll and short-term working capital requirements within 48 hours of receiving company data, without diluting equity.

"In addition, Recur Club facilitates opening of bank accounts in the city GIFT within 24-48 hours by availing special exemptions to enable the startup community to flourish," it added.

Recur Club currently works with businesses that have a predictable annual turnover of at least $100,000 from existing customers, an age of more than one year and a start-up period of more than three months.

It was founded in 2021 by Abhinav Sherwal and Eklavya Gupta, graduates of IIM Calcutta, and has funded more than 300 companies so far.