Following the growth potential in the near future, two fintech veterans Bhavik Vasa and Amikt Srivastava co-founded GetVantage in 2019. The start-up works on the B2B2C model. To understand the product this star-up has to offer, it essential TO understand the concept of revenue-based financing.
The concept of revenue-based fundraising is in fashion now. Also known as royalty-based financing, more and more star-ups have taken the path of this kind of fund raising. It has paved a way for small business companies and start-ups to raise their capital without their limited business metrics such as asset size, profitability, collateral size and business credit score. By the way of revenue-based financing all businesses can raise capital in exchange for a certain percentage from their gross revenue. The provision for investment is not on blind basis. The investor analyzes the company’s potential growth from its online sales, marketing, credit capacity and taxation data. The scheme gets an upper hand over traditional funding because in the former there are no collateral or stake in equity demanded by the investor financing the company. The risk of bad debts in the books of investors is least, because the repayment of financing happens constantly through the borrower’s market settlements and payments made to him. Repayment is done on a monthly or quarterly basis from the gross revenue generated by the borrower.
With the vision of access to capital to every growth potential business, GetVantage believe in raising capital for every business that is data-driven and based on business ethics and performance. Out of various types of financing, this is chosen by the start-up as it involves fintech innovation that competes with traditional financing. Fintech is a service that engage latest technology to analyses clients’ data and delivers financial services based on the output of data. Besides fintech innovation, it brings on the table the level of high-frequency collections, a founder ecosystem and community engagement.
The start-up was established in 2019 since then it has funded more than 40 businesses that includes Rage Coffee, Magic Crate and AutoBrix, etc. There are 17 set target sectors of GetVantage that includes e-commerce, D2C, SaaS, Edtech, F&B, Retail and health and wellness, among others. The team includes different expertise such as veterans from FinTech background, specialists working in alternative investment sectors, startup ecosystem enablers, tech experts and content creators. Some of their giant investor’s names are Chiratae Ventures, Dream Incubator Japan, Venture Catalysts and Samyakth Capital.
Perks of choosing GetVantage:
- Founder-friendly Capital- The start-up finances business up to US$ 500K in less than a week. The funding process is quick, non-colored and non-dilutive.
- Real-time Insights- It provides powerful business optimization tools and business intelligence to give you the inside edge.
- Extensive partner ecosystem- The network extending from marketing and logistics to payments and growth is pre-eminent.
- Trusted founder network- The policy of founder mentor relationship is proposed to help overcome growth challenges with the help of mentors.
- Founder-first philosophy- Instead of networking, pitching, finding answers and then negotiating, the star-up simply connects its users or clients to their digital marketing and plugs in their revenue accounts into its platform, after which its search engine conducts thorough analysis to look through the company’s future revenue system.
Procedure to access the capital:
- Share the information of your marketing and revenue data and get a spreadsheet that synthesize the data and make sit readily available to avail the capita.
- Once the spreadsheet is prepared scale up with equity-free funding up to US$ 500K in less than 7 days.
- Motivates to grow the business revenues as they share a percentage in the gross revenue.
What GetVantage offers:
| Offers | GetVantage | Venture Debt | VCs/ Angels |
| Equity Dilution | No | Yes | Yes |
| Board seat and rights | No | Yes | Yes |
| Collateral | No | Yes | No |
| Repayment Schedule | Flexible (% of revenues) | Fixed schedule | NA |
| Interest | No | Yes | No |
| Linked to Revenue Growth | Yes | No | No |
| Fundraising Period | 1-2 weeks | 3-4 months | 4-6 months |
| Underwriting | Data-driven | Personal-driven | Personal-driven |
The success stories of business portfolios GetVantage built shows that there are many young entrepreneurs who get in touch with the start-up to raise capital. The revenue-based financing reduces their stress and friction as they complain about, in traditional funding system. These founders include names of Rage Coffee, Arata, Settl, Bold Care, The Health Company.
References:
https://getvantage.co/about
https://www.thehindubusinessline.com/companies/revenue-based-financing-is-now-in-vogue/article34280886.ece
https://inc42.com/features/how-revenue-based-financing-is-solving-the-capital-requirement-for-the-400-bn-ecommerce-opportunity/
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