Mumbai-based fintech platform GetVantage that provides revenue-based financing for online businesses has raised USD 5 million in a seed round from Chiratae Ventures and Japanese venture capital fund Dream Incubator.
This funding round, which is a mix of equity and debt-line, comes ten months after an undisclosed investment from Samyakh Capital, Venture Catalyst, and Ashtir Ventures.
The company said it would provide working capital for over 200 online brands in the next two years across India and Southeast Asia. It plans to launch soon in Indonesia and Singapore.
Founded in January 2020 by former EbixCash executive Bhavik Vasa, along with industry veterans Amit Srivastava and Sachin Tagra, GetVantage provides internet businesses in India with short-term working capital to the tune of INR 2–20 million (USD 25,000–250,000).
GetVantage’s fintech platform analyzes companies’ financials which include data points such as their revenue, advertising, and marketing budget of the past one year. Based on these, it projects its future revenue and offers growth capital. The whole process of analyzing a company’s past performance, ascertaining its future revenue, capital disbursement, and payment collection is done digitally on its platform.
“Our entire process is paperless and takes place through our API. Based on the data we get, we are able to underwrite the risk of the businesses and assess its potential. Our algorithm analyzes this data and makes sense of it to predict the next 12 months’ revenue and return on their marketing spend,” Vasa, founder and CEO of GetVantage, told KrASIA in an earlier interview.
Once the capital is disbursed, companies repay the money in flexible and dynamic installments as it is based on the borrower’s revenue.
“As consumers have shifted online, more companies are looking at how they can take advantage of this digital-shift and the vast economic opportunities that come with it. Akin to Clearbanc and Stripe Capital, GetVantage is designed to help hundreds of small business owners with immediate and fair access to the capital they need to harness these new growth opportunities,” Vasa said in a statement.
Majority of its portfolio include direct-to-consumer (DTC) companies in categories including edtech, B2B SaaS, personal care, home care, health foods, and fashion & apparel.
“Their seasoned founding team has built a unique data-driven, alternative-financing model, which provides not only easy and flexible access to capital, but also world-class risk management. We also see strong synergies between GetVantage and our India portfolio of 23+ digital startups,” Munehiko Eto, managing director of Dream Incubator (DI) India, said in a statement.