Recur Club Launches Rs 500 Crore Fund to Support D2C Brands Ahead of Festive Season

AI-native debt platform Recur Club has announced a Rs 500 crore fund to provide growth capital to D2C brands in the current financial year. The fund comes ahead of the festive season, when consumer brands usually need extra money to build inventory and prepare for higher demand.

With an average funding requirement of around Rs 3 crore per brand, the new fund could support nearly 150-170 D2C companies, depending on their individual financing needs.

Founded by Eklavya Gupta

Recur Club was co-founded by Eklavya Gupta, and the platform focuses on providing flexible debt solutions to startups and small and medium-sized businesses.

The company said it has worked with more than 500 D2C brands and has identified two major areas where these businesses often need additional capital, inventory financing and store or capacity expansion.

Helping Brands Build Inventory

Through its inventory financing solution, Recur Club helps D2C brands procure inventory without requiring them to immediately fund the entire purchase themselves.

The brands can then sell the inventory through their existing channels and repay the financing in instalments.

This model is designed to help brands manage their working capital during high-demand periods without putting additional traditional debt directly on their balance sheets.

Funding New Stores and Capacity

The second focus area is store and capacity expansion.

Recur Club helps brands finance equipment and fit-outs required for new stores. Instead of paying the full capital cost upfront, brands make monthly rental payments until the financing is repaid.

This effectively turns a large capital expenditure (capex) into an operating expense (opex), helping businesses expand while managing their cash flow.

Rs 275 Crore Already Facilitated This Year

Recur Club said it has already facilitated around Rs 275 crore for more than 100 D2C brands during the current financial year.

This has taken the company's cumulative capital facilitated for the D2C sector to around Rs 1,200 crore.

The company also has data from more than 5,000 D2C companies on its platform. According to this data, demand for growth capital typically increases by around 35% during the festive quarter.

Festive Season Creates a Funding Rush

For D2C brands, the festive period can be one of the biggest sales opportunities of the year. But preparing for this demand often requires brands to spend more on inventory, packaging, warehousing and distribution before the sales actually happen.

Recur Club said packaging costs have risen by around 21%, while quick commerce is taking a larger share of D2C sales.

This means brands increasingly need to keep more inventory ready and distribute it across multiple sales channels ahead of the festive rush.

Building Flexible Capital Solutions

According to Eklavya Gupta, Co-founder of Recur Club, the new fund is designed to solve the timing gap between when D2C brands need capital and when they receive revenue from their sales.

The company wants to structure repayments around the business cycle, giving brands more flexibility while they prepare for peak consumer demand.

With the ₹500 crore fund, Recur Club is looking to support more D2C companies as they scale inventory, open new stores and expand capacity during one of the most important periods of the year.

Key Numbers

• Rs 500 crore - New D2C growth capital fund
• 150-170 brands - Potential companies the fund could support
• Rs 1,200 crore - Cumulative capital facilitated for the D2C sector

Founder: Eklavya Gupta, Co-founder of Recur Club.