Klub provides working capital of Rs. 10 crore to D2C businesses

BANGALORE, India - May 31, 2023 - PRLog -- Klub, the leading revenue-based financing platform in India, announced that it has invested INR 10 crores in direct-to-consumer (D2C) companies to boost their working capital before the summer sale on fast-commerce platforms. This equity free funding includes support for Local Ferment Co., Papacream, NOTO Ice Cream, and Artinci.

As major quick-commerce marketplaces such as Swiggy, Instamart, Zepto, and Dunzo gear up for their summer sales in the upcoming quarter, D2C brands offering summer-specific products like ice cream and cold drinks require equity free funding for startups to procure inventory and enhance their performance marketing to generate more revenue during these sales.

According to reports, sales of cold beverages have been on the rise for the past month with the early onset of summer. Soft drink and juice makers have seen a 30-35% year-on-year increase in sales in February.

As the summer season approaches, D2C brands like NOTO Healthy Ice Cream are focused on leveraging their working capital to meet the anticipated surge in demand. This includes launching new product lines, ensuring sufficient inventory to keep up with demand, expanding delivery capabilities, and running aggressive marketing campaigns. NOTO Healthy Ice Cream plans to strategically raise its equity free startup funding through Klub's platform and allocate it ahead of these sales to continue driving growth.

A report by RedSeer suggests that Q-commerce can currently cater to 20 million Indian households, which is only 7% of the overall market, indicating its untapped potential. The growth of online consumables across the country is expected to boost the instant market's expansion, with almost 50% of growth anticipated to come from metros and Tier I regions.

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