Fintech platform Recur Club on Sunday said it has allocated $15 million in financing within 48 hours, to fund payroll and immediate short-term expenses without diluting equity to all Indian startup founders affected by the Silicon Valley Bank (SVB) collapse.
To further bolster and support the ecosystem, Recur Club will not charge any platform fees.
"This incident tells us about the criticality of diversification, be it customers, banking, or investors in a business. Recur Club has received interest from more than 100 startups regarding immediate Payroll financing and managing short-term expenses," said Eklavya Gupta co-Founder, Recur Club.
While the exact number of Indian startups with SVB accounts is not known, more than 50 per cent of Indian software-as-a-service (SaaS) companies are estimated to have a US presence, out of which a majority were banking with SVB.
It is safe to assume that over 1,000 Indian startups have been directly affected by the SVB fiasco and there will be many more who are likely to be indirectly affected.
The affected companies range from early-stage to late-stage growth stage.
Recur Club is working to provide instant non-dilutive financing solutions for startups to fund their payroll and short-term working capital requirements within 48 hours of receiving the companies' data and without diluting equity.
"In addition, Recur Club is also facilitating opening bank accounts in GIFT city within 24-48 hours by taking special exemptions for enabling the startup community to flourish," it added.
Recur Club currently works with companies that have predictable annual revenue of at least $100,000 from existing customers, greater than one year of vintage, and more than three months of runway.
Founded in 2021 by IIM Calcutta alumni, Abhinav Sherwal and Eklavya Gupta, it has funded more than 300 companies.