Revenue-Based Financing

Also called RBF

Revenue-based financing gives a startup capital in exchange for a fixed percentage of future revenue until a set amount is repaid, rather than equity or a fixed loan.

Why it matters

RBF is a non-dilutive option for businesses with steady, predictable revenue, common for D2C and SaaS. It avoids giving up ownership, but the effective cost can be high, so the math needs checking.

For example

A profitable D2C brand takes 1 crore in revenue-based financing and repays it as 6 percent of monthly sales until it has paid back 1.3 crore, giving up no equity.

Worth your time

Recur Club (revenue-based financing and debt for Indian founders) Recur Club · article When you need a one-time cash injection without giving up equity, this is an actual India-based platform you can approach, offering revenue-based financing, venture debt, and term loans against recurring or repeat revenue. It fits founders here better than most global names because it underwrites in INR and works with businesses building outside the big startup hubs, not just metro-VC-backed ones. GetVantage is a comparable Indian provider worth pricing against it, so treat these as starting points to compare terms, not the only doors. Open recurclub.com →

Related terms

Venture Debt Grant Bootstrapping

Go deeper

See how founders actually handle this on Raising your first round, part of the Starting Up hub.

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