Bhavik Vasa, an experienced Fintech entrepreneur and former CBO of the first online wallet ItzCash in India, has introduced a new financial technology project, called GetVantage, which is a revenue-based financing (RBF) platform for the e-commerce industry.
GetVantage has acquired capital from several early-stage investment firms including Samyakth Capital, Venture Catalysts, and Astir Ventures. Angel investors including Manish Patel (MSwpie) and Ankit Agarwal (Innoven Capital) have also invested in the startup.
Several non-banking financial companies (NBFCs) and debt funds have financed GetVantage’s operations as well. The company now intends to further expand into new markets across the Southeast Asia region, beginning with Singapore.
RBF is based on a relatively new alternative investment model through which a firm secures funding from investors based on data-driven estimates of its future earnings. The model doesn’t require company owners to dilute equity or control of their business. It also doesn’t ask its owners to provide collateral or any personal guarantees. The investor is able to recover the capital invested as a share or percentage of the company’s future earnings. This amount usually includes the principal sum and a flat fee.
Headquartered in Mumbai, GetVantage is reportedly the first and only fully functional smart alternative funding solution in India that allows startups to secure early-stage funding without having to dilute ownership. GetVantage also helps local investors in supporting India’s Fintech economy growth in a more sustainable manner.
“The traditional process of raising capital is complex, cumbersome, and simply doesn’t work for all enterprises and business owners. As a result, India’s burgeoning young entrepreneurs and their digital-first businesses continue to be highly underserved.”
He also mentioned that the RBF could play an important role in improving India’s startup and online enterprise sector. The main concepts and idea behind RBF came from the realization and understanding that online businesses require appropriate financing solutions that can work for founders by supporting their mission and goals, instead of working against them.
This alternate funding model is becoming increasingly popular in foreign markets, with companies such as Clearbanc, Lighter Capital, and RevUp Capital working towards transforming how digital brands are acquiring funding.
Anuj Golecha, founder at Samyakth Capital and co-founder Venture Catalyst remarked:
“Financing is entering an interesting phase and there is an urgent need to democratize the fundraising process. We’re excited to be at an inflection point of a new asset class getting structured in the form of Revenue-Based Financing.”
The funding process via RBF is data-driven and founders only have to pay a flat fee, which is recovered as shares of a company’s future earnings.