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Recur Club launches Rs 500 crore fund for D2C brands ahead of the festive season
Our read
Recur Club is likely to place most of its Rs 500 crore with roughly 150-170 D2C brands, front-loaded into festive inventory and store expansion, unless the 21% rise in packaging costs forces tighter underwriting.
For operators
Recur Club's Rs 500 crore fund, at an average ticket of about Rs 3 crore, gives D2C brands a source of festive inventory and store-expansion capital, but with demand for growth capital up around 35% and packaging costs up around 21%, apply early and budget for higher packaging costs.
Watch
Recur Club disclosing cumulative disbursals above Rs 275 crore, or a count of brands funded from the new Rs 500 crore pool
The report,
Recur Club expects the fund to support 150-170 brands needing festive-season inventory and store expansion capital, at an average ticket size of approximately Rs 3 crore. The fund covers the current financial year.
- D2C fund size
- ₹500 crore
- Average ticket size
- approximately ₹3 crore
- D2C brands expected to be supported
- 150-170
- Capital facilitated to D2C brands this financial year
- approximately ₹275 crore
Reported figures
From the report. Source details below
| Festive-season rise in growth capital demand: | around 35% |
|---|---|
| Rise in packaging costs: | around 21% |
What to track next
- Average ticket drifting away from about Rs 3 crore, which would break the 150-170 brand target
- Packaging cost inflation staying above or rising past the current 21%
- Festive-season sell-through reports from funded D2C brands
- A rival fund launch or a new lender tie-up announced by Recur Club