Recur Club, a recurring revenue-based financing company, has allocated $15 million in funds to Indian start-up founders affected by the Silicon Valley Bank crisis

The company will not charge platform fees on this, it said.

While the exact number of Indian start-ups with SVB accounts is not known, more than 50 per cent of Indian SaaS companies are estimated to have a US presence, a majority of which were banking with SVB. 

It is safe to assume that over 1,000 Indian start-ups have been directly affected by the SVB fiasco, and many more are likely to be indirectly affected. The affected companies range from early-stage to late growth stage, the company said.

According to the co-Founder of Recur Club, Eklavya Gupta, the incident underlines the criticality of diversification, be it customers, banking, or investors. More than 100 start-ups have approached it for immediate payroll financing and managing short-term expenses. 

Many of the companies had SVB as the sole bank account or had a majority of liquidity parked with it. Caught in the crisis, they are now forced to arrange a banking partner, as well as liquidity to sustain operations.

Fintechs such as Recur Club provide start-ups instant non-dilutive financing solutions to fund their payroll and short-term working capital requirements, within 48 hours of receiving the companies’ data and without diluting equity. 

In addition, it is also facilitating opening bank accounts in GIFT City within 24-48 hours, by taking special exemptions, it said. 

It currently works with companies that have a predictable annual revenue of at least $100,000 from existing customers of greater than one year of vintage, and more than three months of runway. Recur Club has funded more than 300 companies, said the company.