Recur Club raises $50 million in hybrid funding, targets ₹10,000 crore ARR within two years

Fintech startup Recur Club has raised $50 million in a hybrid funding round, combining $8 million in equity with $42 million in debt, signalling its aggressive growth plans in India’s alternative lending space.

The company, which saw 120% growth last year, is now aiming for an annual run rate of ₹10,000 crore within the next two years. Eklavya Gupta, Founder and Co-CEO of Recur Club, said, “From a growth point of view, we’re looking at around a ₹10,000 crore annual run rate within the next two years.” The company earns through a percentage fee charged from borrowers and, selectively, from lenders, typically ranging from 2–2.5% depending on the borrower.

The equity portion of the funding will be used primarily to expand Recur Club’s marketplace, offer new debt products, and enter different geographies across India. Gupta added that the debt commitments on the platform are curated programmes with lenders, who will further onlend via Recur Club to various borrowers.

At the heart of Recur Club’s operations is AICA, its proprietary AI Credit Analyst. Abhinav Sherwal, Co-Founder and Co-CEO, explained, “AICA is connected to all the regulatory sources like your MCA, banking, GST, legal, as well as anything available on the web. So, imagine it’s almost like something on autopilot. Whenever a company comes in, we instantly create a 360-degree profile—whether it’s risk, compliance, or financials.” This system helps reduce decision-making time for unsecured loans from three months to just 48 hours.

Sherwal emphasised that AI acts as a co-pilot rather than a replacement for human judgment. “Our underwriting policies are always created and vetted by humans,” he said, highlighting the importance of trust and accuracy in lending.

In addition to its core lending operations, Recur Club has launched a ₹150-crore fund for D2C startups in the quick commerce space, with an average ticket size of around ₹3 crore per company. Gupta said more than 75% of the fund has already been deployed, reflecting strong demand. “Some of the brands that we speak to have grown like 5x in six months just on quick commerce,” he noted.

Looking ahead, Recur Club is also targeting other sectors beyond D2C and SaaS. Gupta identified manufacturing, solar, pharma, and agriculture as emerging areas of interest for the company’s funding strategy.

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