Revenue-based funding giant GetVantage has invested an undisclosed amount in healthy snack brand Eat Better to meet the growth funding needs of the start-up launched in August 2020.
The funds will primarily be invested to fuel expansion with a focus on marketing and new product launches in the coming months. The year-old direct-to-consumer company focuses on making nutritious snacks using natural ingredients with no added preservatives or sugar. Founded a year ago by Mridul Kanoria, the company has managed to build a customer base of over 15,000 people.
“Over the past 11 months, we have received an overwhelming response and recorded double-digit growth rates month after month,” Kanoria said.
Meanwhile, revenue-based financing or RBF has become a popular source of alternative financing for growth-stage businesses. Simply put, RBF refers to funding based on a company’s revenue. The borrower can pledge part of his monthly income to repay the loan. The advantage of RBF is that an entity has access to growth capital without collateral or sale of equity.
Because revenue-based financing is used when needed for start-up capital, the average ticket size is small compared to the type of financing typically granted by a venture capitalist or private equity player. Most RBF companies in India offer loans ranging from a few lakhs to a few crores.
Incidentally, GetVantage, which was founded in 2019 by Bhavik Vasa and Amit Srivastava, is one of the leading players in the RBF ecosystem and has invested in over 70 top digital brands to date. It plans to fund over 250 brands over the next 12 months.
Also Read: Mindtickle Latest Unicorn After SoftBank-Led Funding; valued at $1.2 billion
Also Read: Recent Unicorn Innovaccer Aims for 100% Annual Growth