Klub's Progress: AED 1 Billion Credit Fund Marks New Era for Middle East Startups
Klub, India's Revenue Based Financing platform, has announced its expansion into the Middle East, beginning with the UAE. The platform has secured regulatory approval (Category 3C) from the Financial Services Regulatory Authority of ADGM to manage private credit funds under the newly instituted credit fund regime.
This regulatory milestone positions Klub as the first Revenue Based Financing-focused credit fund to enter the Middle East region. An integral aspect of this expansion is the establishment of a substantial AED 1 billion credit umbrella, dedicated to investing in credit products aimed at the growth of SMEs and startups in the region.
Klub’s platform offers a swift and entirely digital application and assessment process, ensuring flexible credit provision to digital SMEs. The platform's innovative approach aims to democratise access to a diverse range of financing products. The newly acquired license also enables Klub to collaborate with regulated banks in the Middle East.
Anurakt Jain, Co-Founder and CEO at Klub, emphasised the company's commitment to driving growth for local businesses. "Our expansion to the Middle East, starting with the UAE, is the first step in this direction," he stated. With 60 percent of the region's GDP being driven by SMEs, Klub aims to address the need for fast and flexible financing solutions, effectively bridging the existing gap.
Co-Founder and COO Ishita Verma echoed Jain's sentiments, expressing excitement about bringing Klub's technology and e-commerce financing expertise to the Middle East. She highlighted the platform's successful deployment of over AED 400 million to digital businesses in India since its inception.
The approval from ADGM, renowned for its regulatory environment financial innovation, marks a significant boost for Klub. Arvind Ramamurthy, Chief of Market Development at ADGM, expressed confidence in Klub's alignment with ADGM's vision for financial innovation. He anticipates that Klub's presence in ADGM will contribute to the development of Abu Dhabi's financial landscape.
Klub's expansion into the Middle East represents a transformative moment for Revenue Based Financing. The platform's technology suite promises more accessible and innovative AI-enabled financing solutions, with a continued dedication to supporting international businesses' growth and success.
The Klub Group, with its deep expertise and established credentials, has deployed over AED 400 million in 1600 investment rounds, facilitating growth for more than 600 digital businesses. In 2022, Klub successfully closed its maiden AED 100 million SEBI-registered credit fund in India, which is now fully deployed. Klub’s technology arm has secured over AED 80 million in funding from prominent investors, including Peak XV’s Surge, Alter Global, Japan-based GMO Venture Partners, and 9Unicorns.