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GetVantage

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GetVantage is a financial technology company that provides revenue-based financing as an alternative funding solutions to small and medium-sized enterprises and startups.[1]

GetVantage
GetVantage Tech Private Limited
Company typePrivate
Industry
Founded2019; 5 years ago (2019)
Founders
  • Bhavik Vasa
  • Amit Srivastava
Headquarters
Mumbai, Maharashtra
,
India
Area served
India
Products
Websitegetvantage.co

History

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Founded in 2019, GetVantage provides businesses with non-dilutive funding by advancing capital based on projected revenue.[2][3] Businesses repay the financing through a percentage of their future revenues, aligning repayment with their cash flow.[4][5] However, it limits the use of the debt to sales and marketing activities where the return on investment can be measured.[6]

In May 2023, GetVantage obtained a license as a non-banking financial company from the Reserve Bank of India for its NBFC division, GetGrowth Capital.[7][8]

Funding

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The company is funded by Chiratae Ventures, Varanium, InCred, DMI, and Japanese entities such as Sony and DI.[9][10][11]

Criticism

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GetVantage's RBF-based business model has faced criticism for requiring a share of monthly revenue until a repayment multiple is reached, often resulting in higher long-term costs than fixed-interest loans, especially during strong revenue periods. For early-stage startups and SMEs with slim margins, these costs can divert funds from growth areas like product development or market expansion. The model's dependence on fluctuating revenue cycles can be challenging in India's volatile market, potentially extending repayment periods and delaying profitability. Also, India's need for a clear regulatory framework adds legal risks, exposing startups to potential disputes and unfavorable terms.[12]

References

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  1. ^ Bardhan, Saptak (2022-11-02). "Simplifying Access To Funds". Entrepreneur. Retrieved 2024-08-14.
  2. ^ "Start-up Ecosystem Sees Surge in Demand for Revenue-Based Financing: Report". Outlook Business. 2024-03-18. Retrieved 2024-08-14.
  3. ^ Bera, Ayanti (2024-03-18). "Startups are now crowding for revenue-based financing". Financial Express. Retrieved 2024-08-14.
  4. ^ Singh, Rajiv. "How GetVantage Is Democratising Access To Working Capital For Underserved Businesses". Forbes India. Retrieved 2024-08-14.
  5. ^ "GetVantange invested in over 750 companies, mostly consumer facing firms in FY24". The Economic Times. 2024-05-31. ISSN 0013-0389. Retrieved 2024-08-14.
  6. ^ Velayanikal, Malavika (14 December 2020). "These founders took the road less travelled to reap rewards". Mint. Retrieved 15 August 2024.
  7. ^ "GetVantage secures NBFC licence". The Hindu. 2023-05-04. ISSN 0971-751X. Retrieved 2024-08-14.
  8. ^ "Revenue-based financing startup GetVantage secures NBFC licence from RBI". The Economic Times. 2023-05-04. ISSN 0013-0389. Retrieved 2024-08-14.
  9. ^ "GetVantage raises $5 million from Chiratae Ventures, Dream Incubators, others". Hindu Business Line. 2020-10-27. Retrieved 2024-08-14.
  10. ^ Bhalla, Tarush (27 October 2020). "GetVantage raises $5 million in funding led by Chiratae Ventures". Mint. Retrieved 15 August 2024.
  11. ^ "Revenue-based financing startup GetVantage bags $36 million". Financialexpress. 2022-07-01. Retrieved 2024-10-25.
  12. ^ Abbington, Nathan (2024-04-24). "The Dark Side of Revenue-Based Financing: A Critical Look at GetVantage and Others in India". IndraStra Global. ISSN 2381-3652. Retrieved 2024-10-25.

Further reading

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