New Delhi [India], January 7 (ANI/Mediawire): Have you heard of the new entrant in the Fintech space that is building an entirely "new" asset class based on recurring revenue contracts? Interestingly, the modus operandi of this platform is based neither on equity nor on loan, but at the same time can help companies raise instant capital without incurring debt or dilution. Curious to know how? Read on...
The brainchild of the talented trio Zeus Dhanbhura, Jahangir Panday and Dipen Patel, BridgeUp is a first of its kind subscription-financing platform not only in India but the whole of Asia-Pacific that treats subscriptions as an asset class. It creates opportunities for businesses to raise money in a unique way by monetizing their monthly or quarterly subscriptions for their annual value, directly through its trading platform; making it the most cost-efficient way for SaaS and recurring revenue companies to access upfront capital.
To make it more simple, BridgeUp is a marketplace connecting companies having monthly or quarterly recurring revenue that need funding with investors who bid to purchase these recurring revenue contracts for their annual value, upfront, thereby letting business owners remain in control their cash flow.
Says Manoj Shenoy, CEO, IIFL Asset Management Ltd. of this latest venture in Fintech, "For years, legacy financial institutions have struggled to successfully invest in startups since they do not have the risk appetite or mechanism to assess new-age technologies or their revenue models. BridgeUp breaks down the risk of both venture capital and debt by stripping the revenue from an invoice and allowing the revenue itself to be treated as an asset which in turn becomes a much safer bet due to the predictability and growth of recurring revenue streams."
At a CAGR of 51 per cent, revenues in India from just SaaS enterprises are expected to grow to a staggering $50 - $70 Billion by 2030, according to SaaSBOOMi & McKinsey report. "The future of technology is currently being written in India. We have the talent and most importantly the desire to create organizations which change the face of technology. As witnessed recently we can do that all from within India itself. BridgeUp is well equipped to support these companies by providing quick and easy access to capital," says Zeus Dhanbhura, CEO of BridgeUp.
Endorsing BridgeUp Vishal Tulsyan, CEO & Managing Director, Motilal Oswal Private Equity says, "Giving financial institutions access to a new asset class backed by companies' recurring revenue streams is one of the best things to come out of the fintech ecosystem. Investors are always looking for alternative sources of yield and the ability to earn fixed income returns on underlying contracts is tempting."
WHO IS BRIDGEUP FOR?
BridgeUp is industry agnostic, and the brand counts among its target audience, companies from SaaS, Services, Direct-to-Consumer (D2C) subscriptions, Media, OTT platforms and many more. "We are seeing a lot of traction from non-SaaS vertical markets too including direct-to-consumer (D2C) subscriptions, and service-based businesses," says Jahangir Panday, COO, BridgeUp.
Kuldeep Dhankar, Co-founder of Last9 and Ex-SVP of Enterprise Business at CleverTap elucidates, "SaaS in India is growing at a tremendous rate. The utility BridgeUp brings to the table for SaaS by allowing them to accept monthly or quarterly payments without discounting their services heavily is immense."
This is how one can raise capital through BridgeUp:
1). Sign up on BridgeUp2). Complete other formalities like linking your bank, payment processing, and accounting software.3). Instantly get assigned a score for your subscription revenue.4). Once approved, BridgeUp will immediately let you know how much investors are willing to pay for your subscription revenue.5). An auto-populated list will let you choose which of your contracts or how much you want to trade. 6). Click on the "Payout" button to receive the money within 48 Hours.7). Pay back when your customers pay you.
Not only is raising funds through BridgeUp simple, it is also more beneficial compared to traditional funding mechanisms like equity, venture capital or revenue-based financing and solves the pain point for SaaS companies allowing them to turn MRR (Monthly Recurring Revenue) into ARR (Annual Recurring Revenue); unlocking immense value for them by enabling them to encash their most prized assets - recurring revenues. For the first time such businesses can focus purely on investing in growth and scale rapidly, all without disrupting existing workflows.
Tech and non-tech businesses all over the world are switching to subscription-based models. BridgeUp is the only channel through which recurring revenue from subscriptions can be treated & traded as assets.
With BridgeUp, companies can trade their monthly recurring revenue contracts in exchange for the annual value of those contracts. For entrepreneurs, that means more cash flow for scaling their business without debt or dilution at the click of a button. For investors, BridgeUp unlocks one of the largest untapped asset classes - revenue.
To learn more, visit https://bridgeup.com/ or stay updated by connecting with BridgeUp on LinkedIn and Twitter
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