GetVantage is a financial technology company that provides

revenue-based financing Revenue-based financing (also known as royalty financing or royalty-based financing) is a type of financial capital provided to growing businesses in which investors inject capital (sometimes called an ''advance'') into a business in return for a f ...

as an alternative funding solutions to

small and medium-sized enterprises Small and medium-sized enterprises (SMEs) or small and medium-sized businesses (SMBs) are businesses whose personnel and revenue numbers fall below certain limits. The abbreviation "SME" is used by many national agencies and international organiza ...

and startups.

History

Founded in 2019, GetVantage provides businesses with non-dilutive funding by advancing capital based on projected revenue. Businesses repay the financing through a percentage of their future revenues, aligning repayment with their cash flow. However, it limits the use of the debt to sales and marketing activities where the return on investment can be measured. In May 2023, GetVantage obtained a license as a

non-banking financial company A non-banking financial institution (NBFI) or non-bank financial company (NBFC) is a financial institution that is not legally a bank; it does not have a full banking license or is not supervised by a national or international banking regulator ...

from the

Reserve Bank of India Reserve Bank of India, abbreviated as RBI, is the central bank of the Republic of India, and regulatory body responsible for regulation of the Indian banking system and Indian rupee, Indian currency. Owned by the Ministry of Finance (India), Min ...

for its NBFC division, GetGrowth Capital.

Funding

The company is funded by

Chiratae Ventures Chiratae Ventures, is a technology venture capital firm focused on growth-stage Startup company, startups in the Indian market. The venture firm was founded by Sudhir Sethi and T. C. M. Sundaram as the Indian arm of the global venture capital fi ...

, Varanium, InCred, DMI, and Japanese entities such as Sony and DI.

Criticism

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.

History

Funding

Criticism

References

Further reading