Revenue-linked financiers bet big on SaaS companies

Revenue-based financiers are increasingly seeing an opportunity in cash-flow based lending in India’s early-stage software startups segment, as equity funding gets expensive and the bar for investment gets higher.

Over the past month, revenue-based financiers such as GetVantage and Velocity have set aside a dedicated corpus of Rs 250 crore and Rs 300 crore respectively, to meet the growing demand for this kind of debt financing in the software-as-a-service (SaaS) industry.