Third wave of venture finance: Revenue-based lending takes root in India’s lush digital economy.

Concept by Muhabit ul haq

Synopsis

This new form of funding has been fast gaining ground since the breakout of the pandemic. Nearly a thousand Indian digital startups and small businesses have adopted revenue-based financing. Still in its infancy, this flexible, small-ticket, short-term, and non-dilutive capital is in high circulation.

Zero. When the pandemic broke out in early 2020 and a lockdown was declared, that was Pipa Bella’s sales for two months. Even the logistics of daily essentials were in trouble. In that logjam, jewellery was the last thing to move from warehouses. As the lockdown was gradually lifted by mid-2020, Pipa Bella’s founder Shuchi Pandya was scrambling for resources to restart the business. “We wanted to reacquire customers. We wanted to launch

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