Dubai: New ways of tapping funds keep opening up for UAE based SMEs, with Indian fintech Klub launching its services here after getting a license from ADGM (Abu Dhabi Global Market). The licensing is for the newly created ‘credit fund’ regime.
How this works is relatively straight-forward; Klub will use its pool of funds to create loans and/or purchase existing loans. It help those companies that typically find it difficult to tap banks for their loan requirements.
In India, the company has provided more than Dh400 million worth of financing support for ‘digital businesses’. “The flexibility of the Klub platform enables us to provide tenors ranging from 2 days to 2 years, depending on the financing needs and data-driven risk-return matching algorithms,” said Anurakt Jain, co-founder and CEO at Klub.
The ADGM license gives Klub permission to manage private credit funds under the newly instituted credit fund regime from Financial Services Regulatory Authority (FSRA).
"Klub has always believed in the vision of supporting business across growth stages, from young SMEs to unicorns and large stable businesses,' said Jain. "We aim to empower growth for SMEs and startups across stages (early, growth and late stage) in the Middle East."
This makes it the ‘first revenue-based financing focused credit fund to expand in the Middle East’. One of the goals will be the establishment of a Dh1 billion credit umbrella focusing on ‘investing in credit products for the growth of SMEs and startups in the region’.
“The most unique selling point Klub offers is the speed with which we provide (business) founders with an easy access to capital, which is in as less as 48 hours,” said Jain. “This USP has enabled us to facilitate growth for over 600 brands that are in our portfolio in India till date - and this is in over 1,600 investment rounds. We aim to bring the same USP in the Middle East as well.
"We work on a data-tech heavy model where we do risk-return matching (and) ensuring outcomes for both the brand as well as investors.
