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? The modus operandi of the platform can help companies raise instant capital without having to incur debt or dilution, because it is based neither on equity nor on loan. BridgeUp is a first of its kind subscription-financing platform that treats subscriptions as an asset class, not only in India but in the whole of Asia-Pacific. BridgeUp is a marketplace connecting companies with monthly or quarterly revenue that need funding with investors who bid to purchase these recurring revenue contracts upfront for their annual value, so business owners can stay in control of their cash flow.
Manoj Shenoy, CEO, IIFL Asset Management Ltd., said that legacy financial institutions have struggled to invest in startups for years because they don't have the risk appetite or mechanism to assess new-age technologies or 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 safer bet due to the predictability and growth of recurring revenue streams. Revenues from SaaS enterprises in India are expected to grow to a staggering $50-70 billion billion by the year 2030, according to SaaSBOOMi McKinsey's report, which has a CAGR of 51 per cent. The future of technology is currently being written in India. We have the talent and the desire to create organizations that change the face of technology. We can do that all from India itself, as seen recently. CEO of BridgeUp, Zeus Dhanbhura, said BridgeUp is well equipped to support these companies by providing quick and easy access to capital.
Motilal Oswal Private Equity says that 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. The ability to earn fixed income on underlying contracts is something investors are looking for alternative sources of yield. Jahangir Panday, COO, BridgeUp, says we are seeing a lot of traction from non-SaaS vertical markets, including direct-to consumer D 2 C subscriptions and service-based businesses.
Kuldeep Dhankar, Co-founder of Last 9 and Ex-SVP of Enterprise Business at CleverTap elucidates, said that SaaS in India is growing at a tremendous rate. BridgeUp is a utility for SaaS by allowing them to accept monthly or quarterly payments without discounting their services heavily. How can I raise capital through BridgeUp?
2 Complete other formalities like linking your bank, payment processing, and accounting software are also included.
4 Once approved, BridgeUp will let you know how much investors are willing to pay for your subscription revenue.
An auto-populated list will let you choose which of your contracts or how much you want to trade.
7 Pay back when your customers pay you.
It is not only simple to raise funds through BridgeUp but it is also more beneficial than traditional funding mechanisms like equity, venture capital or revenue-based financing and solves the pain point for SaaS companies by allowing them to turn their MRR Monthly Recurring Revenue into an ARR Annual Recurring Revenue, which unlocks immense value for them, as they can encash their most prized assets through recurring revenues. For the first time, such businesses can focus on investing in growth and scale quickly, all without disrupting existing workflows.
Tech and non-tech businesses all over the world are switching to subscription-based models. Companies can trade their monthly recurring revenue contracts in exchange for the annual value of their contracts, with the help of BridgeUp. That means more cash flow for scaling up their business without debt or dilution at the click of a button. One of the largest untapped asset classes is revenue from BridgeUp, which is one of the biggest untapped asset classes for investors.
To learn more, visit https: bridgeup.com or stay updated by connecting with BridgeUp on LinkedIn and Twitter.
The story was provided by Mediawire.