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GetVantage
GetVantage is a financial technology company that provides revenue-based financing as an alternative funding solutions to small and medium-sized enterprises and startups.[1] HistoryFounded in 2019, GetVantage provides businesses with non-dilutive funding by advancing capital based on projected revenue.[2][3] Businesses repay the financing through a percentage of their future revenues, aligning repayment with their cash flow.[4][5] However, it limits the use of the debt to sales and marketing activities where the return on investment can be measured.[6] In May 2023, GetVantage obtained a license as a non-banking financial company from the Reserve Bank of India for its NBFC division, GetGrowth Capital.[7][8] FundingThe company is funded by Chiratae Ventures, Varanium, InCred, DMI, and Japanese entities such as Sony and DI.[9][10][11] CriticismGetVantage'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.[12] References
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