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Tue, 25 Jan 2022 | The Economic Times
BridgeUp: India’s first Recurring Revenue Trading Platform

BridgeUp: India’s first Recurring Revenue Trading Platform

Have you heard of the new entrant in the Fintech space that is building an entirely “new” asset class based on recurring revenue contracts? Interestingly, the modus operandi of this platform is based neither on equity nor on loan, but at the same time can help companies raise instant capital without incurring debt or dilution. Curious to know how? Read on…

The brainchild of the talented trio Zeus Dhanbhura, Jahangir Panday and Dipen Patel, BridgeUp is a first of its kind subscription-financing platform not only in India but the whole of Asia-Pacific that treats subscriptions as an asset class. It creates opportunities for businesses to raise money in a unique way by monetizing their monthly or quarterly subscriptions for their annual value, directly through its trading platform; making it the most cost-efficient way for SaaS and recurring revenue companies to access upfront capital.

To make it more simple, BridgeUp is a marketplace connecting companies having monthly or quarterly recurring revenue that need funding with investors who bid to purchase these recurring revenue contracts for their annual value, upfront, thereby letting business owners remain in control of their cash flow.

Says Manoj Shenoy, CEO, IIFL Asset Management Ltd. of this latest venture in Fintech, "For years, legacy financial institutions have struggled to successfully invest in startups since they do not have the risk appetite or mechanism to assess new-age technologies or their 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 much safer bet due to the predictability and growth of recurring revenue streams.”

At a CAGR of 51%, revenues in India from just SaaS enterprises are expected to grow to a staggering $50 - $70 Billion by 2030, according to SaaSBOOMi & McKinsey report.

WHO IS BRIDGEUP FOR?

BridgeUp is industry agnostic, and the brand counts among its target audience, companies from SaaS, Services, Direct-to-Consumer (D2C) subscriptions, Media, OTT platforms and many more. “We are seeing a lot of traction from non-SaaS vertical markets too including direct-to-consumer (D2C) subscriptions, and service-based businesses,” says Jahangir Panday, COO, BridgeUp.

Not only is raising funds through BridgeUp simple, it is also more beneficial compared to traditional funding mechanisms like equity, venture capital or revenue-based financing and solves the pain point for SaaS companies allowing them to turn MRR (Monthly Recurring Revenue) into ARR (Annual Recurring Revenue); unlocking immense value for them by enabling them to encash their most prized assets - recurring revenues. For the first time such businesses can focus purely on investing in growth and and scale rapidly, all without disrupting existing workflows.

With BridgeUp, companies can trade their monthly recurring revenue contracts in exchange for the annual value of those contracts. For entrepreneurs, that means more cash flow for scaling their business without debt or dilution at the click of a button. For investors, BridgeUp unlocks one of the largest untapped asset classes - revenue.