Have you heard about the new Fintech entrant who is creating an altogether “new” asset class based on recurring revenue contracts?
Surprisingly, this platform’s business model isn’t based on stock or debt, but it can enable businesses obtain funds quickly without taking on debt or dilution. Do you want to know how to do it?
BridgeUp, the brainchild of the creative trio Zeus Dhanbhura, Jahangir Panday, and Dipen Patel, is a first-of-its-kind subscription-financing platform that regards subscriptions as an asset class not only in India but throughout Asia-Pacific.
It allows businesses to generate funds in a unique way by monetizing their monthly or quarterly subscriptions for their annual worth directly through its trading platform, making it the most cost-effective way to raise money for SaaS and recurring revenue.
To put it another way, BridgeUp is a marketplace that connects firms that need finance and has monthly or quarterly recurring revenue with investors who bid to buy these recurring revenue contracts for their annual worth upfront, allowing business owners to keep control of their cash flow.
“For years, traditional financial institutions have struggled to successfully engage in startups because they do not have the risk appetite or process to analyze new-age technologies or their revenue models,” says Manoj Shenoy, CEO, IIFL Asset Management Ltd. BridgeUp reduces the risk of both venture capital and debt by separating the income from an invoice and treating the revenue as an asset, making it a far safer investment.
Endorsement of BridgeUp Motilal Oswal Private Equity CEO and Managing Director Vishal Tulsyan adds, “One of the best things that have come out of the fintech ecosystem is giving financial institutions access to a new asset class supported by companies’ regular revenue streams. Investors are always on the lookout for new methods to make money, and the opportunity to earn fixed income returns on underlying contracts is appealing.”
FOR WHOM IS BRIDGE UP INTENDED?
BridgeUp is industry agnostic, with firms from SaaS, Services, Direct-to-Consumer (D2C) subscriptions, Media, OTT platforms, and more among its target clientele. “Non-SaaS vertical markets, such as direct-to-consumer (D2C) subscriptions and service-based enterprises, are experiencing a lot of traction,” says Jahangir Panday, BridgeUp’s COO.
Subscription-based business models are being adopted by both tech and non-tech companies all around the world. BridgeUp is the only platform that allows recurring subscription revenue to be classified and exchanged like an asset.
Companies can use BridgeUp to trade their monthly recurring income contracts for the annual value of the contracts.
This means increased cash flow for entrepreneurs to scale their businesses without debt or dilution at the touch of a button. BridgeUp gives investors access to one of the world’s largest untapped asset classes: revenue.