Klub launches AED 1B (~$270M) credit fund for Middle East startups
What's the deal? India's Klub, a revenue-sharing financing platform, has launched an AED 1 billion (roughly $270 million) credit fund for startups and SMEs in the UAE and surrounding markets. The Abu Dhabi Global Market (ADGM)Dealroom has a profile for this one. Try Dealroom → granted it regulatory clearance to operate private credit funds.
Why now? Klub says the entry answers regional demand: SMEs generate 60% of Middle East GDP, yet many lack adequate access to capital. Co-founder and chief executive officer Anurakt Jain described the move as a direct response to that gap.
What's the endgame? The fund will offer flexible credit, including revenue-sharing agreements aimed at fast-growing startups, without collateral requirements or lengthy approvals. Klub's expansion follows its designation under ADGM's Category 3C framework, which permits fully digital issuance and management of credit products.
The license also lets Klub partner with local banks. Its automated underwriting system, already running in India, will support the branchless model it plans to scale across the Gulf.
By the numbers: Klub has allocated over AED 400 million across 1,600 investment rounds, backing more than 600 digital businesses. It closed a first AED 100 million credit fund in 2022, now fully deployed. Its technology division has raised over AED 80 million from investors including Peak XV's Surge, Alter GlobalDealroom has a profile for this one. Try Dealroom →, and GMO Venture Partners.
What could go wrong? Klub's AI-driven underwriting has worked in India, but Gulf markets favour structured loans over revenue-based arrangements. Its risk tools must also account for different economic cycles, regulations, and consumer behaviour, and success will hinge on localised compliance.
The signal: Revenue-based financing stays niche next to debt and equity, but Klub's arrival tracks broader efforts to speed fintech adoption in the UAE. Arvind Ramamurthy, ADGM's market development chief, said the platform's technology aligns with Abu Dhabi's push to modernise financial services.
Read more: astretchout.com
Image credit: Generated with Gemini
