The situation
Annual recurring revenue was growing steadily with low churn and mostly annual contracts billed in advance.
Traditional lenders discounted the business because it held few tangible assets.
Singapore ยท Enterprise software
A profitable software business wanted to accelerate hiring but was unwilling to price an equity round in a soft market.
Annual recurring revenue was growing steadily with low churn and mostly annual contracts billed in advance.
Traditional lenders discounted the business because it held few tangible assets.
We presented cohort retention, net revenue retention and contracted backlog in the format specialist lenders underwrite, rather than as a standard accounts pack.
Three revenue based lenders active in Asia were approached at the same time, with a clear ask and a defined use of funds.
A USD 2.5m facility was agreed, drawable in tranches against recurring revenue milestones, with no equity and no board seat.
The founders retained full ownership and used the first tranche to open two new markets.
Details are anonymised. Figures are rounded and identifying information is removed or altered to protect client confidentiality. Past transactions are not a guarantee of future outcomes.
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