The problem
The startup was DPIIT-recognised with steady ARR, but every proposal was written as an investor deck. Credit committees wanted repayment capacity, not growth multiples, and the company had no collateral to offer.
What we did
- Translated ARR, retention and contribution margin into evidence of revenue durability
- Built the repayment case from contracted revenue and the month operating cash flow turns positive
- Modelled the annual guarantee fee as a distinct finance cost in every year, so DSCR was not overstated
- Set out the collateral-free justification and the guarantee cover position explicitly
Outcome
Sanctioned by a member institution as venture debt with a moratorium aligned to the deployment schedule. The founders extended runway by four quarters without a down round.