Most founders assume there are only two ways to fund a business: sell equity or take a bank loan. Bhavik Vasa, founder and CEO of GetVantage, argues there is a third path built on your revenue data.
In this Builders Club Water Cooler conversation, he explains how revenue-based financing works, what it takes to qualify, and why he thinks capital should be matched to what a business actually needs.
What is revenue-based financing? Bhavik Vasa’s core thesis
Bhavik describes revenue-based financing as a quasi-equity structure that sits between equity and a traditional loan. A business receives a capital advance, pays one flat fee, and repays through a small percentage of future revenues. There is no equity, no personal guarantee and no collateral in the traditional sense.
His broader argument is that digital businesses should be funded on their own performance data, rather than on who knows whom. He calls this approach tech-driven funding, and frames GetVantage as a platform that gives capital plus support, not just a cheque.
- Match capital to purpose. Use expensive equity for experiments and R&D, and performance-linked capital for predictable growth spends.
- Data over gut. Past revenue, ad spend and seasonality drive the decision, with humans reviewing the qualitative side.
- Not for idea stage. The business needs revenue history, though he said six-month-old revenue-generating businesses can qualify.
- Founders help founders. He backs a peer support initiative for the lonely side of entrepreneurship.
How did Bhavik Vasa end up building GetVantage?
Bhavik grew up in a family of businessmen in Mumbai and began his career in the US, starting at Wells Fargo through campus placement. He then worked on early mobile payments and wallet pilots with large names, moved back to India around 2009 and built ItsCash, an early fintech, which was later acquired by Ebix.
He said there was no single eureka moment. As an operator he needed different kinds of capital at different times, and saw a gap in alternatives to equity.
How does revenue-based financing work for a startup?
The funder looks at the last 12 to 18 months, or the latest quarters, of revenue and operating performance. The business gets a capital advance and agrees one flat fee, so the cost of capital is known up front.
Repayment is a small share of future revenues, which Bhavik put at roughly five, ten or fifteen percent. Once the principal and fee are repaid, the round is over.
- One advance and one flat fee.
- Repayment scales with revenue, rising and falling with the business.
- No equity, warrants, convertibles, SAFE notes or personal guarantees.
- Ticket sizes of roughly five lakh rupees up to two or three crore, or about a quarter of a million dollars, as he described it.
Who is eligible for revenue-based financing?
Not idea-stage businesses. Bhavik said the model needs some trajectory and a run rate of revenue, so it is growth capital rather than a seed cheque. He clarified that GetVantage funds businesses that are about six months old if they generate revenue.
He said the company had funded more than 75 to 80 businesses across 18 to 19 categories at the time, including several coffee brands. He argued there is no competition issue because it does not take equity or control.
Which spends suit this kind of capital?
He pointed to costs with a clear link to revenue, such as digital marketing, inventory, logistics bills and cloud infrastructure for subscription businesses. He advised against using it for experiments or R&D.
How does GetVantage reduce risk and bias?
The platform connects to a business’s live data, such as payment gateways, shop platforms and ad accounts, to see revenue, spend and return on ad spend. Bhavik said this replaces the rear-view mirror of three-year-old balance sheets with a view of the latest 12 months, which also reveals seasonality.
Monitoring continues after funding through the same connections, which he described as an extra layer of security.
- The starting point is performance data, not a human impression of the industry or founder.
- About 80 percent of the work is technology, with roughly 20 to 30 percent human review.
- An investments lead and an analyst work on every deal.
What advice does he give first-time founders without a technical background?
Asked how a non-technical founder handles insecurity about a tech co-founder, Bhavik said it is just as hard the third time. He argued that admitting what you lack is the right first step, then bringing in the people you need, whether as co-founders or team members.
He added that ideas matter less than execution, and that founders learn alongside their experts. His host added that trust and working compatibility matter more than skill sets.
- Be honest about the skills you lack.
- Bring in the right people in whatever form fits.
- Keep taking risks and expect bad experiences to teach you.
- Focus on execution rather than guarding the idea.
What is Founders for Founders?
Bhavik described it as an initiative that began during the pandemic, offering one-on-one 20-minute chats between founders and operators who just want someone to talk to. His point was that entrepreneurship is lonely and mental health is rarely discussed.
He said nobody needs answers, only someone to listen, and invited The Builders Club to collaborate.
What trends does he see for Indian businesses?
He saw a once-in-a-decade shift in consumer comfort with buying and paying online. His advice to brands was to move customers toward prepaid orders and sell directly through their own channels rather than relying only on marketplaces.
He was optimistic about local brands and about profitable businesses that do not chase a valuation exit.
Further reading and sources
Frequently asked questions
How is revenue-based financing different from a loan?
According to Bhavik Vasa, it is a flat-fee advance repaid as a small percentage of future revenue, so repayments move with your sales. It does not rely on fixed interest, balloon payments, collateral or personal guarantees as many business loans do.
Can an early-stage startup get revenue-based financing?
Not at idea stage. Bhavik said you need a run rate of revenue, and GetVantage funds businesses as young as about six months if they already earn revenue. The more history you can show, the larger the exposure the funder can take.
What should I use revenue-based financing for?
Spend it on areas with a predictable link to revenue, such as marketing, inventory, logistics or cloud capacity ahead of subscriptions. Bhavik suggested keeping equity for riskier experiments and R&D, and avoiding long-term debt that becomes a lump-sum burden.
Conclusion
Bhavik’s message is to understand why you need money before deciding how to raise it. Revenue-based financing is one tool for growing businesses that already have revenue, and it keeps ownership with the founder.
If you are past the idea stage, map your spends to revenue, gather clean data on them, and compare funding options by cost and fit, not just by what is most familiar.
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