Your 2026 D2C Calendar mapped day by day - Powered by real data from India’s biggest D2C shopping network
Your 2026 D2C Calendar mapped day by day - Powered by real data from India’s biggest D2C shopping network
Your 2026 D2C Calendar mapped day by day - Powered by real data from India’s biggest D2C shopping network
Your 2026 D2C Calendar mapped day by day - Powered by real data from India’s biggest D2C shopping network
Growth Financing
6 Long Term Funding Options For eCommerce Companies In India
25 Mar 2026
08 Min Read
Suhag spearheads D2C growth strategies at GoKwik, focusing on e-commerce optimisation, conversion funnels, and sales enablement. Based in Bengaluru and an MICA alumnus, he excels in crafting GTM playbooks and marketing campaigns tailored for D2C brands.
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Table of Contents
The eCommerce business in India has grown by leaps and bounds in the last couple of years. While the pandemic has facilitated online shopping, the availability of the internet and smartphones, even in rural India, has contributed significantly to the growth of this industry. As a reportsuggests, the eCommerce industry in India is expected to grow at a CAGR of 27% to reach USD 163 billion by 2026. However, as the industry is getting bigger, starting an eCommerce business in India is becoming tougher with every passing day. That’s because there’s fierce competition between brands, steep loan interest, plus investors are taking more time to scrutinize the startup business model before finalizing a deal. Additionally, there are high-interest rates and capital caps by angel investors leaving no or only a handful of long term funding options for eCommerce brands to turn to.
Without a traditional lending system and no option to go bootstrapped, is it impossible to start an eCommerce business in India. However, truth be told, while the eCommerce industry is growing, so are its supporting sectors. Come 2023, there are many ways in which eRetail brands can navigate financing and liabilities or what they owe to investing parties, and that’s where growth financing comes in.
Recap: What Is Capital?
Capital in business is the financial assets you need to start and sustain business activities. Ideally, there are three types of capitals.
- Seed capital – also known as seed funding that helps to kickstart a business
- Working capital – is the fund that helps you to continue day-to-day operations
- Growth capital – also known as growth financing helps a business to grow and expand
6 long Term Funding Options For eCommerce Companies In India
While a loan can help you start your eCommerce brand and a business credit card can help you run your day-to-day operations until you gain stability, you will likely need more to build a sustainable eCommerce company in the long run.
Loans and credit cards are debt financing. However, if you want to avoid debt, here are some other long-term funding options.
1. Equity Investments
As the term suggests, equity investment is raising funds in exchange for some equity in your company. You don’t do a direct repayment here, but it gives away a certain percentage of your company share.
An equity investor can be anyone — venture funding firms, angel investors, or private parties. Equity investments are common during the seed or pre-seed rounds or during the growth of the company.
One key aspect to remember while opting for this long term funding option is that you will be diluting shares if you opt for equity investment. So, be mindful while going for equity investments. Too much equity investment can dilute your shares, and you may lose control of the company.
2. Programmatic Funding
Programmatic funding differs from equity funding in that it doesn’t dilute your shares, although the funding does come from a venture capital firm.
It’s more like a hybrid line of credit where you withdraw funds when you need them. In exchange, you pay a flat fee — no interest or company shares to give away.
3. Revenue-based Financing
While equity funding can help you kickstart your business, programmatic funding is useful for a product launch or any one-time expansion activity.
Revenue-based financing kicks in when you are expanding your eCommerce business. This happens when your revenue starts rolling in, and you can show significant revenue growth for a long period. While banks and traditional financial institutes will look for your credit score, alternate lenders will focus more on your revenues to close a deal.
The only drawback of this type of long term funding option is that there’s no fixed repayment amount. Rather it increases as the company’s revenue increases. Meaning, if your revenue increases 2X then your repayment amount also becomes, hypothetically, 10% of 2X and not the principal revenue.
4. Invoice/purchase Order Financing (Or Factoring)
In this type of long term funding, you have to produce an invoice/purchase order from customers that guarantees that you will have funds in the future to repay the loan. It’s expensive as factors take a percentage of the outstanding invoices as their fee.
Remember, the percentage of the fee you pay depends on the risk associated — the higher the risk, the higher the pay is. Also, you will be taking money for a future cash flow, so ensure you have strong accounts and bookkeeping.
5. Cash Float (Merchant Cash Advances)
A merchant cash advance is a small amount of loan based on the future revenue of the eCommerce business. It gives the business quick access to cash compared to traditional bank loans that take time to arrive.
This financing option provides direct and streamlined cash access to eCommerce brands that accept card payments from their customers. You can repay the loans as you receive your sale, along with a small fee. However, you are eligible for this type of financing only when you receive a significant payment through card transactions.
6. Growth Financing By GoKwik
A new mode of financing for eCommerce brands is growth financing. It’s better than a traditional lending system and even those options that eat away your revenue because,
- There’s no equity pleading
- The lending firm is not involved in the business operations
- Offers a higher loan amount of about INR 5 crores which is more than most other long term funding options offer
- A fixed repayment system ensuring no financial burden
- Longer loan tenure ensuring better cash flow
- No hidden costs, and instant and easy disbursal process
If you’re an eCommerce brand that’s looking for a burden-free financial , you can access this alternative long term funding option to upscale your business.
Here’s what GoKwik’s growth financing model looks like.
Here’s what GoKwik’s growth financing model looks like.
- Up to INR 5 crore of capital with an APR as decided between the two parties
- Loan tenure of up to 12 months
- Hassle-free loan disbursement
- No security deposit and collateral pleading
- Fixed EMI or repayment system
- No hidden costs or upfront charges
Documentation requirement:
- Financial statements, including cash flow statements, balance sheets, income statements
- Revenue information like historical revenue, future projections, and revenue growth potentials
- Tax returns, including bank statements
- Outstanding loan documents with details about the lender, loan tenure, loan date, repayment terms, etc.
- KYC documents like PAN cards, canceled cheques, GST certificates, Aadhar cards, etc.
How Can GoKwik Help?
As traditional lending methods are becoming increasingly difficult in India, growth financing is becoming the newest method of capital raising among eCommerce businesses. That’s primarily because it focuses on the company’s growth.
GoKwik commits to this ideology, making it easy for eCommerce brands in India to borrow capital for their growth. You can access quick funds since there’s no collateral requirement, equity, or upfront fee.
Plus, GoKwik adheres to all the compliance and regulations guidelines and offers a fixed repayment cycle and a good loan tenure. It’s becoming a popular choice as a long term funding option among eCommerce brands. If you want to grow your online business without losing control over it, opt for growth financing by GoKwik.
Book a call today to explore and learn more about the opportunity.
Frequently Asked Question
AUTHOR
Suhag Vamja
Head of Product Marketing @ GoKwik
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