Revenue-Based Financing Market Report 2026

The revenue-based financing market size has grown exponentially in recent years. It will grow from $9.77 billion in 2025 to $15.86 billion in 2026 at a compound annual growth rate (CAGR) of 62.2%. The growth in the historic period can be attributed to expansion of startup and SME ecosystems, limited access to traditional bank loans, increasing demand for non-dilutive funding, growth of subscription-based business models, rising use of digital lending platforms.

The revenue-based financing market size is expected to see exponential growth in the next few years. It will grow to $109.75 billion in 2030 at a compound annual growth rate (CAGR) of 62.2%. The growth in the forecast period can be attributed to increasing adoption of fintech-enabled funding solutions, rising focus on cash-flow-aligned financing, expansion of sector-specific financing offerings, growing use of ai-based underwriting models, increasing demand from high-growth SMEs. Major trends in the forecast period include increasing adoption of alternative financing models, rising demand for flexible repayment structures, growing use of data-driven credit assessment, expansion of online revenue-based financing platforms, enhanced focus on founder-friendly capital solutions.

The increasing number of startups is expected to drive growth in the revenue-based financing market going forward. Startups are newly established companies typically launched by one or more entrepreneurs aiming to meet perceived market demand by creating a viable product, service, or platform. These startups contribute to the revenue-based financing sector by offering innovative financial products and platforms that meet the needs of small businesses, providing accessible and flexible financing options to support their growth and enhance revenue streams. For example, a report from Startups.co.uk, a UK-based online resource and advisory platform, indicated in February 2024 that the number of new businesses in 2023 increased significantly by 19.5%, totaling 39,966 new establishments. This growth also represents a 6.5% rise compared to the previous year, 2022. Therefore, the rising number of startups is driving the revenue-based financing market.

Innovation to better cater to consumer needs is a key focus for major companies in the revenue-based financing market, with the introduction of hybrid financing as a notable development. Hybrid financing combines elements of both debt and equity financing. For instance, ARC Technologies Inc., a US-based company offering financing to startups, launched Advance Plus in January 2023. This innovative hybrid financing solution blurs the lines between traditional venture loans and revenue-based financing. ARC Advance Plus provides businesses with upfront funding within 48 hours, allowing entrepreneurs to convert future income into immediate capital for long-term growth strategies.

In October 2025, Allica Bank Limited, a UK-based bank, acquired Kriya for an undisclosed amount. Through this acquisition, Allica Bank aims to enhance and expand its SME lending and embedded finance capabilities while advancing its strategic goal of delivering $1.33 billion in SME working capital finance by 2028. Kriya Finance Limited is a UK-based fintech company that provides working capital solutions, invoice finance, SME loans, and embedded PayLater and payment products to small and medium-sized enterprises.

Major companies operating in the revenue-based financing market are Wayflyer, Capchase, Lighter Capital, Decathlon Capital, Timia Capital, Earnest Capital, Novel Capital, Liberis, Silvr, GetVantage, Flow Capital, Ritmo, Arc Capital, Feenix Venture Partners, Pipe, Clearco, Uncapped, Founderpath, Settle, Outfund, Parafin, Levenue.

North America was the largest region in the revenue-based financing market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the revenue-based financing market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the revenue-based financing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The revenue-based financing market includes revenues earned by entities through funding agreements, revenue reporting, and repayment periods. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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