Bonside, which publicly launched in June 2023 as the first brick-and-mortar fintech, announces the initial close of their Flagship Fund to power business growth across the US. This fund will further shift the growth capital landscape for multi-unit operators while providing monthly payouts to investors.

Bonside’s Flagship Fund is led by Kimco, a real estate investment trust, with participation from various family offices and individuals. The initial close of over $15M of committed capital is a follow up to Premiere Fund II which was announced in October 2023. The Flagship Fund further establishes the Repeatable Revenue Agreement (RRA), a net-new asset class, as an emerging authority in brick-and-mortar investing. To date, Bonside has funded over 25 deals, has over $10M under management, and represents a diverse portfolio of best-in-class businesses.

The Bonside RRA allows private and institutional investors to back multi-unit service brands with non-dilutive capital. Investments are grounded in an established multiple and a clear repayment horizon. Demand for the sector has surged, especially as service businesses have become a foundational part of the retail mix.

Flagship Fund is pacing to be a 5x+ multiple of Premiere Fund II. It continues Bonside’s mission to provide scalable capital to the brick-and-mortar industry while serving both business owners and investors. Over the course of deploying Premiere II, the portfolio has consistently outperformed investor expectations, leading to strong investor retention.

Bonside Founder, Neha Govindraj said, “It’s a privilege to back sound, credit-worthy brick-and-mortar businesses and to bring both institutional and private investors into the mix. Bonside is a unique opportunity to realize the largely untapped potential of multi-unit retail, a rising sector. Being at the forefront of this movement, we have seen incredible demand for the strength, longevity, and stickiness of the category.

With the RRA, the rhythm of monthly payouts instills an appreciation for the month-over-month performance across the portfolio. This consistency, alongside the ability to see, touch, feel and experience the sector, adds a layer of connection. Ultimately, the RRA creates a new class of investors driven to back these businesses because they are brick-and-mortars.”

Bonside is based in New York City.