The search for investment options that beats inflation has driven retail investors beyond traditional options like fixed deposits. This shift has accelerated the rise of alternative investments in India- invoice discounting being a popular investment option among them. Platforms facilitating this are no longer a rarity. However, a unique platform called Better nvest has emerged that applies this financial mechanism to an unconventional asset class: the media and entertainment industry.
In this Better Invest review, we cover everything you need to know about the platform. We will look at what Better Invest is, how it works, whether it is safe to invest in, and some BetterInvest alternatives you can consider.
What Is Better Invest?
Better Invest is a Chennai-based platform that focuses on a fairly specific niche within alternative fixed income- invoice discounting solutions for the media and entertainment industry. Instead of funding random businesses, BetterInvest connects investors with content producers , production houses, creators, YouTube channels, etc. who need short-term working capital.
These content producers already have contracts in place with OTT players like Netflix, Amazon Prime, Zee5, SonyLIV, Hotstar, or regular TV channels. However, the payments from these buyers usually come in months later. Better Invest lets producers discount these confirmed receivables (invoices) and get cash upfront, while investors fund the deal and earn a return once the buyer eventually pays- typically within 3 to 18 months.
The platform claims returns of up to 17.5% per annum for investors, with a minimum investment of Rs. 1,00,000.
This sounds attractive if you are looking to diversify beyond the usual mix of stocks, mutual funds, and fixed deposits. However, as with any invoice discounting product, it is important to understand how the model actually works and where the risks lie — which we’ll get into below.
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How Does Better Invest Work?
The process on BetterInvest is fairly straightforward and broadly follows these steps
- Creators (production houses, musicians, etc.) sells OTT, satellite, or music rights, with the buyer (platforms like Netflix, Prime, Hotstar, etc.) committing to pay within 1 to 18 months
- Better Invest sources these invoices at a discounted price and offers them to investors on its platform. The creators receive the funds typically within 5 days.
- Once the buyer pays, the investors receive the principal amount along with accrued interest, typically within 3 to 18 months.
This creates win-win for all and all the creators receive funds fairly quickly without having to wait for payments during the entire duration of up to 18 months & investors receive interest of up to 17.5% which is typically higher than that offered by regular investment products.
Pros & Cons
Pros
- Attractive claimed returns of up to 17.5% per annum
- Minimum investment of Rs. 1,00,000
- Returns tied to a pre-signed contract & not on how the content does commercially on the platform
- Funds routed through an escrow account with legal safeguards in place
- Unique, niche exposure to the media and entertainment industry
Cons
- No fixed tenure — repayment depends on when the buyer pays, making it hard to predict exact dates and plan cash flows
- Illiquid — no way to exit before the deal is settled
- Not SEBI or RBI regulated
- Each deal is a concentrated bet on a single producer and buyer, not a diversified pool
Is Better Invest Safe or Not?
This is probably the most important question in any Better Invest review, so let’s address it directly. Better Invest, like most invoice discounting platforms in India, is not a SEBI-registered or RBI-regulated entity directly, so it doesn’t carry the same protection you get with products like mutual funds.
Invoice discounting, as a product category, inherently carries 3 types of risks- credit risk (the buyer or production house failing to pay as promised), concentration risk (each deal is usually tied to a single producer and a single buyer rather than a diversified pool), and liquidity risk (your money stays locked in until the invoice is settled, with no fixed tenure or early exit option).
At the same time, Better Invest has been operational for close to 4 years now and claims to have listed more than 1197 opportunities on its platform across 114 production houses onboarded & 821 Crores of funding.
Better Invest Alternatives
If you like the idea of invoice discounting as an alternative fixed-income investing product but looking for more platforms except Better Invest, following are some options to consider.
Altgraaf: One of the leading platforms for invoice discounting in India. Has invoices spread across multiple internal categories like Alt Blu, Alt Armour, Alt Wings, etc. with many deals offering trade credit assurance & bank guarantees for repayments.
Ultra: Formerly known as Tap Invest. Offers alternative investment products like asset leasing as well apart from invoice discounting & the standard- digital gold, digital silver, FDs, etc.
Amplio: Formerly known as Tyke. Another invoice discounting platform which provides IRR of upto 13%.
Conclusion
BetterInvest offers a unique & interesting alternative income product- invoice discounting focused specifically on the media and entertainment industry. The idea of earning returns backed by confirmed contracts with OTT platforms and TV networks, rather than the commercial success of the content itself, is a genuinely interesting pitch. The returns being advertised of upto 17.5% are lucrative & their track record seems pretty decent.
However, as with any alternative investment, do your own research, read the fine print on each deal, and only invest money you can afford to lock in or potentially lose. The repayment tenures are not fixed which might impact your cashflow predictability. Also, invoice discounting, as a category itself carries multiple risks which are already expanded in previous sections.
If invoice discounting is something you want exposure to, BetterInvest is one of the platforms you should consider- just make sure to size your allocation sensibly. Also consider all risks before taking an investment decision.
