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SAIF Partners leads $3.3 mn funding in invoice financier CashFlo

Ankur Bhageria

Ankur Bhageria, Founder, CashFlo

Working capital solutions provider CashFlo has raised $3.3 million in series A funding led by venture capital firm SAIF Partners, and a few angel investors including former BCG senior partner Ashish Iyer and Arpan Sheth,  Partner at Bain & Co.

The Mumbai-based bill discounting company plans to utilise the funds to expand its operations and enhance its platform in India, the company said in a statement. Currently, CashFlo is present in top 7 metro cities in India and caters to SMEs across 30+ cities. The company would also use part of the funds for its hiring activities. It plans to increase its headcount to 75 employees in the next 24 months.

CashFlo was founded by ex-BCG (Boston Consulting Group) executives, Ankur Bhageria and Dushyant Agarwal, in late 2017 to solve the day-to-day cash flow problems faced by small businesses. The company aims to target the $100 billion untapped categories in the SME lending market, which is currently operating traditionally.

Ankur Bhageria, Co-Founder & CEO, CashFlo said, “We aim to democratise access to credit in the SME space and to tap into new sources of liquidity for the credit economy while building a holistic ecosystem for the businesses on our platform. With a mission to unlock $100 billion of trapped working capital in the economy, we are creating India’s largest digital marketplace for invoice discounting.”
Unlike traditional solutions that typically leverage a single source of funding, CashFlo takes a holistic approach. Its integrated marketplace approach gives buyers the flexibility to decide their funding mix across multiple sources while funding the sellers. This unique multi-funder model with stock-exchange like dynamic pricing ensures coverage of the entire supply chain and enables even the smallest SME to access funds within a click on their phones.
To implement this, CashFlo has partnerships with anchor corporates who roll out supply-chain financing program for their entire base of vendors and dealer/distributors in the MSME and non-MSME segment.  The company is already working with some leading corporates such as Tata Group, Aditya Birla Group, Bajaj Group and others across auto, retail, pharma, capital goods, textiles, logistics, and services sectors. It has garnered an order book of over INR 10 billion from its existing contracts in just two years of operations.

Mridul Arora, Managing Director, SAIF Partners said, “We are delighted to partner with CashFlo which is riding on the massive tailwind of supply chains getting more organised and consolidated; with eventual unbundling of credit. We, at SAIF Partners, have a strong belief in the founding team’s vision of creating a multi-product, highly liquid and value-accretive credit platform. ”

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