Cashinvoice secures $3.4m in Series A round led by HDFC Bank

By Gloria Mathias

Cashinvoice, India’s supply chain finance platform, has raised $3.4 million as a part of its strategic Series A round from institutional investors comprising Pravega Ventures, HDFC Bank, and existing investor Accion Venture Lab.

The latest round of capital infusion will strengthen the existing business and facilitate the launch of new products across the supply chain finance (SCF) ecosystem. The current financing comes on the heels of a $1 million pre-series A round from Accion Venture Lab in October 2021.

Cashinvoice, through its digital invoice discounting marketplace, delivers customised SCF solutions to anchor companies, including some of India’s corporates and their MSME partners (both vendors and distributors).

The company’s digital platform integrates with anchor companies and leverages validated invoices and risk assessment. It also enables digital loan processing against invoices for lenders and aims to take its discounting throughput to Rs. 20,000 crore, upscaling the MSME base to 10,000 from the current 3,000 by FY25.

Arun Poojari, Co-Founder and CEO of Cashinvoice said, “India’s digital public infrastructure prowess has allowed lenders multiple data points to assess credit risk beyond the traditional asset-based credit mechanism. Supply chain finance focuses on funding specific transactions and analyses the vintage and velocity of the buyer-seller relationship. It helps MSMEs regularise their cash flows and bring in predictability, which enables them to grow their business and contributes to job creation. With this round, Cashinvoice will continue to build on its capabilities riding on India’s DPI and the sustained growth in trade activities, which complements the growing GST collections.”

Since its inception in September 2019, Cashinvoice has achieved breakeven by facilitating the disbursement of over 15 lakh invoices, totalling more than INR 15,000 crore, by forging partnerships with Indian corporates such as Tata Motors, Bata, Bajaj Electricals, Oppo, Voltas, One Plus, Patanjali, Kalyan Jewellers, Paragon, and more. The company has more than 3,000 MSMEs on its platform and has already made waves in the supply chain finance sector by providing businesses with digital solutions that optimise their cash flow and working capital management.