FinTech FreePay automates AR of USD 10 bn for Goldmedal Electricals

By Leandra Monteiro

In order to tackle delays in invoice collections and in offering real time discounts to its 6,000 dealer across India, Goldmedal Electricals has automated more than 70% of its Account Receivables (AR) through B2B FinTech Global PayEX’s FreePay – an Electronic Invoice Presentment and Payment (EIPP) solution. This will result into unlocking the potential of working capital worth USD 10 billion 9 days earlier.

Tightened working capital has been a serious concern for B2B players, especially during the pandemic. Also, the expanding AR numbers due to the usage of traditional methods of invoice collection via Post Dated Cheques (PDCs) and manual reconciliation of each payment on company’s enterprise resource planning (ERP) software has been another concern.

With the adoption of the Artificial Intelligence (AI) powered cloud-based Software-as-a-Service (SaaS) solution, Goldmedal Electricals has witnessed faster online collection, 2X faster reconciliation, a 9-day reduction in Daily Sales Outstanding. This has altogether boosted working capital efficiency and increased visibility on company cash flows by 99%.

Global PayEX Chief Revenue Officer Narayan ‘Naru’ Ramamoorthy said, “Traditional methods and manual processes of AR continues to lock up billions of dollars of working capital across the globe. Our technology unlocks this value to empower businesses in cash flow planning and deployment while also creating value for their dealers by having better access to digital payments and channel finance. We are proud to partner with Goldmedal Electricals in its journey of digital transformation and working capital optimisation.”

Goldmedal Electricals Director Kishan Jain said, “Around five years back, Goldmedal started on this path to become a digital organization. We started investing majorly in technology to drive efficiencies and productivity in various aspects of our functioning and are thrilled by the results. Integrating Global PayEX’s FreePay solution into our systems has been an important part of this initiative and we are delighted to share that we have noticed a significant improvement in our revenue collections along with gaining key insights that have helped shape our business. We are excited about this initiative and look forward to working with Global PayEX on this transformational journey.”

For just above two years, dealers and distributors of the electrical brand have used the EIPP solution to make highly secure digital payments. In addition, Global PayEX has provided Goldmedal Electricals with a real time dashboard that tracks the payments and status of invoices received, which helps in reconciling the payment against the invoice into its ERP.

In addition to automating AR, Goldmedal Electricals through this platform offers multi-slab discounts, product and season incentives by region to its dealers and distributors, most of whom are Micro, Small and Medium Enterprises (MSMEs).