The strategic round comprised primary and secondary participation from HDFC Bank, Pravega Ventures and existing investor Accion Venture Lab
FinTech BizNews Service
Mumbai, February 7, 2024: Cashinvoice, India’s leading supply chain finance platform, closed $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 top 100 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 Cr, upscaling the MSME base to 10,000 from the current 3,000 by FY25.
Arun Poojari, Co-Founder and CEO, 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 in 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.”
Shrinivas Kasar, Co-founder of Cashinvoice added, “This strategic investment will enable extended financial inclusion for the missing middle by deploying innovative SCF technologies. It underlines our dedication to transform MSMEs’ cash flow and working capital management, creating a more streamlined and efficient supply chain finance landscape. With this round, we are poised to make a significant impact by expanding our reach to empower thousands of MSMEs linked to over 5,000 anchor corporations and targeting credit support of over $2.4 Billion by FY25”
Since its inception in Sept 2019 Cashinvoice has achieved breakeven by facilitating disbursement of over 15 lakh invoices, totalling more than INR 15,000 Crore by forging partnerships with leading 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.
Rahil Rangwala, Managing Partner of Accion Venture Lab, said: “Cashinvoice platform is making a meaningful difference by providing seamless and affordable credit access to the backbone of the Indian economy, our MSMEs. Since our first investment, we've seen incredible development in both partners and disbursement volumes, all of which has been accomplished in a sustainable manner. We are impressed with the team's execution capabilities and are excited to double down on this investment.”
Spokesperson from Pravega Ventures echoed this sentiment saying, "As Digital India becomes a reality, we are delighted to partner with Cashinvoice, a supply chain finance platform that plays a pivotal role in resolving critical issues catering to large corporates and their ecosystem of mid-size SMEs. The company has made significant strides in optimising cash flow and working capital management for businesses, which is a clear testament to the leadership team’s capabilities and we are excited to be a part of their journey.”
