Cashinvoice, a Mumbai, India-based provider of a supply chain finance platform, raised $3.4M in Series A funding.
Backers included Pravega Ventures, HDFC Bank and existing investor Accion Venture Lab.
The company intends to use the funds to expand operations to enhance presence in existing and newer markets and develop new products.
Led by CEO Arun Poojari, and Shrinivas Kasar, Co-founder, 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). Its digital platform integrates with anchor companies and leverages validated invoices and risk assessment. The company 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.
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 signing partnerships with Indian corporates such as Tata Motors, Bata, Bajaj Electricals, Oppo, Voltas, One Plus, Patanjali, Kalyan Jewellers, Paragon and more.
Commenting on the news, Arun Poojari 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.”
FinSMEs
07/02/2024