Credflow will be using the $2.1 Million seed fund to develop its technology around a platform and build new products & strengthen its capabilities in the technological world, also they will focus on expanding their customer base.
Credflow is Mumbai-based fintech startup, which offers cash flow management solutions for Indian small and medium enterprises.
Stellaris Venture Partners, Omidyar Network India and Flourish Ventures headed the seed round of financing.
According to Credflow, all the raised funds will be invested in developing its technological platform, building new products and focusing on expanding the customer base. After the development of the platform, they have decided to spend some funds on marketing too.
This Software-as-a-Service (SaaS) based platform is just a year old and their idea is to help SMEs through their cashflow based management platform, which will allow SMEs to view on pending amounts by customer, sending timely payment reminders, validating invoices and negotiating discounts for early payment, thus enabling these businesses to reduce their working capital cycles by 25-30%.
“Delayed collections is a major challenge that Indian SMEs face and capital stuck in receivables is a leading cause for financial stress. Indian SMEs, particularly traditional manufacturing and distribution businesses in the business-to-business (B2B) supply chain are still using offline processes to manage their receivables and payables. Much of fintech innovation in the past decade has been focused either on large enterprises while the mid-market B2B segment remains largely unaddressed,” Kunal Aggarwal, founder, Credflow.
Since its launch last May, Credflow has signed up more than 5,000 businesses processing invoices worth Rs70,000 crore.
“While the SME sector has begun digitizing and formalizing rapidly, cash flow management remains a chronic pain point. We believe that CredFlow’s focused solutions will significantly improve the financial health of SMEs and accelerate their growth by empowering SME business owners with cutting-edge digital tools and analytics to manage cash flows efficiently,” said Treasa Mathew, director, Omidyar Network India.
Credflow is now looking to build a full stack solution, including cash flow-based financing, treasury management and payments management to help SMEs optimize their cashflows and accelerate their growth.