BENGALURU: The Mumbai-based fintech startup Credflow, which offers cash flow management services for Indian small and medium scale businesses. It has raised around $2.1 million that is around INR 15.2 crores as part of its seed round of financing led by Stellaris Venture Partners, Flourish Ventures, and Omidyar Network India.
As per the firm, it will be investing the capital to further develop its platform. Also to strengthen its tech capabilities and build new and better products, with a focus on expanding its customer base.
Moreover, the firm is also looking forward to extending its reach and workforce across technology, products, and marketing strategies for better reach and results.
The Credflow is a young startup, which is only 1 year old and already marking its footprints with an interesting fundraiser in the seed round. The firm helps businesses to view its pending amounts by the customer, sending timely reminders for payment. Hence, enabling them to reduce their working capital cycles by 25 to 30 percent.
Meanwhile, the founder of Credflow Kunal Aggarwal said- “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”.
Since its launch in May 2020, Credflow has signed up more than 5,000 businesses processing invoices worth INR 70,000 crore.
On the other hand to highlight the whole scenario, Omidyar Network India director Treasa Mathew, said- “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”.
The firm is now looking to build a full-stack solution, involving cash-flow-based financing, payments management solutions, and treasury management to help small-scale businesses to optimize their funds and accelerate their expansion.
Lastly, one of the investors Stellaris Venture Partners Ritesh Bangalni said- “Credflow’s payment dashboard commands the attention of the business owner and becomes the primary daily management information system for the business. In the long run, this will help
