NEW DELHI: Cash flow management solutions startup Credflow has raised USD 2.1 million (around Rs 15.2 crore) in a seed funding round led by Stellaris Venture Partners, Omidyar Network India and Flourish Ventures.
Small business-focused Credflow will be investing the fund to develop its platform, strengthen technology capabilities, build new products and expand the customer base, it said on Wednesday, adding that angel investor Nitin Gupta, who founded Uni.money, also participated in the round.
The SaaS-based platform helps small businesses manage their finances by providing a dashboard of pending amounts by customers, sending timely payment reminders, validating invoices and negotiating discounts for early payments, thus enabling them to reduce their working capital cycles by 25-30 per cent.
Since its launch in May 2020, over 5,000 businesses have used Credflow to process and sync invoices worth over Rs 70,000 crore, it claimed.
The delayed collection is a major challenge that small businesses face and capital stuck in receivables is a leading cause for financial stress, its founder Kunal Aggarwal said, adding for the past two decades, average debtor days for small businesses have consistently exceeded 90 days.
Aggarwal and his team are passionate about solving for the critical needs of small business owners, and we are delighted to partner them in this journey, said Treasa Mathew, director at Omidyar Network India.
Omidyar Network India invests in entrepreneurs who help create a meaningful life for the hundreds of millions of the poor.
Stellaris Venture Partners is an early-stage VC that invests in the seed and Series A rounds in technology companies in online services, healthcare, education, retail, logistics, SaaS and tech-enabled financial services.
Flourish Ventures backs enterprises that help advance financial health for individuals and small businesses.
Source: Press Trust of India