With the Logitax acquisition, CashFlo is aiming to strengthen its accounts payable automation and supply chain financing platform
The Logitax acquisition is said to be critical for CashFlo to scale up and serve more mid-market and large enterprises
Following this acquisition, the combined entity is set to serve over 1,200 enterprises and over 300,000 SMEs
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B2B fintech startup CashFlo has acquired GST compliance platform Logitax for an undisclosed amount, aiming to strengthen its accounts payable automation and supply chain financing platform .
Founded in 2018 by Ankur Bhageria and Dushyant Agarwal, Mumbai-based CashFlo enables businesses to automate their payments and reconciliation process, along with vendor onboarding, and GST compliance. CashFlo also offers financing solutions such as cash discounting, vendor financing, PO financing as well as invoice discounting.
CashFlo claims its solutions help enterprises achieve cost savings and improve EBITDA margins by up to 5% annually.
The Logitax acquisition is said to be critical for CashFlo to scale up and serve more mid-market and large enterprises. The Logitax team, including its leadership, will join CashFlo to continue developing finance automation, as per the company.
Founded in 2017 by Aditya Kulkarni, Pune-based Logitax primarily offers tax compliance management solutions. Incidentally, Logitax offers services that overlap with CashFlo, such as GST compliance, E-Way billing, E-invoicing and vendor management.
Following the acquisition, the combined entity is set to serve over 1,200 enterprises and expand its SME network to over 300,000 companies. According to CashFlo, over INR 1,80,000 Cr (roughly $22 Bn) of invoices flow through the combined platform annually.
Ankur Bhageria, CEO and founder of CashFlo, commented, “Logitax’s mission to provide comprehensive GST compliance solutions resonates deeply with CashFlo’s commitment to revolutionising B2B Payments, and their expertise and offerings complement ours, making Logitax the ideal partner for us.”
CashFlo has raised $12.8 Mn till date with its latest round coming in September 2022, when it raised $8.7 Mn from General Catalyst and Elevation Capital.
A number of companies are active in the B2B finance and accounting automation space. CashFlo competes with the likes of Clear (formerly Cleartax), Finly, Open Bank, Zaggle, Volopay, Razorpay, Paymate, Enkash, PayU, among several others.
On the financing side, a host of digital lending companies such as Lendingkart, KredX, Incred, Indifi among others offer invoice discounting, vendor financing, PO financing and compete directly with CashFlo.
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