Cashinvoice Bags $3.4 Mn To Aid New Business In Supply Chain Finance

Supply chain financing platform Cashinvoice has raised $3.4 Mn (INR 28.2 Cr) in a Series A funding round co-led by Pravega Ventures, HDFC Bank and existing investor Accion Venture Lab.

The startup will use the fresh capital to scale up existing business and support the new product rollout in the supply chain finance ecosystem. 

Arun Poojari, cofounder and CEO, Cashinvoice said, “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.”

“With this round, we are poised to make a significant impact by expanding our reach to empower thousands of MSMEs linked to over 5,000 anchor corporations and targeting credit support of over $2.4 Bn by FY25,” said cofounder Shrinivas Kasar. 

The company has achieved breakeven by facilitating disbursement of over 15 Lakh invoices since September 2019, totalling more than INR 15,000 Cr, and targets $2.4 Bn loan disbursals to MSMEs by FY25.

The Mumbai-headquartered startup, partners with 25 banks and a network of supply chain giants or anchor firms such as Tata Motors, Voltas and Britannia.

Cashinvoice, via its digital invoice discounting marketplace, provides tailored SCF solutions to anchor companies, including some of India’s top 100 corporates and their MSME partners (vendors and distributors). The company’s digital platform integrates with anchor companies, utilising validated invoices and risk assessment. It also enables digital loan processing against invoices for lenders, aiming to increase its discounting throughput to INR 20,000 Cr, expanding the MSME base to 10,000 from the current 3,000 by FY25.

Founded in 2018, the company has a network of 100,000 vendors, with 5,000 actively borrowing MSMEs. Its total invoice financing throughput stands at around INR 17,000 Cr.

The outlook for supply chain financing is promising for small businesses, with technological advancements like blockchain, data analytics, and digital platforms poised to revolutionise the sector. These technologies bring heightened transparency, improved risk assessment, and enhanced efficiency to supply chain financing processes. Market research predicts a 12.5% CAGR for the global supply chain finance market, offering small businesses more accessible and effective financial solutions.