Mumbai-based fintech startup EnKash is set to raise a fresh round of investment worth $25 Mn from new and existing investors. The startup is in talks with major foreign venture capital and PE firms for the new round of investment.
As per sources aware of the development, the new round of investment will be led by a PE firm in participation with a US-based venture firm. The new round of funding will help the startup’s valuation soar by 12X-14X and touch close to $100 Mn.
Sources requesting anonymity said that a few international card issuance infra players have also shown interest in EnKash and want to build their B2C strategy with the Indian market. Existing investors Mayfield and Axilor Ventures will further increase their stakes in the company with this round of investment.
Detailed questionnaire sent to the company elicit no response while publishing the story.
The startup intends to utilise the fresh capital to further innovate its range of products in the Corporate Card & Payments’ space with a special focus on scaling up its ‘Corporate Card Program’ that was launched in early 2020.
“The startup also plans to pump funds towards business development, marketing, data sciences, new product launches, and hiring talent across product development and performance marketing,” sources informed.
Post the investment, EnKash will also plan its expansion into new geographies. The startup in 2019 had raised its Series A round worth $3 Mn from Mayfield and Axilor Ventures.
Founded by three former Citrus Pay (now acquired by PayU) employees Yadvendra Tyagi, Hemant Vishnoi, and Naveen Bindal in 2018, EnKash is a corporate card provider and a payments platform. The startup claims to offer a single B2B platform for all business expenses, payables and collections.
The startup’s spend management platform comes with a DIY Card Program Management, DIY Spend Controls, DIY Expense Management, and AP/AR Management.
The startup, at present, boasts of having onboarded +70K businesses on its platform. As per its website, the it has over 50K users. It claims to have disbursed more than 50K corporate cards. The startup counts ICICI Bank, HDFC Bank, SBI Card, HSBC, among others as its partners.
EnKash competes against the likes of Karbon Card, Kodo, RazorpayX Corporate Cards among others. Last month, Karbon Card bagged $12 Mn as part of its pre-Series A round from US-based fintech unicorn Ramp, Rainfall Ventures, Roka Works, among others.
Earlier this year Kodo mopped $8.75 Mn as a part of its seed round from major US-based fintech startup Brex, Goat Capital, Pioneer Fund among others.
The ongoing pandemic has even compelled people to adopt digital payments to prevent the spread of the virus. This has helped the fintech startups in the country to see their user base grow, thus making investors go bullish on them. As per Inc42 report, Indian fintech startups have raised $2.7 Bn across 79 deals in Q3 2021.