The fintech startup will use the incoming funding to make investments in its tech stack and product range
The startup had raised $1.4 Mn (INR 11.45 Cr) in a seed round in March 2022 from 3one4 Capital
Growfin’s automation, collaboration tools and collection tracking capabilities help improve efficiency in collecting payments
Chennai and San Francisco-based accounts receivable (AR) automation startup Growfin has raised a $7.5 Mn (INR 57.26 Cr) Series A funding round. The round was led by SWC Global, with participation from existing investors 3one4 Capital and angel investors.
The startup had raised $1.4 Mn (INR 11.45 Cr) in a seed round in March 2022 from 3one4 Capital, taking the total funding raised to $8.9 Mn (INR 72.93 Cr).
Growfin will use the incoming funding to make investments in its tech stack and product range. It said it would expand its offering from a finance CRM to an all-in-one integrated cash solution, allowing B2B enterprises to streamline and manage cash flow.
“This evolution will help businesses optimize their working capital and drive growth,” Growfin added.
Founded in 2021 by Aravind Gopalan and Raja Jayaram, Growfin provides real-time visibility and predictability in cash flow. Its AR solution allows companies to automate their accounts receivable process and predict their revenue based on it. Growfin counts Leadsquared, Mindtickle, Hubilo and Darwinbox, among others, as its customers.
Growfin’s automation, collaboration tools and collection tracking capabilities help finance, sales and customer success teams connect in one place to handle customer relationships during the payment process and improve efficiency in collecting payments.
Aravind Gopalan, cofounder and CEO at Growfin, said, “Growfin enables anyone concerned with invoice payment, including the customer, to collaborate in one place where they all see the same information and help solve payment issues faster.”
Gopalan added that the major concerns of CFOs were the accuracy of the data informing their cash flow positions and the increased scrutiny from their boards and investors due to the current market conditions. By automating the processes, Growfin was solving these problems, Gopalan added.
Tuck Lye Koh, the founding partner at SWC Global, added, “Growfin’s AI-powered system is poised to disrupt how businesses collect their invoice payments by sitting on top of ERP systems like Netsuite and Microsoft dynamics that dominate the industry. Globally they have over 100,000 customers and now finance teams beholden to these systems will be able to plug in Growfin to get a deeper and wider eye into their financial well-being with real-time cash-flow efficiency and forecasting.”
Amid a prolonged funding winter, which saw Indian startups raise only about $693 Mn in February, fintech has remained an investor favourite. Last month, fintech SaaS startup Mintoak raised $20 Mn in its Series A funding round.
According to a survey conducted by Inc42 with 50+ active investors in Indian startups last year, fintech was among the investor favourite segments, with 26% of the investors being bullish for fintech in FY24.
