Fintech startup EnKash has raised $3 Mn Series A funding from Mayfield India and Axilor Ventures. The investment is expected to boost the growth of the company, by strengthening existing technologies and the leadership team. Managing partner of Mayfield, Vikram Godse will also join EnKash’s board as part of the investment deal.
Enkash is a B2B payments management and automation platform. The Mumbai-based company was cofounded by Yadvendra Tyagi, Hemant Vishnoi and Naveen Bindal in 2017. Enkash’s software and platform can be used by businesses to send and accept online payments, initiate financial discounts, and bring cost efficiencies.
Further, businesses can also leverage EnKash to manage their purchase orders and invoices, enable and track payments to suppliers or from buyers. The integrated platform connects corporations, vendors & credit providers.
The platform helps buyers and suppliers improve their cash flow management by getting advance payments or quick financing options on their invoices when they offer terms to their customers. The platform also provides analysis and reconciliations to the businesses.
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EnKash has partnered with banks such as Kotak Mahindra, ICICI Bank and is said to be in discussions with other financial institutions too.
Over the last three years, Mayfield India has also invested in other fintech companies such as LendingKart, Upwards Fintech and M1 Exchange.
“EnKash’s core tech platform solves issues around the dearth of working capital through a payment’s mechanism, which we believe, will create tremendous value for the supplier ecosystem in India,” Godse said in a statement.
Fintech Market Awaits The Sandbox
According to EnKash’s analysis, the B2B market records an annual transaction value of more than $1 Tn. A report by Credit Suisse has predicted that India’s digital payments industry, which is currently worth around $200 Bn, is expected to grow five-fold to reach $1 Tn by 2023.
Indian fintech sector has been going through a transformation phase with the growing internet penetration and the wide adoption of UPI and other digital payment options. One of the biggest hurdles for fintech companies has always been getting regulatory clearance. A lot of the time despite adequate infrastructure to penetrate into the rural market, fintech companies have to delay products due to regulatory hurdles. That could change soon, and give a massive boost to the fintech ecosystem.
Earlier this month, the RBI had released a draft ‘Enabling Framework for Regulatory Sandbox’ which will enable fintech startups to test within a regulatory sandbox. Initially, RBI will shortlist 10-12 fintech startups for its 26-week long regulatory sandbox.
Also, the finance ministry was reported to have worked on a fintech regulations report. The report is expected to release post the Lok Sabha Elections.