Supply Chain Fintech Startup QuiD Cash Nets $4.5 Mn To Boost Tech Stack

Bengaluru-based supply chain fintech startup QuiD Cash has raised $4.5 Mn (around INR 38.23 Cr) in a Pre-Series A funding round from a host of angel investors, including Piyush Jain, Director of Shrem Group, and existing backer MINTCAP.

The startup plans to deploy the fresh capital for technology enhancement and business growth. 

On the back of the fundraise, the B2B company has also rolled out QuiD Capital, an NBFC designed to facilitate anchor-led invoice financing.

Founded by Subhash Gupta and Vikram AG, QuiD Cash provides tech-driven financial solutions through its B2B supply chain platform. The startup currently claims to serve around 8,000 registered users and works with more than 20 large anchors across FMCG, automotive, pharmaceuticals and agri-businesses, with each anchor processing transactions worth INR 50- INR 250 Cr monthly.

“With the strong demand coming from the market, funds will be deployed towards further investment in technology and growth. QuiD’s hero product ‘Pay-in’ solution suite for suppliers includes Pay Now and Pay Later at invoice level with automated reconciliation and reporting capabilities, and will be further enhanced with supplier ERP Integration,” Gupta told Inc42.

QuiD Cash maintains a default rate of around 1.5% on its loans through its proprietary QuiD Score underwriting model. “Whenever a retailer gets onboarded or whenever the supplier shares the retailer’s data to us, the algorithm calculates the risk score for each of these retailers,” Vikram said. 

Operating with a team of 40 employees, the startup plans to expand to 50 people next year. It aims to onboard 5 lakh retailers in the next two years. Earlier in 2024, QuiD had raised INR 5 Cr in pre-seed funding led by Mint Cap Enterprises and Stone Park Capital.

According to a 2023 RBI report referenced by the company, the supply chain financing opportunity in India is estimated at INR 20 Lakh Cr. The sector has seen growing investor interest recently, with several NBFCs raising significant capital.

Earlier this month, Bengaluru-based Avanti Finance secured $14.2 Mn in Series B extension funding from Dia Vikas Capital, while in June 2024, Mumbai-based Arthan Finance raised INR 50 Cr in Series B funding led by Incofin India Progress Fund. Around the same time, Jupiter’s NBFC arm Amica Finance raised INR 20 Cr from Peak XV Partners, Matrix Partners India and others.

According to Inc42’s ‘State of Indian Fintech Report Q4 2023’, the lending tech opportunity in India is expected to reach $1.3 Tn by 2030.

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