Supply chain finance startup CashFlo raises $8.7 million in funding led by General Catalyst

The fundraise saw participation from existing investor Elevation Capital. Prominent angels such as Jupiter’s Jitendra Gupta; Pine Labs’ Amrish Rau, Uni’s Nitin Gupta, and Atrium Angels also participated.

Previously, Elevation had invested in CashFlo’s initial fundraising in 2019.

Founded in 2018, CashFlo helps corporates and businesses automate their core finance processes and manage their cash flows better. The startup also operates an invoice discounting marketplace helping small and medium enterprises (SMEs) receive working capital against their unpaid invoices.

“With this funding, we will double down on our flagship proposition (of invoice discounting) and take it to the larger market. We will also invest in a broader suite of automation products for SMEs and corporates alike,” Ankur Bhageria, cofounder and chief executive officer (CEO) of CashFlo, told ET.

The startup allows corporates to use their treasury for early payments to their suppliers and earn interest in the process. It also offers SMEs and corporate partners finance automation tools, including reconciliation and GST filing.

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Bhageria added CashFlo discounted Rs 1,250 crore worth of invoices last month. However, suppliers provide loans to 35%-60% of these invoices, every month.

“The pandemic and current macro environment are constant reminders that cash and liquidity are key indicators of business health. We have seen an acceleration in the adoption of B2B payments solutions as businesses try to cope with volatility, and believe innovative players like CashFlo have a large opportunity,” said Alex Tran, managing director of General Catalyst.

The company claims to have a network of 200,000 SMEs and 60 corporates, including

, , and Arvind Textiles, among others.

“We are big believers in supply chain-led financial platforms, given the strong trust, scale, and compounding network they can tap. CashFlo’s growth in the past 12 months and quality of partners is testimony to the team’s deep insights and ability to create win-win across stakeholders,” said Mridul Arora, partner at Elevation Capital.