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Fintech startup CashFlo has raised $8.7 Mn (INR 70 Cr) from General Catalyst and Elevation Capital.

Angels investors including Jitendra Gupta from Jupiter, Amrish Rau from Pine Labs, Nitin Gupta from Uni, Rangarajan K from Five Star, Gokul Rajaram, Whiteboard Capital, Atrium Angels and Saikiran Krishnamurthy also participated in the funding round.

CashFlo will use the funds to invest in core products and technology. Besides, it will also utilise the fresh funding to expand market leadership in the enterprise segment.

“We are privileged to strengthen our partnership with CashFlo as they disrupt B2B payments and vendor financing in India. We are big believers in supply chain-led financial platforms, given the strong trust, scale and compounding network they are able to tap,” said Mridul Arora, partner at Elevation Capital.

Including the current fundraising, CashFlo has secured a total of $12 funding to date.

Founded in 2018 by former Boston Consulting Group executives–Ankur Bhageria and Dushyant Agarwal, CashFlo is a vendor discounting and financing platform. The startup helps businesses automate their finance processes and manage cash flows better. 

To shore up a brand’s supply chain network, CashFlo offers credit solutions including treasury and working capital optimisation to buyers. It also offers invoice discounting services to suppliers. 

“In the past three years, we have heavily invested in our product and technology capabilities to constantly stay ahead of the market and bring a differentiated value proposition to our clients. Today we are head and shoulders above competition in terms of product and execution capabilities,” Bhageria said.

In 2019, CashFlo secured $3.3 Mn in its Series A funding from SAIF Partners, and angel investor–Ashish Iyer, former partner at BCG and Arpan Sheth, managing director at Bain & Co, among others. 

The Mumbai-based startup claims to have helped businesses earn more than 12% risk-free returns. It further asserted to have grown over 800% in the past 12 months and has 100% client retention to date.

In the lending segment, it competes with the likes of AyeFinance, FinAGG and LendingKart.

As per an Inc42 report, the Indian fintech industry is likely to become a $1.3 Tn market by 2025. Out of this, the lending tech segment will account for a $616 Bn market share.