New Delhi: Growfin, a fintech company that provides accounts receivable automation solutions for B2B enterprises, has announced that it has raised $7.5 million in a Series A funding round. The round was led by Sequoia India, with participation from existing investors, including Ankur Capital, Venture Catalysts, and Better Capital.
Accounts receivable is a critical part of any business, as it represents the money owed to a company by its customers for goods or services provided. However, managing accounts receivable can be time-consuming and challenging, particularly for B2B enterprises that have a large volume of transactions.
Growfin offers an automated solution that streamlines the accounts receivable process, enabling companies to save time and money while improving cash flow. The platform uses artificial intelligence and machine learning algorithms to analyze data and predict when payments will likely be made. It also offers personalized communication with customers and provides real-time updates on the status of outstanding invoices.
According to Growfin, its platform can help companies reduce their accounts receivable cycle by up to 50%, freeing up resources that can be used for other business activities. The company also claims that its solution can help businesses increase the efficiency of their collection by up to 70%.
The new funding will be used to expand Growfin’s operations and invest in product development. The company plans to use the funds to build out its team and accelerate the adoption of its platform among B2B enterprises in India and other markets.
In a statement, Pradeep Rathnam, Co-founder and CEO of Growfin, said, “We are excited to have Sequoia India join us on our mission to help enterprises automate their accounts receivable processes. We believe that our AI-driven solution has the potential to transform the way businesses manage their accounts receivable and improve their cash flow. With this new funding, we will be able to accelerate our growth and bring our solution to more businesses across India and beyond.”
The funding round comes at a time of significant growth for fintech companies in India. According to a recent report by KPMG, the Indian fintech sector is expected to grow at a compound annual growth rate of 22.7% between 2020 and 2025, driven by factors such as increasing digital adoption, regulatory support, and the need for financial inclusion. Growfin is well-positioned to capitalize on this growth and help B2B enterprises automate their accounts receivable processes in India and other markets.
