Fintech platform Growfin has raised $7.5 million in Series A funding led by Singapore-based venture capital firm SWC Global. Existing investors 3one4 Capital, angel investors, chief financial officers, and other industry leaders participated in the Series A round.
The company stated it plans to use the funds to strengthen its tech stack, expand the line of products it offers, evolve into an “all-in-one integrated cash solution,” and enhance the predictive artificial intelligence (AI) capabilities of its products this year.
The Wilmington-incorporated software-as-a-service (SaaS) startup had raised $1.4 million in seed funding from early-stage VC firm 3one4 Capital and a group of angel investors a year ago.
Growfin’s business-to-business payments collection/automation platform reduces the challenges faced by the revenue and finance teams by giving visibility into account receivables (the amount due to a business from its customers to whom the products/services have been delivered).
The company, whose team is primarily based in Chennai, claims to have experienced an 8X increase in customers over the past 12 months and to have collected $1 billion in account receivables. Locus, a leading provider of last-mile logistics tech, Airmeet, a platform for virtual and hybrid events, Intercom, and Mindtickle, a customer communications platform, are just a few of its notable customers.
Growfin was founded by ex-Freshworks alumni Aravind Gopalan and Raja Jayaraman, whose startup Frilp, a social recommendation tool, was acquired by the SaaS major in 2015. The duo launched the startup publicly a year ago, along with its seed funding announcement.
“Managing receivables and collecting payments is often complex and gets even more complicated as businesses grow. Despite the growth of ERPs and CRMs such as Salesforce and Netsuite, I realized that 90% of finance teams still manage their AR (accounts receivable) processes outside of these tools, usually on spreadsheets or databases internal,” Aravind Gopalan said. “This collaborative approach will provide greater efficiency and transparency and build trusting relationships between customers and businesses to collect B2B payments faster.”