Supply chain financing platform Cashinvoice announced the completion of a $3.4 million funding round in Series A. Pravega Ventures, HDFC Bank, and existing investor Accion Venture Lab are the institutional investors contributing to this round.
Over the past two years, Cashinvoice has collaborated with HDFC Bank to digitalize the bank’s internal supply chain finance processes. This strategic partnership provides Cashinvoice with advantageous access to HDFC Bank’s extensive corporate banking network, comprising over 5,000 anchor companies, according to cofounder Shrinivas Kasar.
In addition to the financial support, HDFC Bank, as a strategic investor, will collaborate with Cashinvoice in co-developing products customized for supply chain financing, according to Kasar. Cashinvoice aims to extend loans amounting to $2.4 billion to micro, small, and medium enterprises by the financial year ending March 2025 (FY25).
“Our next priorities include taking our current 75 anchor firms to 200 within FY26, and 700 in the next couple of years,” said Kasar. The newly raised funds will facilitate the expansion of Cashinvoice’s network into tier 2 cities and beyond, Kasar mentioned.
Currently based in Mumbai, the startup, comprising 82 employees, collaborates with 25 banks and has partnerships with significant supply chain players or anchor firms, including Tata Motors, Voltas, and Britannia.
“Our specialization lies in making the lending entirely digital-first. Secondly, we do the algorithmic discovery in terms of which the supply chain finance players are eligible to lend into the ecosystem of vendors,” Kasar said.
Cashinvoice operates with a network of 100,000 distributing and supplying vendors, with 5,000 actively borrowing micro, small, and medium enterprises (MSMEs). The total invoice financing throughput of the company is approximately Rs 17,000 crore.
Founded in 2018, the firm had secured $1 million in funding from Accion Venture Lab in October 2021.
“The company has made significant strides in optimizing cash flow and working capital management for businesses, which is a clear testament to the leadership team’s capabilities and we are excited to be a part of their journey,” a spokesperson for Pravega Ventures said.