Ease of doing business for MSMEs: As part of the deal, TechBiz’s co-founders, Pratyush Sharma and Vikramaditya Patil, will join CredFlow’s team to assist with the transition of the product.
Ease of doing business for MSMEs: SME-focused cash flow management company CredFlow on Wednesday announced the acquisition of business management startup TechBiz for an undisclosed amount in an all-cash deal. CredFlow, which allows SMEs to unlock working capital by helping them manage their finances better with insights through a dashboard of pending amounts by customers, sending regular payment reminders, validating invoices and negotiating discounts for early payment, has more than 1 lakh businesses using its software-as-a-service platform to process and sync invoices worth around more than $450 billion so far. The company was launched in May 2020.
As part of the deal, TechBiz’s co-founders, Pratyush Sharma and Vikramaditya Patil, will join CredFlow’s team to assist with the transition of the product. Backed by prominent startup incubator Y Combinator, TechBiz helps SMEs with a business intelligence solution to track their business essentials such as debtors, creditors, sales, outstanding etc.
CredFlow’s Founder & CEO, Kunal Aggarwal said the acquisition will help the company expand its reach and serve a broader base of SME customers. “This acquisition will expand our target market by around 15 per cent into Busy Accounting Software users, who have shown higher conversion rates compared to Tally users when tested,” he added.
The company, backed by venture capital funds such as Omidyar Network India, Stellaris Venture Partners and Flourish Ventures, is looking to launch its offering for more than 6 lakh Busy Accounting Software users all over India and globally.
“This strategic move enables CredFlow to cater to the growing demand for efficient financial solutions, empowering even more SMEs across India to optimise their cashflows and fuel their business growth,” said Pratyush Sharma, Co-Founder & CEO, TechBiz.
Cash flow management and forecasting is important for small businesses to understand if the business is churning out profit and to plan for unforeseen circumstances. It also helps businesses make judicious use of excess cash they may have and manage financial risk more effectively.