Fintech startup CredFlow on Wednesday said that it has acquired business management startup TechBiz for an undisclosed amount in an all-cash deal.
CredFlow, which is a cash flow management platform focused on mid-market small and medium enterprises, aims to scale and grow in the Indian SME (small and medium-sized enterprises) space with the acquisition.
As part of the deal, TechBiz's cofounders, Pratyush Sharma and Vikramaditya Patil, will join CredFlow's team to assist with the transition of the product. The TechBiz team brings experience in SME SaaS and will help CredFlow expand its offerings to more SMEs.
By acquiring TechBiz, CredFlow aims to launch its offering for more than 600K Busy Accounting software users all over India and globally, the company said in a statement.
"Adding TechBiz's expertise and technology will help us expand our reach and better serve a broader base of SME customers. Our aim at CredFlow is to provide complete financial solutions to our customers.This acquisition will expand our target market by 15% into busy accounting software users, who have shown higher conversion rates compared to Tally users when tested," said CredFlow's founder and chief executive officer, Kunal Aggarwal.
Founded in May 2020, CredFlow is backed by venture capital funds such as Omidyar Network India, Stellaris Venture Partners and Flourish Ventures. It raised $2.1 million (Rs 15.2 crore then) in its seed round funding in April 2021.
On the other hand, TechBiz, which was one of the startups shortlisted for Y Combinator’s W21 batch, helps small and medium-sized enterprises with their due payments from clients.
"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 Sharma, co-founder and chief executive officer of TechBiz.
CredFlow claims that its cashflow management SaaS platform helps SMEs manage their finances and reduces the businesses' working capital cycles by 25-30%. Since its launch, over 1 lakh businesses have used CredFlow to process and sync invoices worth more than ~$450 billion, with more than 45% of Indian GST businesses on the CredFlow Network.
