Business Wire IndiaCashFlo, India’s leading digital supply chain finance platform today announced 3 new features to its flagship dynamic vendor financing platform, providing milestone-based financing, deep-tier financing and a corporate treasury-cum-multi-funder platform. Integrating these first-to-market, India-centric features have helped unlock 5X increase in returns to customers.
Founded in 2018 by Ankur Bhageria and Dushyant Agarwal, CashFlo currently operates a strong, exponentially growing network of 2 lakh MSMEs and 50+ leading Indian corporates. CashFlo helps vendors and dealers to get access to affordable short-term capital and materially improve bottom lines of buyers by enabling a frictionless flow of working capital to the supply chain.
The triple-benefit of milestone-based financing, – from PO to final payment, deep-tier discounting and a corporate treasury-cum-multi-funder platform with rates as low as 5% per annum, CashFlo will maximise discounting flows across all vendor categories of a buyer leading to significant value unlocked, for both buyers and vendors alike.
The latest enhancements to CashFlo’s dynamic discounting platform significantly increases the percentage of buyers’ spends discounted, a key metric to measure the scale of any such program. Historically, in the Indian market, 10-20% of spending covered by dynamic discounting programs was considered good; CashFlo has been able to increase this coverage to as much as 50%.
Ankur Bhageria, Founder and CEO, CashFlo said, “We have invested a lot in building our engineering and product capabilities to cater to the unique needs of the India market, and results are now beginning to show. Ever since COVID wave 2 subsided, we’ve witnessed rampant growth in business and are the only platform today that is able to deliver 5x value vs. traditional dynamic discounting platforms in the market. It’s reflected in the fact that India’s leading corporates are coming onboard at a rapid clip and seeing true value realisation. And we are achieving this in a responsible way, being true custodians of their supply chains and supporting their partners in their growth journey.”
Indian supply chains are complex, with many layers of vendors supplying each other up to the main OEM/brand. Deep tier discounting, or anchor-initiated tier-2 financing – the ability to direct liquidity to vendors of vendors has been a much-needed solution in the supply chain finance space, especially since COVID-19. CashFlo is the first organization to provide this to corporates. Through a single window, buyers can now provide early payments, on-demand to their vendors, and then ensure that those payments are used to pay their Tier 2 vendors, creating a rapid liquidity flow across the entire supply chain.
Dushyant Agarwal, Co-founder, CashFlo said, “This is a particularly powerful capability for manufacturing sectors where there is heavy dependence on timely supplies of components, and a single delay at any stage of the supply chain can lead to disruption and loss of business.”
Furthermore, the fundamental back-end innovation that enables this rapid transactional capability is the robust pricing engine. It is able to assess vendor profiles and match demand for early payments from vendors, with supply from buyer treasuries, banks and NBFCs all in real-time, and also effectively provide instant approval on vendors’ early payment requests. This is a first-to-market innovation in the world of dynamic discounting, with no independent platform providing instant sanction on early payment requests.
On the back of these innovations, CashFlo has already been growing at 40% month over month, winning market share from incumbents over the past six months. Heading into 2022, the company continues to be the fastest-growing Supply Chain Finance Platform in India. In a short span of time, the platform has grown to support 50+ of India’s leading supply chains with a network of over 2 lakh SMEs and expects to grow 12x in throughput in the next year to handle over $12 billion of invoice flows on the platform.