Cashinvoice & Pravega, a handshake to revolutionize Supply Chain Financing
The size of the Indian economy will increase from $3.2 trillion in 2021–22 to $3.5 trillion in 2022–23 and cross $5 trillion in 2026–27: IMF World Economic Outlook
Imagine India’s economy as a bustling bazaar — its vibrancy fueled by the steady flow of goods and services. But even this bazaar has its own struggle: 63 million MSMEs, the backbone of Indian manufacturing, do not have access to affordable financing. According to a report by Bain& Company, the working capital gap for Indian MSMEs stands at a staggering $317 billion. Amidst these circumstances, supply chain financing solutions tailored to the Indian context have immense potential.
Suppliers often face extended credit periods before receiving payment, while buyers balance procurement with limited resources. Supply chain finance is a vital bridge here, with its strong digital infrastructure and the fintech sector’s prowess in easing credit in the market.
Enter Cashinvoice: A Digital Disruptor in SCF
Cashinvoice is a forward-thinking startup that was founded in 2019 by Arun Poojari & Shrinivas Kasar. It is carving a niche in this space by leveraging the power of technology to revolutionize SCF. It’s Operating System which is tailored for supply chain financing connects marquee banks and financial institutions to anchors*, providing seamless financing to the anchor’s ecosystem of vendors, distributors and retailers.
Within a span of 5 years, Cashinvoice has established itself as a leader in the digital SCF domain, onboarding over 55 corporate anchors, 3000+ vendors and 4000+retailers.
Unpacking the Cashinvoice Toolbox
- Invoice Discounting: Cashinvoice works with banks & financial institutions to offer suppliers the ability to discount their invoices at competitive rates.
- Early Payment: Buyers can choose to pay their suppliers early through the platform, benefiting from potentially lower financing costs and strengthened supplier relationships.
- Trade Finance: Cashinvoice provides trade finance solutions, such as letters of credit and factoring, that mitigate risks and facilitate secure cross-border transactions.
Another thing to note here is that the platform’s digital infrastructure fosters transparency and trust throughout the supply chain. It empowers buyers and suppliers to collaborate more effectively and build stronger partnerships.
Why did we invest?
- We saw a strong and able founding team as the co-founders possess deep domain expertise and experience with the Indian supply chain market.
- A large moat in the business is the SaaS solution they have built for banks which is a ‘pick & shovel’ play in the supply chain space.
- Both SaaS and financing offerings of Cashinvoice reinforce each other, creating strong network effects. The platform offers deep ERP integrations for automation, underwriting, and disbursal of capital.
- Cashinvoice can build deep products within the broader SCF space by virtue of their existing relationships with banks and their in-depth understanding of the space.
Toward a More Inclusive Supply Chain
Cashinvoice’s success is proof of the transformative potential of SCF in emerging markets. The company is poised to revolutionize the way Indian businesses manage their supply chains. As it expands its reach and refines its solutions, Cashinvoice paves the way for a more inclusive and efficient supply chain landscape.
By bridging the gap between financial needs and operational realities, Cashinvoice is empowering businesses, strengthening partnerships, and ultimately, contributing to a more vibrant and inclusive economic future.
We are super excited to partner with Arun & Srinivas on their journey to transforming SCF in India.
*The term anchor loosely refers to large corporates, OEMs and conglomerates
