CredFlow Raises $3.7 Million in Pre-Series B Funding to Enhance Cash Flow Solutions for SMEs

PC: Omidyar Network India

CredFlow, a Delhi-based fintech startup, has successfully secured $3.7 million (approximately ₹31.2 crore) in a pre-Series B funding round. This round was co-led by existing investors Inflexor Ventures and a Singapore-based family office. The latest funding adds to the $9.2 million raised across two previous funding rounds, showcasing strong investor confidence in CredFlow’s innovative approach to cash flow management for small and medium-sized enterprises (SMEs).

Cash Flow Solution for SMEs by CredFlow

Founded in 2020 by Kunal Aggarwal, CredFlow is a SaaS-based cash flow management solution specifically targeted to meet the needs of SMEs. It intends to make financial processes streamlined and to operate at higher efficiency, allowing businesses to check their cash flow so that it operates effectively. CredFlow is designed to empower SMEs by helping them unlock working capital and allow more informed financial decisions with timely information by deploying an easy-to-avail dashboard.

The core features of the platform include tracking pending amounts from the customers, sending regular reminders for payments, validating invoices, and negotiating for reduced payback within specific time frames. By emphasizing these crucial cash flow management aspects, CredFlow helps businesses minimize working capital cycles and predict cash flows ahead, driving more informed business decisions.

Technological Integration and Real-Time Analytics

One of the significant advantages of CredFlow’s offering is that it can be directly connected to very popular ERP systems such as Tally and Busy. That enables business owners to access real-time analytics and deep insights into their operations for managing finances and optimizing cash flow. CredFlow bridges the gap between the formal sector lending and MSMEs, making the process of lending much more accessible to smaller businesses.

It claims to have helped more than 150,000 SMEs in India deal with cash flow mismanagement. By building a robust platform that has integrated $600 billion worth of invoices, CredFlow has captured nearly 50% of India’s GST-registered businesses on to the network. This gives immense depth and spreads that clearly reflect the impact of the startup on the SME sector, healing one of its critical pain points that most businesses face.

KuberX Launch and Future Growth

Earlier this year, CredFlow launched an innovative credit scoring app called **KuberX**, which has picked up to over 25,000 MAUs. It enhances the overall credit assessment process for SMEs and gets them easier access to funding. They are looking for growth to at least 250,000 MAUs before the end of 2025 to strengthen their fintech position.

The latest investment will be used to optimize and scale CredFlow’s financial services and lending verticals and also for enabling its technology infrastructure. The company looks to innovate to better its offerings and increase its market share as it continues to capture the evolving needs of the SME segment.

In conclusion, CredFlow’s successful fundraising is a testament to growing demand for fintech solutions specifically tailored to the needs of small and medium-sized enterprises. With its innovative approach toward cash flow management and a strong track record supporting SMEs, CredFlow is well positioned for significant growth in the next few years. As it enhances its technology and expands its services, the startup is poised to play a very important role in transforming how SMEs manage their finances and ultimately contribute to the broader economic landscape.