SaaS fintech platform Growfin announces that it has raises a $7.5M Series A funding round led by Singapore’s SWC Global with participation from existing investors 3one4 Capital and angels including CFOs and other industry leaders.
The funding will help to provide real-time visibility and predictability in cash flow for modern CFOs. Founded in 2021 by Aravind Gopalan and Raja Jayaram, the company is building the tech stack for the modern-day CFO and revenue teams helping companies improve cash flow by accelerating the cash collection cycle.
Growfin claims that it has grown its customer base by 8 times and has processed over $1B in accounts receivables (AR). Notable customers include Intercom, Locus, Mindtickle, among others, who have been able to boost their cash flow by 33% month on month by collecting their accounts receivables on time or faster. Globally, accounts receivable numbers for B2B businesses equate to $125 trillion every year, and 30% of this remains outstanding every month, presenting Growfin with a substantial opportunity to serve.
Modern CFOs are struggling to get to grips with visibility and predictability in their cash collection cycle from customers, many of whom still rely on spreadsheets to solve this problem. Growfin has built a unique finance CRM that solves these challenges for finance and revenue teams. With its automation, collaboration tools and real-time collection tracking capabilities, it helps finance, sales and customer success teams connect in one place to handle customer relationships during the payment process and improve efficiency in collecting payments. It seamlessly integrates with any ERP (which connects invoices with payments) and CRM systems (which connect leads to sales) to drive faster payment collections from customers, improving the cash flow and the financial health of businesses.
Aravind Gopalan, Co-founder and CEO at Growfin said: “Getting paid and getting paid on time have been challenges as long as commerce has existed for businesses of all sizes. Managing receivables and collecting payments are often complex and compound even more as companies grow. Despite the growth of ERPs and CRMs such as Salesforce and Netsuite, I’ve understood that 90% of finance teams still manage their AR processes outside these tools, typically on spreadsheets or in-house databases. We are building a tool that is purpose-built for managing AR by integrating with the ERPs and CRMs, replacing all these spreadsheets and botched systems”
Supporting the Growfin insights and proposition, a recent Gartner report found that CEOs and CFOs of tech companies feel underprepared for the current economic downturn and 78% have invested in automation and cash flow visibility to build the CFO tech stack to navigate the downturn. Additionally, prominent VCs like a16z and Redpoint ventures have also been calling for the modernization of the CFO tech stack as the way forward.
Tuck Lye Koh, Founding Partner at SWC Global added: “Growfin’s AI-powered system is poised to disrupt how businesses collect their invoice payments by sitting on top of ERP systems like Netsuite and Microsoft dynamics that dominate the industry. Globally they have over 100,000 customers and now finance teams beholden to these systems will be able to plug in Growfin to get a deeper and wider eye into their financial well-being with real-time cash-flow efficiency and forecasting. Aravind and Raja are young yet very experienced and we’re excited to be a part of their journey”
Growfin will make significant investments in its tech stack and product range in 2023, expanding its offering from a Finance CRM to an all-in-one integrated cash solution that will enable B2B enterprises to streamline and manage cash flow to enhance its product’s predictive AI capabilities. This evolution will help businesses optimize their working capital and drive growth.