Cash management — keeping track of who needs to pay bills and whether they’re done — can make or break your business. Now, a startup building SaaS software to help finance departments manage this more intelligently is announcing funding to expand after seeing strong demand.
Growfin, a fintech startup based in Singapore and San Francisco, has raised $7.5 million in Series A funding to provide a SaaS to help finance teams track and collect payments and manage accounts receivable processes. bottom. In the US and Asia, we are working hard to build more AI-based technologies to expand our platform. Next is a forecasting tool that predicts trends “based on historical payment behavior and current receivables data via Growfin.”
Singapore’s SWC Global led the funding round, with participation from existing backers 3one4 Capital and angel investors. The startup touts its latest funding as coming on the back of an eight-fold increase in customer numbers over the past 12 months. During that time, Growfin has helped a client collect over $1 billion in accounts receivable (AR). In total, Growfin now has raised $9 million and has not disclosed a valuation.
Growfin takes advantage of a mature market, especially due to the current economic climate and the pressures being placed on businesses of all sizes.
According to a recent Gartner report, 78% of CFOs are investing in automation and cash flow visualization technology. But while they’re more and more willing to pay for tools that help them plan for the future, when it comes to checking accounts, many still rely on spreadsheets and the company’s current It exposes the gap between having visibility into your financial position and knowing how it’s related. How you will look in a week, month or year.
Growfin’s first product was an AI-powered financial CRM. Using it, he was able to connect his finance, sales and customer success teams in one place and handle customer relationships in the payment and cash collection process. Receivables departments can do better if they can combine the power and knowledge of the people who managed most of the customer relationships prior to that point. It can lead to a lot of sales.)
Instead of building an AR automation product, the company not only automates financial accounts receivable workflows, but also has the right collaboration capabilities and real-time visibility into sales, customer success, and customers themselves in one place (everyone has We’ve created a financial CRM to offer in (where you can see it). same information).
The initial push for more financial visibility has proved popular. Growfin’s main user is currently expanding his B2B technology company of SaaS, ad tech, logistics tech and ed tech, currently has 25 customers including Intercom, Fourkites, Mindtickle, LeadSquared and Quick Dry Restoration. increase. , he told TechCrunch. As you can imagine, revenue-generating teams such as sales and customer success are also users of its services.The startup says it has now reached $400,000 in annual recurring revenue since launching 12 months ago.
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Image credit: Growfin founders (left to right) Aravind Gopalan and Raja Jayaraman
Intercom uses Growfin to automate and track collection activities and integrates with NetSuite, Zuora, and Salesforce to provide real-time visibility to financial leaders, Gopalan explained. “We reduced the cash collection cycle from he 91 days to 59 days in five months and improved collection efficiency by 35%,” he said.
Logistics tech startup Locus uses Growfin to resolve invoice disputes and collect payments faster, claiming a 60% increase in team productivity in 10 months. Gopalan said.
Founded in 2021 by Gopalan and Raja Jayaram, the co-founders told TechCrunch they recruited more than 200 people around the world when the product was still in development to gain more insight into the problems they typically face. The overwhelming message is that finance teams are facing legacy systems based on spreadsheets and the expensive prospect of simply hiring more people as a solution to their time-consuming workloads. He said that he was not satisfied with the situation.
“Managing accounts receivable and collecting payments is often complex, and it gets even more complex as companies grow. Despite the growth of ERPs and CRMs like Salesforce and Netsuite, 90% of finance teams We understand that the AR (accounts receivable) process is managed outside of these tools, typically in spreadsheets or internal databases,” says Gopalan. “This collaboration-first approach increases efficiency and transparency, builds trust between customers and businesses, and enables faster collection of B2B payments.”
The company employs 40 people and plans to double its headcount this year in the US and Asia, where most of its customers are based.
Growfin’s competitors include HighRadius, Upflow, Tesorio, YayPay and Gaviti. ERP service providers are indirect competitors, he said, Gopalan.
“Growfin’s AI-powered system is poised to disrupt the way businesses collect bill payments by sitting on top of industry-dominant ERP systems such as Netsuite and Microsoft Dynamics.” said Tuck Lye Koh, founding partner of SWC Global. “Worldwide he has over 100,000 customers and now the finance teams using these systems are plugging in Growfin to improve their financial health with real-time cash flow efficiency and forecasting. It allows us to see deeper and wider.”
