Introduction
Bengaluru-based supply chain fintech startup QuiD Cash has achieved a significant milestone by raising $4.5 million (approximately INR 38.23 crore) in its Pre-Series A funding round. This round witnessed participation from prominent angel investors, including Piyush Jain, Director of Shrem Group, alongside existing investor MINTCAP.
Funding Focus Areas
The freshly raised funds are earmarked for:
- Technology Enhancement: Upgrading its proprietary platform to improve user experience and operational efficiency.
- Business Expansion: Scaling operations to tap into new markets and industries.
Additionally, QuiD Cash has launched QuiD Capital, an NBFC initiative targeting anchor-led invoice financing, further solidifying its position in the fintech ecosystem.
Founders and Vision
Established by Subhash Gupta and Vikram AG, QuiD Cash aims to simplify financial solutions for supply chains through technology. The platform currently serves around 8,000 registered users and collaborates with over 20 large anchors across sectors like FMCG, automotive, pharmaceuticals, and agriculture.
Key Features of QuiD Cash’s Offerings
- ‘Pay-in’ Solution Suite: A comprehensive solution designed for suppliers, including features like Pay Now and Pay Later at the invoice level.
- Automated Capabilities: Advanced reconciliation and reporting functionalities.
- ERP Integration: Seamless integration with supplier ERP systems to enhance usability.
Low Default Rate Powered by QuiD Score
QuiD Cash boasts a low loan default rate of just 1.5%, attributed to its proprietary QuiD Score underwriting model. Explaining its effectiveness, co-founder Vikram AG said, “The algorithm calculates a risk score for each retailer based on shared data, ensuring precise underwriting.”
Growth Plans and Team Expansion
Currently operating with a lean team of 40 employees, QuiD Cash plans to expand to a 50-member workforce by next year. The company has ambitious goals, including:
- Retailer Onboarding: Adding 5 lakh retailers within the next two years.
- Scaling Transactions: Supporting anchors handling transactions worth INR 50 to INR 250 crore monthly.
Indian Supply Chain Financing: A Growing Opportunity
According to a 2023 RBI report, the supply chain financing market in India is estimated to be worth INR 20 lakh crore. This lucrative sector has drawn significant investor interest recently.
Industry Highlights:
- Avanti Finance: Raised $14.2 million in Series B extension funding earlier this month.
- Arthan Finance: Secured INR 50 crore in Series B funding in June 2024.
- Amica Finance: Raised INR 20 crore from Peak XV Partners and Matrix Partners India.
Looking Ahead
With its latest funding and innovative technology-driven solutions, QuiD Cash is poised to transform the Indian supply chain finance ecosystem. By leveraging advanced analytics and fostering robust partnerships, the company aims to bridge financing gaps and empower businesses across the country.
Conclusion
QuiD Cash’s recent funding marks a critical step in its journey toward revolutionizing supply chain financing in India. As the sector continues to attract investor attention, startups like QuiD Cash are at the forefront of driving growth and innovation.
