Cashflo Adds 3 Ground-Breaking Enhancements to Its Dynamic Discounting Platform

14 Dec, 2021 16:23 IST|Sakshi Post

The first-to-market, India-centric features include automated pricing engine sanctions and multi-source financing options.

CashFlo, India's leading digital supply chain finance platform, today announced 3 new features to its flagship dynamic vendor financing platform, providing milestone-based financing, deep-tier financing, and a corporate treasury-cum-multi-funder platform. Integrating these first-to-market, India-centric features has helped unlock a 5X increase in returns for customers.

CashFlo was founded in 2018 by Ankur Bhageria and Dushyant Agarwal and currently operates a strong, exponentially growing network of 2 lakh MSMEs and 50+ leading Indian corporates. CashFlo helps vendors and dealers get access to affordable short-term capital and materially improves the bottom lines of buyers by enabling a frictionless flow of working capital into the supply chain.

The triple-benefit of milestone-based financing, from PO to final payment, deep-tier discounting, and a corporate treasury-cum-multi-funder platform with rates as low as 5% per annum, CashFlo will maximise discounting flows across all vendor categories of a buyer, leading to significant value unlocked for both buyers and vendors alike.

The latest enhancements to CashFlo’s dynamic discounting platform significantly increase the percentage of buyers’ spending discounted, a key metric to measure the scale of any such program. Historically, in the Indian market, 10–20% of spending covered by dynamic discounting programmes was considered good; CashFlo has been able to increase this coverage to as much as 50%.

Ankur Bhageria, Founder and CEO, CashFlo, said, "We have invested a lot in building our engineering and product capabilities to cater to the unique needs of the Indian market, and results are now beginning to show. Ever since COVID wave 2 subsided, we’ve witnessed rampant growth in business and are the only platform today that is able to deliver 5x value vs. traditional dynamic discounting platforms in the market. It’s reflected in the fact that India’s leading corporates are coming onboard at a rapid clip and seeing true value realisation. And we are achieving this in a responsible way, being true custodians of their supply chains and supporting their partners on their growth journey. "

Indian supply chains are complex, with many layers of vendors supplying each other and the main OEM/brand. Deep tier discounting, or anchor-initiated tier-2 financing, the ability to direct liquidity to vendors of vendors, has been a much-needed solution in the supply chain finance space, especially since COVID-19. CashFlo is the first organisation to provide this to corporates. Through a single window, buyers can now provide early payments on-demand to their vendors and then ensure that those payments are used to pay their Tier 2 vendors, creating a rapid liquidity flow across the entire supply chain.

Dushyant Agarwal, Co-founder, CashFlo, said, "This is a particularly powerful capability for manufacturing sectors where there is heavy dependence on timely supplies of components, and a single delay at any stage of the supply chain can lead to disruption and loss of business."

Furthermore, the fundamental back-end innovation that enables this rapid transactional capability is the robust pricing engine. It can assess vendor profiles and match the demand for early payments from vendors with supply from buyer treasuries, banks, and NBFCs all in real-time, and also effectively provide instant approval on vendors’ early payment requests. This is a first-to-market innovation in the world of dynamic discounting, with no independent platform providing instant sanction on early payment requests.

On the back of these innovations, CashFlo has already been growing at 40% month over month, winning market share from incumbents over the past six months. Heading into 2022, the company continues to be the fastest-growing supply chain finance platform in India. In a short time, the platform has grown to support 50+ of India’s leading supply chains with a network of over 2 lakh SMEs and expects to grow 12x in throughput in the next year to handle over $12 billion in invoice flows on the platform.

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