CredFlow Acquires YC-Backed TechBiz in All-Cash Deal
- ByStartupStory | June 7, 2023
CredFlow, the cash flow management platform, has announced the acquisition of TechBiz, a management startup backed by Y Combinator. The deal, which was completed in an all-cash transaction, remains undisclosed in terms of the amount involved. The announcement was made by the company in a press release on Wednesday.
CredFlow, supported by prominent investors including Omidyar Network India, Stellaris Venture Partners, and Flourish Ventures, offers comprehensive financial management solutions for small and medium enterprises (SMEs). Its services include cash flow analysis, optimizing outstanding receivables, and integrating contextual financial services to streamline working capital cycles, leading to potential reductions of 25-30%. TechBiz, founded by IIT alumni Pratyush Sharma and Vikramaditya Patil, specializes in assisting SMEs in tracking overdue payments and sending timely reminders to customers.
“Adding TechBiz’s expertise and technology will help us expand our reach and better serve a broader base of SME customers. This is a step towards achieving our goal of becoming the default financial operating system for SMEs and expanding the user base,” said CredFlow founder Kunal Aggarwal.
As part of the acquisition, Sharma and Patil will join CredFlow’s team to facilitate a smooth transition of the product. CredFlow’s CEO, Aggarwal, highlighted that the acquisition will enable the company to broaden its target market by approximately 15%, specifically targeting users of the accounting software Busy. Aggarwal also mentioned that during testing, users of Busy have displayed a higher conversion rate compared to users of Tally, which is widely regarded as the preferred accounting application for small businesses in India.
“This strategic move enables CredFlow to cater to the growing demand for efficient financial solutions among SMEs,” said Sharma, cofounder & CEO of TechBiz.
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