Fintech

QuiD Cash Raises $4.5 Million in Pre-Series A Funding to Fuel Growth and Tech Expansion

• ByStartupStory     |    December 19, 2024

QuiD Cash, a Bengaluru-based supply chain fintech startup, has successfully raised $4.5 million (approximately INR 38.23 crore) in its Pre-Series A funding round. The funding round saw participation from angel investors, including Piyush Jain, Director of Shrem Group, and existing backer MINTCAP.

The startup plans to deploy the funds for enhancing its technology and expanding its business operations. Additionally, the company has rolled out QuiD Capital, an NBFC (Non-Banking Financial Company) focused on facilitating anchor-led invoice financing.

Founded by Subhash Gupta and Vikram AG, QuiD Cash delivers technology-driven financial solutions via its B2B supply chain platform. The startup claims to serve around 8,000 registered users and collaborates with more than 20 large anchors across various sectors, including FMCG, automotive, pharmaceuticals, and agri-businesses. Each anchor processes transactions worth INR 50 to INR 250 crore monthly.

“With the strong demand coming from the market, funds will be deployed towards further investment in technology and growth. QuiD’s hero product ‘Pay-in’ solution suite for suppliers includes Pay Now and Pay Later at invoice level with automated reconciliation and reporting capabilities, and will be further enhanced with supplier ERP Integration,” said Subhash Gupta, co-founder of QuiD Cash, in an interview with Inc42.

QuiD Cash has maintained a low default rate of approximately 1.5% on its loans, thanks to its proprietary QuiD Score underwriting model. Vikram AG, co-founder of the company, explained, “Whenever a retailer gets onboarded or whenever the supplier shares the retailer’s data to us, the algorithm calculates the risk score for each of these retailers.”

QuiD Cash currently operates with a team of 40 employees and plans to expand to 50 people by next year. The company has set an ambitious goal of onboarding 5 lakh retailers over the next two years. Earlier in 2024, the company raised INR 5 crore in pre-seed funding led by Mint Cap Enterprises and Stone Park Capital.

The supply chain financing opportunity in India is estimated at INR 20 lakh crore, according to a 2023 RBI report cited by the company. The sector has seen a surge in investor interest recently, with several NBFCs raising significant capital.

Earlier this month, Bengaluru-based Avanti Finance raised $14.2 million in Series B extension funding from Dia Vikas Capital. Additionally, in June 2024, Mumbai-based Arthan Finance raised INR 50 crore in Series B funding led by Incofin India Progress Fund. Around the same time, Jupiter’s NBFC arm, Amica Finance, raised INR 20 crore from Peak XV Partners, Matrix Partners India, and others.

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