CredFlow, a Delhi-based fintech startup founded in 2020 by Kunal Aggarwal, is revolutionizing how small and medium-sized enterprises (SMEs) manage their finances. By addressing the chronic challenges of cash flow management and access to credit, CredFlow has quickly gained prominence in India's fintech ecosystem.

In November 2024, the company achieved a major milestone by securing $3.7 million in pre-Series B funding, setting the stage for significant expansion and innovation.

The $3.7M Pre-Series B Funding

The latest funding round was led by Inflexor Ventures, a tech-focused venture capital firm co-founded by Venkat Vallabhaneni and Jatin Desai, along with a Singapore-based family office. This strategic investment brings CredFlow’s total funding to over $13 million, following $9.2 million raised in earlier rounds.

Murali Krishna Gunturu, Principal at Inflexor Ventures, emphasized the startup’s potential, stating:

“CredFlow’s automated platform empowers SMEs to fast-track cash flow and access credit with ease. Kunal’s extensive SME experience and his team’s innovative approach position CredFlow as a game-changer for India’s SMEs.”

The funding underscores the confidence investors have in CredFlow’s ability to reshape financial management for SMEs, a sector that forms the backbone of India’s economy.

Key Objectives for the New Funds

The $3.7 million infusion will drive multiple strategic initiatives aimed at scaling CredFlow’s operations:

• Expanding Lending Services: A significant focus is on growing CredFlow Finance, the company’s embedded lending platform, and pursuing an NBFC license to enhance credit offerings for SMEs.
• Technological Advancements: CredFlow plans to enhance its platform with advanced analytics and seamless ERP integrations, further empowering SMEs to make data-driven decisions.
• Scaling KuberX: CredFlow’s credit-scoring app for SMEs, KuberX, currently serves 25,000 monthly active users. With these funds, the company aims to expand its user base tenfold by 2025.

This financial boost will allow CredFlow to deepen its impact, offering innovative financial solutions to a wider audience.

CredFlow’s Impact and Market Standing

CredFlow has integrated over $600 billion worth of invoices and serves nearly half of India’s GST-compliant businesses. Its solutions, such as automated invoice tracking, real-time analytics, and financial insights, are designed to unlock working capital and reduce payment cycles. These services have become essential tools for SMEs aiming to streamline operations and achieve growth.

By positioning itself as a lending enabler and financial guide for SMEs, CredFlow is not only solving immediate financial challenges but also fostering long-term resilience for businesses across India.

Inflexor Ventures: A Strategic Partner

The involvement of Inflexor Ventures, known for backing tech-driven startups, adds significant credibility to CredFlow’s journey. With a track record of investing in next-generation technologies, Inflexor’s partnership signals a strong belief in CredFlow’s vision.

The fund’s co-founders, Venkat Vallabhaneni and Jatin Desai, have expressed their commitment to supporting startups that tackle critical gaps in emerging markets. CredFlow aligns perfectly with their focus on high-impact solutions.

Scaling New Heights

CredFlow’s $3.7 million funding marks a pivotal chapter in its journey. With plans to scale its lending operations, introduce new tools like KuberX, and expand its reach, CredFlow is set to play a transformative role in India’s SME ecosystem. Backed by visionary investors and led by Kunal Aggarwal’s expertise, the company is charting a promising path toward financial inclusion and growth for India’s SMEs.

Source: Entrepreneur, ISN