Supply chain fintech startup QuiD Cash has raised $4.5 million in pre-Series A from angel investors including Piyush Jain, director of Shrem Group and existing investor MINTCAP.
The startup launched QuiD Capital, an NBFC arm to facilitate anchor bill financing
The Bangalore-based company serves 8,000 users across the FMCG, automotive and pharmaceutical sectors, and plans to expand its technology stack.
Bengaluru-based supply chain fintech startup QuiD Cash has raised $4.5 Mn (around INR 38.23 Cr) in a pre-Series A funding round from a host of angel investors, including Shrem Group director Piyush Jain and existing backer MINTCAP.
The startup plans to deploy fresh capital for technological improvement and business growth.
Through fundraising, the B2B company also rolled out QuiD Capital, an NBFC designed to facilitate anchor invoice financing.
Founded by Subhash Gupta and Vikram AG, QuiD Cash provides technology-enabled financial solutions through its B2B supply chain platform. The startup currently claims to serve around 8,000 registered users and works with over 20 major pillars across the FMCG, automotive, pharmaceutical and food industries, with each pillar processing transactions worth between 50 and 250 INR per month.
“Given the strong demand from the market, the funds will be deployed towards further investments in technology and growth. QuiD’s suite of pay-in solutions for suppliers includes pay now and pay later at the invoice level with automated reconciliation and reporting capabilities, and will be further enhanced with supplier ERP integration. , Gupta told Inc42.
QuiD Cash maintains a default rate of approximately 1.5% on its loans through its proprietary QuiD Score underwriting model. “Every time a retailer is onboarded or every time the vendor shares the retailer data with us, the algorithm calculates the risk score for each of those retailers,” Vikram said.
Operating with a team of 40 employees, the startup plans to expand to 50 people next year. It aims to onboard 5 lakh retailers in the next two years. Earlier in 2024, QuiD had raised INR 5 Cr in pre-seed funding led by Mint Cap Enterprises and Stone Park Capital.
According to an RBI 2023 report referenced by the company, the supply chain financing opportunity in India is estimated at INR 20 Lakh Cr. The sector has seen growing investor interest recently, with several NBFCs raising significant capital.
Earlier this month, Bangalore-based Avanti Finance obtained $14.2 million in Series B expansion funding of Dia Vikas Capital, while in June 2024, based in Mumbai Arthan Finance raised INR 50 Cr in a Series B funding led by Incofin India Progress Fund. Around the same time, Jupiter’s NBFC arm Amica Finance raised INR 20 Cr from Peak XV Partners, Matrix Partners India and others.
According to Inc42’s “State of Indian Fintech Report Q4 2023”The technology lending opportunity in India is expected to reach $1.3 billion by 2030.