Growfin, a Singapore- and San Francisco-based fintech startup that offers software-as-a-service (SaaS) for finance departments, has raised $7.5 million in Series A funding. The startup plans to use the funding to expand its operations in the U.S. and Asia and to build more AI-based technology to expand its platform. Growfin’s next plan is to create a forecasting tool that predicts trends “based on past payment behavior and current receivables data through Growfin”.
The funding round was led by Singapore’s SWC Global, with participation from existing backers 3one4 Capital and angel investors. According to Growfin, the latest funding comes after an 8x growth in customer numbers over the past year, during which it helped clients collect over $1 billion in account receivables (AR). The startup has raised a total of $9 million to date, but is not disclosing its valuation.
Growfin has tapped into a growing market, as evidenced by a recent report from Gartner, which found that 78% of CFOs have invested in automation and cash flow visibility technology. However, many still rely on spreadsheets for current accounts, exposing a gap between a company’s current financial state and its future prospects.
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Growfin’s initial product was an AI-powered finance CRM that allows finance, sales and customer success teams to connect in one place to handle customer relationships during payment and cash-collecting processes. This bridging product speaks to how the pull of accounts receivable departments might sometimes do better if they could join forces and knowledge with those who manage the majority of the customer relationship prior to that point.
According to co-founder and CEO of Growfin, Aravind Gopalan, the startup’s primary users are finance teams in scaling B2B tech companies in SaaS, adtech, logistics tech and edtech. It now has 25 customers, including Intercom, Fourkites, Mindtickle, LeadSquared and Quick Dry Restoration. It sells primarily to finance teams, although revenue-generating teams like sales and customer success are also users of its service. The startup says it has reached $400,000 in annual recurring revenue since its launch 12 months ago.