Sources familiar with the development told media that CashFlo, a finance automation and payments platform, is poised to purchase LogiTax, a provider of tax compliance management solutions.
According to insiders, the agreement will support CashFlo’s entry into the enterprise sector.
Founded in 2018 by Ankur Bhageria and Dushyant Agarwal, CashFlo facilitates short-term capital access for vendors while empowering corporates to manage their supply chain’s finances more effectively, maximizing working capital flow and topline.
With assistance from current investor Elevation Capital, General Catalyst led CashFlo’s September 2022 fundraising effort, which brought in close to $9 million. Over $11 million has been raised by the Mumbai-based company thus far.
Pune-centered an end-to-end solution for managing tax compliance, LogiTax assists with managing GST filing, automatically validating invoice data to produce electronic invoices, and maintaining audit-ready records. ERP partners, SMEs, and corporates can all access its product suite.
Aditya Kulkarni established the bootstrapped company LogiTax in 2017. Clear (formerly Cleartax), Treflo, myGSTcafe, myBillBook, and Vyapar are its rivals.
Additionally, according to sources, the term sheet has been signed, and an official announcement could be made shortly. Following the acquisition, Kulkarni will oversee CashFlo’s enterprise business.
There was no response to inquiries sent to CashFlo and LogiTax. If they do, we’ll update the post accordingly.
CashFlo’s financial performance in FY23 made it clear that it was pursuing growth at a high cost. According to the media, the company’s operating revenue increased by twofold to Rs 4.73 crore in FY23, while its losses were recorded at Rs 21.52 crore in the same period. Conversely, in FY23, LogiTax reported revenue of Rs 2.12 crore and losses of Rs 12.34 lakh. The FY24 financials for both companies have not yet been submitted.
