Fintech Startup QuiD Cash Bags $4.5 Mn in Pre-Series A Fundraising, To Boost Tech Stack

QuiD Cash, a Bengaluru-based supply chain fintech firm, raised $4.5 million (approximately INR 38.23 crore) in a Pre-Series A fundraising round from a number of angel investors, including Piyush Jain, Director of Shrem Group, and existing backer MINTCAP.

QuiD Cash, founded by Subhash Gupta and Vikram AG, offers technologically advanced financial solutions via its B2B supply chain platform. The startup presently claims to service about 8,000 registered users and collaborates with over 20 significant anchors in FMCG, automotive, pharmaceuticals, and agribusiness, with each anchor processing transactions worth INR 50-250 crore per month.

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The startup intends to use the new funding to improve technology and expand its operations.

Following the funding, the B2B company launched QuiD Capital, an NBFC aimed to support anchor-led invoice finance.

“With the market’s robust demand, cash will be directed into additional investments in technology and growth. Gupta told Inc42 that QuiD’s hero product, the ‘Pay-in’ solution package for suppliers, comprises Pay Now and Pay Later at the invoice level, as well as automated reconciliation and reporting features, and will be extended with supplier ERP integration.

QuiD Cash uses its own QuiD Score underwriting process to keep loan default rates at 1.5%. “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,” Vikram shared.

The firm currently employs 40 individuals and wants to increase that number to 50 by next year. It plans to onboard 5 lakh retailers over the next two years. Earlier in 2024, QuiD raised INR 5 crore in pre-seed funding from Mint Cap Enterprises and Stone Park Capital.

According to a 2023 RBI report cited by the corporation, India’s supply chain financing opportunity is valued at INR 20 lakh crore. The sector has recently experienced increased investor interest, with some NBFCs raising considerable funds.

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

As per Inc42’s ‘State of Indian Fintech Report Q4 2023’, the lending tech opportunity in India is anticipated to be worth $1.3 trillion by 2030.