Finance automation and payments platform CashFlo is poised to acquire tax compliance management solution provider LogiTax, sources familiar with the development informed Entrackr.
The strategic acquisition will enable CashFlo to enter the enterprise business sector.
Founded in 2018 by Ankur Bhageria and Dushyant Agarwal, CashFlo facilitates short-term capital access for vendors and helps corporations optimize working capital flow and enhance topline by efficiently managing supply chain finances.
In September 2022, CashFlo secured nearly $9 million in funding led by General Catalyst, with participation from existing investor Elevation Capital, bringing its total fundraising to over $12 million.
LogiTax, based in Pune and established by Aditya Kulkarni in 2017, provides an end-to-end tax compliance management solution. The platform assists in managing GST filings, auto-validating invoicing data, generating e-invoices, and keeping data audit-ready.
Its product suite is tailored for ERP partners, SMEs, and corporations. Competing with Clear (formerly Cleartax), Treflo, myGSTcafe, myBillBook, and Vyapar, LogiTax has carved a niche in the tax compliance space.
Sources indicated that the term sheet has been signed, with an official announcement expected soon. Post-acquisition, Kulkarni will lead CashFlo’s enterprise business.
Queries sent to CashFlo and LogiTax did not elicit any response at the time of publication. Updates will follow if they respond.
The financial performance of CashFlo in FY23 reflects its aggressive growth strategy, with a twofold increase in operating revenue to Rs 4.73 crore, while incurring losses of Rs 21.52 crore, according to startup data intelligence platform TheKredible.
Meanwhile, LogiTax recorded Rs 2.12 crore in revenue and Rs 12.34 lakh in losses for FY23. Both companies have yet to file their FY24 financials.
Source: Entrackr
