CashFlo Set to Acquire LogiTax, Expanding into Enterprise Market

CashFlo, a prominent player in the finance automation and payments sector, is poised to acquire LogiTax, a leading provider of tax compliance management solutions, according to reliable sources. This acquisition signifies CashFlo’s strategic move to enter the lucrative enterprise business segment.

CashFlo: A Leader in Supply Chain Finance

Founded in 2018 by Ankur Bhageria and Dushyant Agarwal, CashFlo has established itself as a trusted partner for businesses. Its solutions empower vendors to access short-term working capital, while enabling corporates to optimize their cash flow and streamline supply chain finances. CashFlo’s success is further validated by its fundraising prowess. In September 2022, the Mumbai-based firm secured nearly $9 million in funding led by General Catalyst, with participation from existing investor Elevation Capital. This brings their total funding to over $12 million.

LogiTax: Simplifying Tax Compliance

Headquartered in Pune, LogiTax offers a comprehensive suite of tax compliance management solutions. Their services encompass functionalities like GST filing, invoice data validation, e-invoice generation, and ensuring audit-ready data storage. Their solutions cater to a diverse clientele, including ERP partners, SMEs, and large corporations. Founded in 2017 by Aditya Kulkarni, LogiTax has carved a niche in the market, competing with established players like Clear (formerly Cleartax), Treflo, myGSTcafe, myBillBook, and Vyapar.

Acquisition to Drive Enterprise Expansion

Sources familiar with the development have revealed that a term sheet has been signed, paving the way for an official announcement in the near future. Following the acquisition, Aditya Kulkarni is expected to spearhead CashFlo’s foray into the enterprise business segment, leveraging his expertise and LogiTax’s established client base.

Financial Performance and Future Outlook

Efforts to reach out to both CashFlo and LogiTax for comment have not yielded any response at this time. While both companies have yet to disclose their FY24 financials, CashFlo’s aggressive growth strategy may have come at a cost. According to TheKredible, a startup data intelligence platform, CashFlo’s operating revenue in FY23 doubled to Rs 4.73 crore, but the company also incurred losses of Rs 21.52 crore during the same period. LogiTax, on the other hand, reported Rs 2.12 crore in revenue with losses of Rs 12.34 lakh in FY23. This acquisition is expected to be a win-win for both parties. CashFlo gains a foothold in the enterprise space, while LogiTax benefits from CashFlo’s wider reach and resources. The combined entity will be well-positioned to offer a more comprehensive suite of financial solutions to a broader client base.