Treasury management startup IBSFINtech has landed seed funding from investors, reports from Indian information services group VCCircle said Monday (Oct. 9).
The India-based startup secured investment from Shailesh Haribhaki, chairman of consultancy firm Haribhakti & Co., reports said, though IBSFINtech did not disclose how much it raised. According to the VCCircle reports, the company is in the process of raising growth funding of up to $4 million as it looks to scale operations and expand internationally. IBSFINtech noted it plans to use the funds for research and development.
IBSFINtech provides software to support companies’ treasury and foreign exchange management. eCommerce marketplace Snapdeal and news platform Times of India are among some of IBSFINtech’s current users, according to VCCircle. Reports said Indian treasury market transactions currently amount to $20 billion, though analysis from management consulting firm McKinsey & Company said the global corporate treasury, B2B payments and cash flow market is worth $135 trillion.
“We at IBSFINtech have observed tremendous growth in this segment in the last few years,” said Chandra Mohan Grover, the company’s co-founder, in a statement. “The number of clients coming onboard have tripled year-over-year.”
According to the startup, there are more than 6,200 companies in India with turnover surpassing $74 million that remain dependent on spreadsheets and other manual processes for treasury management. A 2015 study published by Deloitte found corporate treasurers across India are particularly concerned about exposure to global threats like FX volatility.
“Treasurers reported that lack of adequate information from business units continues to be their biggest challenge in managing global cash flows,” Deloitte concluded in its report at the time. “They also attributed forex and commodity price variability to difficulties in cash flow management.”
Nearly half of the treasurers surveyed said their top challenge is a lack of clarity regarding exposure to various risks.