Finance automation and payments platform CashFlo is set to acquire tax compliance management provider LogiTax, sources told Entrackr. The deal aims to help CashFlo expand into the enterprise business sector.
Founded in 2018 by Ankur Bhageria and Dushyant Agarwal, CashFlo assists vendors in accessing short-term capital and enables corporates to optimize working capital and improve topline by managing supply chain finances efficiently. In September 2022, CashFlo raised nearly $9 million led by General Catalyst, with participation from Elevation Capital, bringing its total funding to over $12 million.
Entrackr’s scoop confirmed!!
CashFlo acquires LogiTax
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— Harsh Upadhyay (@upadhyay_harsh1) May 22, 2024
LogiTax, based in Pune, offers an end-to-end tax compliance management solution for managing GST filing, auto-validating invoicing data, generating e-invoices, and keeping data audit-ready. Founded in 2017 by Aditya Kulkarni, LogiTax is a bootstrapped firm competing with Clear (formerly Cleartax), Treflo, myGSTcafe, myBillBook, and Vyapar.
Sources revealed that the term sheet has been signed, and an official announcement is expected soon. Neither CashFlo nor LogiTax responded to queries at the time of reporting. Updates will be provided if they do.
CashFlo’s growth has come at a high cost, as reflected in its financial performance in FY23. According to TheKredible, the company’s operating revenue doubled to Rs 6.73 crore in FY23, with losses amounting to Rs 21.52 crore. In contrast, 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.
6 thoughts on “CashFlo to Acquire LogiTax, Expanding into Enterprise Business”
Interesting development!
CashFlo’s acquisition of LogiTax shows how automation and compliance are becoming central to financial growth. At Sleek Bill, we’ve always believed that integrating smart billing with GST compliance is the key to simplifying business operations for SMEs. Excited to see how this move shapes the future of digital finance and tax management in India!
This acquisition marks a significant step forward in the Indian fintech ecosystem. CashFlo’s move to acquire LogiTax strengthens its position in financial automation and enterprise compliance — a smart strategy given the growing demand for integrated tax and payment solutions. The synergy between working capital management and automated GST compliance could deliver huge efficiency gains for businesses. Excited to see how this integration reshapes the future of finance automation in India!
The CashFlo/LogiTax deal proves that automation is no longer optional for growth. Revenue growth is great, but as the FY23 figures show, managing losses and cash flow is the real challenge. This is exactly why we lean on Sleek Bill; it simplifies that complexity by letting you track every transaction through its Cashbook feature. It’s much easier to scale when you have a clear, automated view of your cash flow and billing in one place.
That’s nice, but we’re seeing similar demand from SMEs looking to connect billing and compliance in one place.
Thanks for sharing this article
The acquisition of LogiTax by CashFlo is a strategic power move. By integrating end-to-end GST compliance and e-invoicing directly into a payments and supply chain finance platform, they are addressing a massive pain point for enterprise CFOs: the fragmentation between liquidity management and tax compliance.
Managing the sheer complexity of vendor financing alongside audit-ready tax filing is a heavy lift for any enterprise. Seeing a platform move toward a holistic solution that handles both the capital flow and the compliance trail is a welcome evolution for the industry.
This deal definitely positions CashFlo to compete more aggressively in the enterprise sector by offering a more robust, integrated tech stack. Looking forward to seeing the official rollout.