FloBiz Raises $10 Mn From Elevation Capital And Existing Investors
The company intends to use the capital for team expansion, product development and accelerate sales and marketing efforts
Small and medium businesses (SMB) digitization startup FloBiz—which aims to accelerate the growth of small and medium enterprises (SME) through digitization—on Tuesday announced to have raised $10 million in a Series A round led by Elevation Capital. The latest round also saw participation from existing investors Greenoaks Capital and Beenext.
The company, which offers a billing and accounting app myBillBook as its flagship product, intends to use the capital for team expansion, product development, and accelerate sales and marketing efforts.
Driven by multiple tailwinds such as mobile/data penetration, GST compliance, technology adoption, and lately COVID-19, historically dispersed small and medium businesses (SMBs) in India are getting more organized and formalized. While technology advancement and digitization push has led to several transformations in the sector, essential software like custom ERPs and legacy accounting systems still come at a very high cost, require considerable technical know-how and prior accounting knowledge. The absence of affordable and easy-to-use solutions hinders the growth of SMBs significantly.
FloBiz’s mission is to unlock this access and accelerate the growth of Indian SMBs through digitization; in this endeavor, the company has re-designed the complete user experience and created a superior software product, the company shared.
“The MSME sector is the backbone to India’s gross domestic product (GDP) helping the country speed up to becoming a $5 trillion economy. Access to smartphones and internet penetration with affordable data plans have led to a rapidly growing demand for digital tools and products amongst small and medium business owners, who currently have to heavily rely on manual, paper-led processes. However, there lies a huge opportunity when it comes to providing end-to-end support and solutions to SMBs for managing their business seamlessly. We strongly believe that our product myBillBook empowers SMBs by automating their workflows, helps maintain inventory better, manages their receivables and payables, and downloads critical business reports for quick and efficient decision-making on the go. With this additional funding we plan to grow our trader base at least 7-time by 2022 through deeply focused product developments driven by user feedback and making myBillBook simple to use through personalization,” remarked Rahul Raj, founder, and chief executive officer, FloBiz.
FloBiz’s flagship product myBillBook offers deep capabilities - recording several types of transactions as sales, purchases, expenses, maintaining inventory, managing receivables and payables, building business reports of profit and loss, stock summary, sales summary, among others, providing multi-user access with permission controls and many more. The solutions bring complete accounting capabilities on a mobile interface that can be used by any small business owner in their regional language, the company further shared.
“Digitization of SMBs is an irreversible trend and we have been very impressed with FloBiz’s mobile-first, bottom-up product-led approach to capture this opportunity. We believe that myBillBook is building for foundational, deep use-cases for this segment making the product indispensable to the SMB owners. We were very impressed with the customer love and the depth of usage of the product across the SMB value chain - retailers, distributors, wholesalers, and manufacturers. The optionalities opened by capturing deep users across the supply chain are enormous, and we look forward to partnering with the team as they execute on their extensive product road-map,” commented Mridul Arora, managing director, Elevation Capital.
Prior to the $10 million Series A capital raise, FloBiz raised $3 million in its seed stage round in 2019 and has grown 12-time in the last 6 months with over 3 million SMBs on-boarded on the platform and over $6 billion annualized transaction volume recorded. The app is currently available in English, Hindi, Gujarati, and Tamil.