Exclusive: CashFlo all set to acquire LogiTax to foray into enterprize biz

Finance automation and payments platform CashFlo is all set to acquire tax compliance management solution provider LogiTax, sources aware of the development told Entrackr.

As per sources, the deal will help CashFlo to foray into enterprize business.

Founded in 2018 by Ankur Bhageria and Dushyant Agarwal, CashFlo helps vendors to access short-term capital while it enables corporates to optimize working capital flow and increase topline by managing their supply chain’s finances efficiently.

In September 2022, CashFlo raised nearly $9 million led by General Catalyst with participation from existing investor, Elevation Capital. So far, the Mumbai-based firm has raised over $11 million.

Pune-based LogiTax is an end-to-end tax compliance management solution which helps in managing GST filing to auto-validating invoicing data to generate e-invoices and keeping data audit-ready. Its product suite is available for ERP partners, SMEs and corporates.

Founded by Aditya Kulkarni, LogiTax is a bootstrapped firm launched in 2017. It competes with Clear (formerly Cleartax), Treflo, myGSTcafe, myBillBook and Vyapar.

Sources also added that the term sheet has been signed and the official announcement may happen soon. Post acquisition, Kulkarni will lead the enterprize business of CashFlo.

Queries sent to CashFlo and LogiTax did not elicit any response. We’ll update the post in case they do.

CashFlo was chasing growth at a high cost and this could be evident from its financial performance in FY23. As per startup data intelligence platform TheKredible, the firm registered a two fold jump in its operating revenue to Rs 4.73 crore in FY23 while its losses stood at Rs 21.52 crore during the same period. On the other side, LogiTax recorded Rs 2.12 crore revenue and Rs 12.34 lakh losses in FY23. Both companies are yet to file their FY24 numbers.