SoftBank-backed C2FO acquires Noida company
SoftBank and Mubadala Investment Company, has acquired Noida-based dynamic discounting solution provider Priority Vendor Technologies for an undisclosed sum.
Priority Vendor Technologies’ existing venture capital investors Lightspeed Venture Partners and Catamaran Ventures will get an exit, senior executives told ET. Last month, C2FO had raised $200 million from investors led by Softbank Vision Fund. Armed with the war chest to explore inorganic op opportunities in new markets, C2FO acquired Priority to expand its India operations, as per the company.
“The Indian market currently accounts for 5% of total business. With this acquisition and our other growth initiatives, we expect to double share in the next few years,” said Pradeep Gode, India head, C2FO. The company is looking at introducing some of its global products here.
“We will introduce accounts receivable (A/R) financing solutions and data-driven funding options for our customers,” said Gode. “A big part of the $200 million fundraise from Softbank Vision Fund in August was to support our growth ambitions in India and geographic expansions. This acquisition is a vi vital next step as we define our growth strategy in India,” said Gode.
Founded in 2016 by Kunal Agarwal and Nipun Kohli, Priority Vendor Technologies is a supply chain focused fintech company which runs a dynamic discounting platform. It raised its series A funding from US-based Lightspeed and Catamaran in 2017. Its key clients include Jubilant Foods, TVS, Godrej Consumer, Apollo Tyres, Britannia, Dabur, Marico and Titan. It has 70 customers in India and recently it started providing services in Bangladesh, Dubai and Vietnam.
“We are also excited about the crossover that exists between the platforms,” said Gode. “Businesses that today independently use both the platforms will now be able to access all their accounts receivable on a single network and solve their cash flow needs. Our strategy continues to provide the most convenient and lowest cost sources of working capital in India.” The combined entity will have more than 100 companies in India (200-plus globally) and over 125,000 businesses using the platform. New-age fintech businesses have been disrupting how businesses meet their banking needs.