US-based fintech firm C2FO, which operates a marketplace that provides working capital to companies and counts India as its fastest-growing market, has acquired payment platform Priority Vendor.
The acquisition will enable C2FO to strengthen its position in the working capital segment and offer its customers more flexible and convenient solutions than before, the company said in a statement. It didn't specify financial details of the deal.
“C2FO services and supplier-led pricing model fully complement Priority Vendor’s unique digital financing solutions built exclusively for Indian businesses,” said Pradeep Gode, country head for India at C2FO.
The statement said that the transaction will enable C2FO and Priority Vendor’s combined network of more than 200 companies to enhance returns on liquidity and strengthen the supply chain system.
Noida-based Priority Vendor Technologies Pvt. Ltd was set up in 2014. It claims that its discounting solution enables suppliers to access liquidity at competitive rates by giving cash discounts on approved invoices. This helps clients increase returns and helps their suppliers in a risk-free, automated and large-scale manner.
The company had raised Series A funding from Lightspeed India Partners and Catamaran Ventures last year.
“Collectively, we will facilitate the most affordable on-demand funding for Indian suppliers and the only risk-free, high-yield investment option for corporates in one single platform,” said Kunal Agrawal, co-founder of Priority Vendor.
C2FO says India has emerged as the fastest-growing market for its online marketplace. It claims that more than 125,000 businesses in India use its working capital solutions to manage cash flow and receive over $1 billion in funding every week.
C2FO has grown to match over $1.2 trillion of accounts receivable and accounts payable globally. In the last four years, C2FO has recorded 300% year-over-year adoption rates from businesses in India and expects that this growth rate to continue over the next five years.
C2FO recently raised $200 million in a round led by SoftBank Vision Fund. It also counts Temasek and Union Square Ventures among its other backers.