C2FO Strikes AR Financing Acquisition In India

Alternative small business lender C2FO has announced an acquisition aimed at strengthening the company’s position in the early payment discount and trade finance space.

Reports in the Economic Times of India this week said C2FO, which is based in both the U.S. and India, reached a deal to acquire dynamic discounting firm Priority Vendor Technologies. The companies did not disclose financial terms of the agreement.

Priority Vendor deploys machine learning and artificial intelligence (AI), integrating with businesses’ existing ERPs to connect buyers and supplies to early payment and dynamic discounting programs, as well as supplier financing.

In a statement provided to the Economic Times of India, C2FO India Head Pradeep Gode said the takeover will allow C2FO to step into the invoice financing space.

“We will introduce accounts receivable financing solutions and data-driven funding options for our customers,” he said, adding that the $200 million raised from the SoftBank Vision Fund earlier this year helped support C2FO’s expansion ambitions.

“The Indian market currently accounts for 5 percent of total business,” he added. “With this acquisition and our growth initiatives, we expect to double share in the next few years.”

According to reports, C2FO is also exploring the launch of some of its other B2B financing solutions in India as well.

Gode also pointed to the “crossover” between the C2FO and Priority Vendor platforms, which will allow for a more holistic experience for joint clients.

“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,” he said. “Our strategy continues to provide the most convenient and lowest-cost sources of working capital in India.”

C2FO had previously secured $100 million in funding from Allianz X and Mubadala Investment Company, as well as a range of existing investors. At the time, the company said it would use those funds to finance secondary share purchases and global expansion.