Another fin-tech startup gets into fund raising. MyCFO, a startup which lets startups and SMEs manage their finances in the absence of an expensive CFO hire, has raised $978K in Series A Round from ASK Group promoter Monik Koticha along with the participation of other undisclosed investors.
The funds raised in this round will be used for team expansion by roping in new senior professionals. It is also planning to expand its reach to other geographical locations and to invest in technology to productise its services. Further ahead, MyCFO is looking forward to partner with software providers in order to create packaged solutions for automating a few tasks, which could ultimately help in accelerating delivery time.
The Mumbai-based company was established in 2006 by S. Venkat and Deepak Narayan. It offers budgeting, cash flow management and ERP implementation services, thus acting as a workable replacement of a CFO.
It aims to bridge the gap between demand for high quality finance services for high growth companies and the inadequate supply of such services at the right levels of ownership, quality, timelines with the company’s vision/plans.
Most startups, during initial funding rounds, are unable to get the right financial services, largely due to two main reasons — either these services are expensive — or those available at reasonable prices aren’t quality ones.
For larger enterprises and organisations, MyCFO is offering a service called interim CFO through which it helps firms manage transition periods while it scouts for a CFO during the departure of the previous one. This basically means outsourcing CFO’s tasks to the company.
The CFO related services offered by the company include strategy development, 5 years business plan development, 1 year budget planning, fund raising, support for making important business decisions, assistance in making a deal, etc. These services are crafted keeping startups and mid-sized companies in mind.
Its finance effectiveness service for the larger Indian companies to multinational companies includes Business Performance Improvement, Business Process Rendering, Finance Organization Structure, support for mergers and acquisitions, support for operations, etc. My CFO offers service to companies across all verticals, be it family owned, or is private equity/ venture capital backed, listed, Indian subsidiary of a multinational or in the social impact space, it has professionals to help you.
As the India start-up scenario is currently on surge and probably require the most financial help today, almost half of MyCFO’s revenues come from startups and other private companies who are looking for private equity investment.
It is currently operating in a few major cities of India, which includes Mumbai, Delhi, Bangalore, Hyderabad, Pune, Chennai and Coimbatore. The company has over 130 people working at its offices in different regions.
Deepak Narayanan and Venkat, co-founders of the company, said,
The funding is significant as we are the first company in this space ever to have raised funding. We believe we have the right partners to take this business to the next level.
Monik Koticha, founder- promoter of ASK Group, said,
We see tremendous potential for MyCFO’s tried and tested unique business and delivery proposition among high growth companies looking to build scale and size through best in class Finance practices.