Startup news and updates: Daily roundup (November 21, 2024)

Funding

CredFlow secures $3.7M in a Pre-Series B round from Inflexor, others

CredFlow, a Delhi-based fintech startup, has raised $3.7 million (Rs 31.2 crore) in a pre-Series B funding round led by Inflexor Ventures and a Singapore-based family office.

This funding will support the startup's growth in lending services, technological innovation, and the development of new products aimed at small and medium enterprises (SMEs).

Since its inception in 2020, CredFlow has positioned itself as a cashflow management platform, enabling SMEs to automate invoice collections, manage finances, and access real-time insights to optimise cash cycles.

With previous funding of $9.2 million across two rounds, CredFlow has already integrated $600 billion in invoices and captured 50% of India’s GST-registered businesses on its platform.

The new funding will further CredFlow's efforts to expand its embedded digital lending arm, CredFlow Finance, and move towards obtaining an NBFC license.

Healthy foods startup O4H raises Rs 1 Cr from IPV

Order for Health (O4H), a Bengaluru-based healthy-food startup, has raised Rs 1 crore in a seed funding round led by Inflection Point Ventures (IPV).

The funds will support O4H's expansion plans, including setting up a central kitchen and launching 11 new stores to strengthen its market presence and operational capacity.

Founded in 2020, O4H focuses on delivering fresh, nutritious, and sustainable meal options, offering salads, wraps, fit meals, and Mediterranean and pan-Asian-inspired dishes.

O4H claims to have gained over 100,000 loyal customers, earning a 4.5-star rating on Swiggy and Zomato. With Rs 6 crore annual revenue and over 13,500 monthly orders, O4H claims to serve 30% of Bengaluru's healthy food delivery market.

Other news

NowPurchase completes its first ESOP buyback

NowPurchase, a Kolkata-based B2B startup, has completed its first Employee Stock Option Plan (ESOP) buyback, valuing the shares at 100 times the initial purchase price.

The buyback included staff from all levels, ranging from warehouse employees to potential CXOs.

The ESOP buyback follows NowPurchase’s recent $6 million funding round, bringing its total funding to over $10 million. Investors including InfoEdge Ventures, Orios Venture Partners, 100 Unicorns, and other angel investors supported the initiative. Notably, many senior leaders, including Sachin Singh and Prateek Losalka, retained a significant portion of their ESOPs.

Founded in 2017, NowPurchase provides procurement solutions for metal manufacturers, including raw materials like metal scrap and additives.

Vegapay partners with Yes Bank to launch ‘Credit Line on UPI'

Vegapay has partnered with Yes Bank and NPCI to launch the ‘Credit Line on UPI,’ a hyper-configurable credit platform enabling instant access to credit via UPI apps.

Through this platform, Yes Bank can design tailored credit programmes, offering options like interest-free or interest-bearing credit and EMI-based repayments. The user-friendly dashboard and customisable app streamline integration for banks, focusing on efficiency and essential data collection.

Backed by $5.5 million in funding from Elevation Capital, Vegapay’s scalable technology can process thousands of transactions per second while adhering to stringent payment standards. Yes Bank, processing one-third of India’s digital payments, aims to further its leadership in UPI with this partnership.

Ascendion launches second AI studio in Hyderabad

AI-powered software engineering services company Ascendion has launched its second AI Studio in India, located in Hyderabad, following the recent opening of its Austin AI Studio. This expansion underscores the company’s commitment to driving AI innovation and delivering real-world solutions.

The Hyderabad AI Studio is built to demonstrate Ascendion’s “Engineering to the Power of AI” approach, enabling clients and engineers to collaborate in an interactive environment. The facility focuses on creating practical AI solutions that address real-world challenges, improve user experiences, and deliver measurable ROI across industries.

The Hyderabad AI Studio is a key step in Ascendion’s strategy to leverage innovation in India to drive AI-powered solutions globally, impacting lives positively through technology, it said in a statement.

Edtech startup Tutela Prep expands to US, Middle East

Test preparation and study abroad advisory services Tutela Prep has expanded to the United States and Middle East markets.

Founded in 2018, the company is dedicated to providing high school and college-bound students with advanced learning tools, including AI-powered adaptive test prep and personalised mentorship.

Tutela Prep has already supported thousands of students in India, achieving impressive outcomes, such as 78% of AP students scoring 4 or higher and 91% of SAT students surpassing 1400.

The expansion addresses the growing demand for accessible and effective test preparation in the US and Middle East, targeting high school juniors, seniors, and graduates preparing for postgraduate exams. Students in these regions will gain access to tailored online courses for SAT, ACT, and AP exams, offering individualised learning experiences powered by cutting-edge technology.

To support this initiative, Tutela Prep plans to establish local teams and hire over 50 certified advisors and instructors by December 2024. The company also aims to form strategic partnerships with educational institutions, projecting 50% annual growth and a tripling of enrollments by 2025.

(This article will be updated with the latest news throughout the day.)