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Fintech SaaS company Clear (earlier known as ClearTax) has announced the acquisition of supply chain financing technology firm Xpedize. This is Clear’s second acquisition after taking over Ybanq – another B2B payments platform. With this, Clear will move forward in its plan to enter SME credit and B2B payments. The company has not revealed the transaction amount. 

The Xpedize platform, now to be rebranded as Clear Invoice Discounting, delivers access to instant working capital and liquidity to suppliers. It is projected to process around 1,000 crores GMV annualised by the end of FY22. 

Also read: Clear launches crypto taxation and optimization service

Clear Invoice Discounting

The smart artificial intelligence-machine learning-based platform connects to ERPs and enables the suppliers to select a discount rate that is mutually acceptable to the suppliers and their SME customers. 

With this, enterprises not only earn an additional yield on their treasury cash, but can also digitally-manage supplier payments with seamless ERP integration and pay early using a range of financing options -- treasury cash, bank credit line, or TReDS marketplaces.

“Indian businesses need access to faster payments and efficient financing. While consumer payments have become real-time thanks to UPI, we believe much can be done for the suppliers to larger companies. This acquisition speeds up our journey towards enabling these two lifelines for Indian businesses," said Archit Gupta, Founder and CEO, Clear.

He said a separate vertical in Clear will encompass all its technology-enabled financial services and help it quickly scale to serve millions of suppliers.

“This acquisition is important for us as we strive to make supply chain financing programs with large enterprises successful," said Gupta.

In October 2021, Clear raised $75 million in Series C funding led by a series of investors including Kora Capital, Stripe, Alua Capital, Think Investments, and existing investors.

Also read: Clear eyes global expansion after $75 mn fundraise

3,000-plus customers to benefit

The invoice discounting solution will be available to Clear’s existing 3,000-plus enterprise customers. By providing working capital solutions to the vendors of their enterprise customers, Clear is targeting to achieve $3 billion throughputs by FY24. 

All about Xpedize

Xpedize is led by ex-Citibank corporate bankers Regan Mithani and Deepak Gugnani and was funded by marquee investors including HDFC Capital and YourNest Venture Capital. The 25+ member team of Xpedize will continue to run the invoice discounting product and expand into other opportunities within Clear.

“With Clear’s acquisition, we will continue to focus on customer success and our approach will be fully customer backward. We are enthused by Clear’s culture and we are excited to make best-in-class products from India for enterprises around the world," said Deepak Gugnani and Regan Mithani, founders, Xpedize.

 

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