Software-as-a-service (SaaS) and tax reporting company Clear has reached an acquisition agreement for a supply chain finance startup Xpedize for undisclosed durations, according to a Press release Wednesday (March 16).
The purchase marks Clear’s move to credit for payments to small and medium-sized enterprises (SMEs) and businesses (B2B). The acquisition will also help Clear scale rapidly and solidify its leadership in the invoice discounting space by offering supply chain financing to its network of customers.
Under the purchase agreement, Xpedize will be rebranded as Clear Invoice Discounting and will provide working capital and liquidity to vendors. It is expected to process 10 billion rupees ($131 million) annualized GMV by the end of fiscal 2022.
Based in Bangalore, India, and founded in 2011 by CEO Archit Gupta, Srivatsan Chari and Ankit Solanki, Clear is the largest SaaS FinTech company in India. The company strives to simplify finances for Indian businesses and individuals and is used by over 5 million taxpayers in the country, 1 million tax practitioners, 600,000 SMEs and 2,000 large companies and brands.
“This acquisition is important to us as we strive to make supply chain finance programs successful with large enterprises. A large number of companies in India are using our GST compliance suite, and these customers will reap the benefits of the network effect. Increased vendor participation, zero overhead for businesses, and better discovery of discount rates are our three priority areas for disrupting this space,” Gupta said.
With Xpedize, Clear will also move faster towards enabling payments and efficient financing for Indian businesses, Gupta added.
Based in Gurugram, India, and founded in 2017 by former Citibank executives Regan Mithani and Deepak Gugnani, Xpedize offers technology-based supply chain finance. Its team of more than 25 people will be integrated into Clear and will continue to manage the bill discounting product.
“With the acquisition of Clear, we will continue to focus on the success of our customers, and our approach will be entirely customer-centric. We are excited about Clear’s culture and excited to produce the best Indian products for businesses around the world,” Gugnani and Mithani said.
Read more: Software provider Clear unveils invoice discounting product for SMBs
Last month, Clear launched a bill reduction product for its existing customers. It will soon integrate with more banks and non-bank finance companies to ensure a strong credit offering to a wider supplier base.