Software-as-a-service (SaaS) and tax filing firm Clear closed an acquisition deal for supply chain finance startup Xpedize for undisclosed terms, according to a press release on Wednesday (March 16).
The purchase marks Clear’s move into credit for small- to medium-businesses (SMBs) and business-to-business (B2B) payments. The acquisition will also help Clear scale fast and cement its leadership in the invoice discounting space by offering supply chain financing to its customer network.
Under the purchase agreement, Xpedize will be rebranded as Clear Invoice Discounting and will provide working capital and liquidity to suppliers. It is expected to process 10 billion rupees ($131 million) GMV annualized by the end of the fiscal year 2022.
Headquartered in Bengaluru, India, and founded in 2011 by CEO Archit Gupta, Srivatsan Chari and Ankit Solanki, Clear is India’s largest FinTech SaaS company. The company strives to simplify the finances for Indian businesses and individuals and is used by over 5 million taxpayers in the country, 1 million tax practitioners, 600,000 SMBs and 2,000 large businesses and brands.
“This acquisition is important for us as we strive to make supply chain financing programs with large enterprises successful. A large chunk of businesses in India uses our GST compliance suite, and these customers will reap the benefits of the network effect. Higher supplier participation, zero overheads for enterprises and better discount rate discovery are our three focus areas to disrupt this space,” said Gupta.
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-enabled supply chain financing. Its team of more than 25 will be folded into Clear and will continue to run the invoice discounting product.
“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,” Gugnani and Mithani said.
Read more: Software Provider Clear Unveils SMB Invoice Discounting Product
Last month, Clear launched an invoice discounting product for its existing customers. It will soon integrate with more banks and non-banking finance companies to ensure a robust supply of credit to a wider supplier base.