Recordent, a fintech startup that launched in 2020 addresses the critical issue of late payments for small and medium-sized enterprises.
In an interview with Avni Raja on the "Start Up to Scale Up" show, co-founder and CEO, Winny Patro, shared the inspiring journey and innovative solutions offered by Recordent.
Winny Patro, a seasoned entrepreneur with a background in social enterprises and B2B startups, identified late payments as a major bottleneck hindering SME growth. "Late payments create significant cash flow challenges, making it difficult for SMEs to focus on growth," Patro explained. The pain point led to the inception of Recordent, aiming to alleviate these financial strains.
Recordent offers an end-to-end software solution that automates the entire receivable cycle. From providing credit and following up on payments to issuing legal notices if payments are overdue, Recordent leverages technology and data analytics to streamline these processes. "Our platform automates everything, even sending legal notices with just a few clicks," Patro highlighted.
Since its pilot launch in 2020, Recordent has grown significantly. "We now have about 70,000 businesses on our platform, including 11,000 sellers and 60,000 buyers," shared Patro. The platform's primary users span sectors such as construction, food and beverages, and textiles.
Looking ahead, Patro envisions Recordent transforming the payment landscape in India by instilling accountability and timely payments. "We aim to support 100,000 businesses in the next five years and five lakh SMEs in ten years," he stated. However, challenges remain, particularly in convincing SMEs to adopt and implement new technologies. "There's a significant bottleneck due to the limited bandwidth and resources within SMEs," Patro acknowledged.
Recordent has garnered substantial financial backing, with approximately ₹15 crore invested, including contributions from IIM Calcutta Innovation Park and various family offices. Currently, Recordent is pursuing additional funding rounds to further scale its operations.
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