The business-to-business sector is eagerly catching on to the on-demand and mobile services economy. The market is young and at present offers mostly basic services, like catering or enterprise-specific taxi and travel tools.
But one India-based startup is bringing the B2B on-demand market to a whole new level and has just secured the funding to do it. Reports published Monday (June 29) revealed Mumbai-based financial services startup MyCFO has secured nearly $1.5 million in funding from ASK Group promoter Sameer Koticha, according to unnamed sources at The Economic Times of India.
The investment backs a company that offers financial guidance, planning and management to other businesses that have yet to establish a chief financial officer. In other words, it offers a CFO on demand.
“The deal is a validation of the concept of CFO and financial effectiveness services,” said one anonymous source. “It also puts MyCFO [in] a distinct league and helps get ahead of competition.”
MyCFO provides an array of FinServ solutions, including budgeting and cash flow management. It also offers an Interim CFO service, which manages businesses’ finances while in search of their own, permanent CFO. While the firm has already built an extensive list of business clients since its 2006 founding, including members of the automotive, eCommerce and health care sector, this is a Series A funding round for the company.
According to reports, the firm is in the midst of developing new software that will automate many financial management services for companies. MyCFO is seeking partnerships in the SaaS market to help cut costs for both the company and its clients. The funding will reportedly also be used to expand into new markets in the West and to expand its team of finance professionals; reports said the company already has a team of 135.
While an on-call CFO may seem like a groundbreaking concept, it is actually in line with the popular B2B on-demand service of hiring temporary workers. But on-call temp staffing is more often used for less specialized services, unlike MyCFO, which offers a temporary executive-level management tool.