Clear acquires compliance risk management startup CimplyFive

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Fintech software-as-a-service (SaaS) startup based in Bangalore Clearformerly known as Clear Taxannounced the acquisition of the compliance risk management automation platform CimplyFive. The product will be part of its software suite for CFOs.

According to sources, the deal is estimated at valued at close Rs 75 billion, and Clear said in a statement that it was an all-cash deal. With the acquisition, the team of 20 people at CimplyFive, including founder Shankar Jaganathan, will be integrated by Clear. Shankar will continue to lead CimplyFive, which was founded in 2014, as an independent platform.

This is the fintech’s second acquisition this year. In March 2022, Clear announced the acquisition of supply chain finance company Xpedize for nearly Rs 100 crore. CimplyFive also marks Clear’s fourth acquisition to date, which previously acquired YBANQ in 2021 and Karvy’s GST business in 2020.

“Serving the CFO’s office, we discovered that company secretaries are deeply underserved. These entities must maintain multiple records and, in the case of listed companies, they must make LODR-related disclosures to SEBI, among others. It happens in a broken system,” said Archit Gupta, Founder and CEO of Clear. Your story.

In its second acquisition this year, Clear has taken over CimplyFive

He added that nearly 80 to 90 percent of Clear’s revenue came from business-to-business (B2B) offerings, which included enterprises and small and medium-sized businesses. CimplyFive brings with it a customer base of More than 100 companies in addition to Clear’s almost 5,000 corporate clients.

“Over the past two and a half years, we have doubled our business activities. There is better retention and the needs are greater,” said Archit. The company also plans to build on its personal wealth management product over the years as the business vertical approaches EBITDA positivity.

He further added that the company is not looking to raise additional equity and may make acquisitions of start-ups or those led by good products with a strong customer base.

Clear last raised $75 million in a Series C round in October 2021 led by Kora Capital, Stripe, Alua Capital and Think Investments. In total, the company raised $140 million in equity and is valued between $700 million and $800 million, according to reports.

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