The Client: QuantumLeap Logistics
QuantumLeap Logistics is an AI-driven, third-party logistics (3PL) startup aiming to disrupt the fragmented and inefficient Indian logistics market. Founded by two supply chain veterans, their platform promised to optimize fleet management, reduce transit times, and provide real-time tracking for enterprise clients. While they had secured early traction and a strong product, their growth had started to plateau. They were facing the classic startup dilemma: how to scale without breaking the bank.
The Challenge: Navigating the Cash Flow Maze
QuantumLeap's business model involved long payment cycles. They had to pay their fleet partners within 15 days, but their enterprise clients often paid on 60 or 90-day terms. This created a severe cash flow gap that was hampering their ability to take on new, larger contracts. Their financial reporting was basic, managed on spreadsheets, providing little forward-looking visibility. The founders were spending more time managing cash flow crises than on strategy and sales.
Key Challenges:
- Working Capital Deficit: A 45-75 day cash flow gap that limited operational capacity.
- Lack of Financial Visibility: Manual, retrospective reporting made proactive decision-making impossible.
- Inability to Secure Funding: Without clear financial models and a strategic plan, conversations with potential investors and lenders were going nowhere.
- Founder Burnout: The founders were bogged down in day-to-day financial management instead of focusing on growth.
The Solution: Nexa Consultancy's Virtual CFO Engagement
QuantumLeap engaged Nexa Consultancy for our Virtual CFO services. Our goal was to transform their finance function from a reactive administrative burden into a proactive, strategic engine for growth. Our engagement was structured in three phases:
Phase 1: Diagnosis and Stabilization (Months 1-3)
Our first priority was to get a clear picture of the company's financial health and stabilize the immediate cash flow crisis.
- Financial Cleanup: We migrated their accounts from spreadsheets to a professional accounting system, cleaned up historical data, and established a proper month-end close process.
- Cash Flow Forecasting: We built a rolling 13-week cash flow forecast. This gave the founders their first-ever clear view of their short-term liquidity, allowing them to anticipate cash needs instead of reacting to them.
- Working Capital Strategy: We analyzed their receivables and payables. By negotiating slightly better payment terms with a few key clients and exploring invoice discounting facilities, we were able to immediately reduce the cash conversion cycle by 15 days.
Phase 2: Building the Growth Infrastructure (Months 4-9)
With the immediate fires put out, we focused on building the systems and processes needed for scalable growth.
- MIS & KPI Dashboard: We developed a custom Management Information System (MIS) dashboard that tracked key operational and financial KPIs in real-time. This included metrics like Cost Per Shipment, Fleet Utilization Rate, and Gross Margin per Lane. For the first time, the founders could see the profitability of each contract and make data-driven pricing decisions.
- Budgeting and Forecasting: We implemented an annual budgeting process and linked it to the financial model. This allowed for detailed budget vs. actuals analysis, helping to identify areas of overspending and operational inefficiency.
- Fundraising Preparation: With clean financials and a robust model, we began preparing for a fundraise. We helped craft a compelling narrative around their operational efficiency and growth potential, supported by solid data. We developed a detailed financial model and a professional pitch deck.
Phase 3: Strategic Execution and Fundraising (Months 10-18)
In the final phase, we acted as a true strategic partner, helping QuantumLeap execute its growth plan and secure funding.
- Investor Roadshow: Leveraging our network, we made targeted introductions to VC firms specializing in logistics and SaaS. Our team supported the founders in every pitch meeting, confidently speaking to the financial model and growth strategy.
- Due Diligence Management: When a term sheet was offered, we managed the entire due diligence process. Our well-organized data room and clean financials made the process smooth and efficient, building strong trust with the investor.
- Closing the Round: We assisted in the negotiation of the final terms, ensuring the deal was structured favorably for the founders. QuantumLeap successfully closed a ₹25 crore Series A round.