- Hi, I’m Amit Tiwary. As CFO at Happilo, a Bengaluru-based snacking brand, I helped raise $47.9M.
- In 2023, I saw the booming Virtual CFO market, where even small firms earn $1-2 million annually.
- So in 2024, I launched ProCFO to provide Virtual CFO services to startups and MSMEs.
- Here’s how I made the transition.
Backstory
In 2008 I qualified as a Chartered Accountant (CA) and began my career as a management trainee at JSW Steel, an Indian multinational steel producer with over $20 billion in revenue.
The finance team there was massive, with over 150 professionals, including more than 100 CAs.
Initially, I was assigned a traditional accounting role, but I realized that I am more passionate about being part of the business aspects of an organization. So, I transitioned to a business role.
Two years later, I got an opportunity with Coca-Cola, moving from manufacturing to FMCG. It was a conscious decision to delve into business finance, reporting, MIS, and financial planning.
I never stuck to a single role, whether at JSW Steel, Coca-Cola, or AstraZeneca, and that diversity propelled my growth.
Working in multiple roles at any given time broadened my experience and skills.
Within just 11 years of starting my career, I became the CFO of Nissin Food’s India business, a Japanese food company.
I thrived in this role, managing a large team and making significant contributions to the business.
In 2022, I joined Happilo, a Bengaluru-based healthy gourmet snacking brand, as CFO. Happilo was launched in 2016 and has raised $47.9M over three funding rounds from three investors.
At Happilo, I often worked 15-16 hours a day, thriving on the intense engagement and dedication.
My responsibilities expanded from finance to include IT, legal, company secretarial duties, and even distribution. The exposure I gained was incredible.
I remmember my wife asking me, “Don’t you have anyone else in your business to help out? Why are you doing everything yourself?”
But I find immense pleasure in impacting and growing these businesses myself; it keeps me going.
All was going great when…
…Spotted a golden business opportunity!
In 2023, during my stint with Happilo, I realized that startups and MSMEs have unique challenges.
Thus I was actively involved in supporting many new entrepreneurs and startups in my community on a Pro Bono basis.
One day, a friend who is a startup founder came to me with some tricky business problems, and I helped him navigate through them. It was so rewarding to see him overcome those challenges.
He then asked me, ‘Why don’t you charge for this advice?’
It was like a lightbulb moment but I did not jump in right away though. Instead, I did some research and this is what I observed:
Growing opportunities in MSME space
India has a staggering 65 million MSMEs. They are already powering 40-45% of our economy.
But
if we want our economy to go from $3.5 trillion to $7 trillion, these MSMEs have to scale.
Finding top talent is a challenge
Early-stage startups face many challenges but one of their biggest struggles is finding top-notch finance talent, that can add value to the business and help it skyrocket to the next level.
I have seen some businesses getting stuck in the loop of that same turnover, unable to grow for years, for one reason – the lack of an adept finance head or CFO.
Can’t afford full-time CFO
CFOs come with a hefty price tag – we are talking Rs. 1.5 to Rs. 2 crores.
Also, these startups can’t quite afford a full-time CFO who can truly transform a business.
So, I thought, why not offer them the CFO expertise they desperately need, but in a way, they can afford it?
Also read: This CFO quit the corporate world to enter the Outsourced CFO space. Here are his learnings.
But should I leap?
I knew the opportunity was massive but the ‘how’, ‘when’, and ‘what’ was still hazy.
Then I came across an interview at The Finance Story, where a Chartered Accountant named Kavita Tapdiya Chakraborty set up an offshore accounting business that scaled to a team of 200+ and a $ 3 million-dollar business.
That’s when I thought, ‘You know what? It’s time. Let’s do this!’
I reached out to friends, family, and my community for their input. And they were all so supportive.
But I knew it might seem foolish to step down as a CFO abruptly at a startup that was valued at $176M.
What next? I met a lot of people, knowing that in our business, work primarily comes through referrals. And referrals are built on trust.
So, over the past year, I focused on establishing that essential trust to grow our business.
I was working to build a clientele and helping several startups and MSMEs.
This strategy really helped me.
Official launch in 2024
Finally in April 2024, at the peak of my career, I stepped down from my CFO position.
And created ProCFO, to provide Virtual CFO services, Startup Advisory, and Finance Process & Strategy.
Location
We are headquartered in Bangalore. At the moment, we can manage our current projects remotely.
Technology is enabling us to handle many aspects of our business efficiently. But as opportunities grow, we will be ready to open up a physical presence in Bangalore and other cities.
Team building
I have already put together an amazing team who is helping to serve our clients.
Given the amount of work we have on our plate right now, I could handle it solo, or with just a small, dynamic team of two or three people.
Acquiring clients
Other than Bangalore, we have clients in Gurgaon and the NCR region.
As mentioned, I already created a lineup of clientele. In our line of work, it’s all about referrals, and those referrals… come from trust.
I initially set a benchmark to work with companies having a top line of Rs. 25 crore and above.
But still, a business owner insisted, “No, no, no! I want you to work with me!”
Turns out he had been stuck at the same turnover for four years and I knew something was significantly wrong. I uncovered many complications that he had unknowingly created in his books, business, and operations.
I have been working with him for about 4-5 months now, and he is already starting to see traction.
This year, he is targeting to double his revenues compared to what he was doing before.
Also read: Left my full-time job to become a Fractional CFO on Toptal: You can earn 3 to 10 Times Your Salary!
Growing Virtual CFO market
The Virtual CFO market is witnessing an upturn, worldwide.
Even the smallest firms in this space are raking in $1 to $2 million just from offering strategic financial services: from operational finance to strategic planning, and even venturing into investment banking.
Some firms are focusing solely on Financial Planning and Analysis (FP&A), and they are still pulling in $2 to $3 million in revenue.
And guess what? This isn’t just a global phenomenon.
In India, I have connected with professionals who have been in this domain for 7 to 8 years, for advice. They have been incredibly generous, dedicating their time and mentoring me.
The opportunities in this field are simply staggering! People are becoming more and more aware of this field.
I really want to work with ICAI to promote Virtual CFO practices as a viable career path for every new CA. Just like how practicing or taking up a job are current options, Virtual CFO should be a clear choice from day one.
We as professionals are also trying to educate businesses about the benefits of hiring Virtual CFOs.
Wrapping up
In terms of our plans, over the years, I envision recruiting around 500 individuals like myself, each with 15 to 20 years of experience as I want us to scale.
We have been profitable since day one, and my broader vision is to generate over Rs.10,000 crores in revenue.
Sounds overly ambitious, right?
I know good things take time and I am prepared to invest the necessary time and effort to make it a reality.
