Unlocking Growth for MSMEs: How CFO Centre’s Fractional CFO Services Can Transform Your Business

India, 11th February, 2025 : In India, the world of small and medium-sized enterprises (MSMEs) is full of promise. However, as businesses scale, they often encounter challenges that require a level of financial expertise that is usually reserved for larger corporations. This is where CFO Centre India steps in. With its unique model of fractional CFO services, it offers MSMEs the opportunity to access high-level financial leadership without the burden of hiring a full-time CFO. We spoke with Rajarshi Datta, the Managing Director of CFO Centre India, to explore how MSMEs can leverage fractional CFOs for strategic growth.

Rajarshi, can you start by telling us a bit about the CFO Centre and the value it brings to businesses in India?

Rajarshi Datta: CFO Centre Group, headquartered in the UK, is the world’s largest fractional CFO services company. We’ve been operating in India since 2015, and in that time, we’ve helped countless entrepreneurial businesses scale sustainably. In essence, we provide part-time CFOs to businesses that are too small to hire a full-time CFO but too big to manage their financials without expert help. Typically, these businesses have a turnover ranging from ₹5 crores to ₹1000 crores.

Our approach is not just about managing numbers. It’s about delivering real value. We aim to create more time, more money, and peace of mind for our clients. This allows business owners to focus on growth, knowing that their financial strategy is in expert hands.

What are the key challenges MSMEs face when it comes to managing their finances, and how does the CFO Centre address these?

Rajarshi Datta: There are several pain points, especially when MSMEs begin to scale. Rapid growth can overwhelm business owners, leading to cash flow issues or unmanageable complexity. Many businesses are also constrained by time and expertise, often leaving little room for strategic financial planning.

At CFO Centre, we provide a solution by offering seasoned CFOs who can step in on a part-time basis. This is incredibly cost-effective for MSMEs. Our CFOs can help businesses with everything from cash flow management and strategic planning to fundraising and IPO readiness. We offer a highly structured, holistic approach that is tailored to the unique needs of each business, ensuring that they have the financial foresight to navigate both opportunities and risks.

You mentioned that your services are flexible, but can you tell us more about the specific ways in which fractional CFOs can help MSMEs?

Rajarshi Datta: Absolutely. MSMEs often operate in a dynamic, fast-paced environment. A fractional CFO can step in when needed most, helping businesses with things like budgeting, forecasting, and cost management. We’re not just bookkeepers—we become part of the leadership team. By understanding the broader vision of the company, our CFOs contribute to shaping long-term strategies. They help business owners avoid costly mistakes by providing actionable insights based on real-time financial data.

For example, when a business is looking to raise capital or expand operations, a fractional CFO can support them in preparing for investor meetings or negotiating financing terms. With our network of 750 CFOs globally, we also bring industry-specific best practices that help businesses stay competitive. We don’t just provide financial leadership—we offer strategic guidance to ensure long-term growth.

So, for MSMEs that are growing rapidly, how do they know when it’s the right time to bring on a fractional CFO?

Rajarshi Datta: There are a few signs that indicate it’s time to bring in a CFO. First, if your business is experiencing rapid growth and your financials are becoming more complex, that’s a clear flag. Cash flow problems are another common sign. A fractional CFO can step in to streamline processes, optimize cash flow, and provide strategic financial planning.

Additionally, if business owners are spending too much time on day-to-day financial management and not enough on strategic growth, that’s another area where a CFO can provide tremendous value. Finally, if you’re looking to raise capital or expand into new markets, a fractional CFO will be key in crafting the right financial strategy and pitching it to investors.

With many MSMEs hesitant to take on the cost of a full-time CFO, how does CFO Centre make this model more accessible?

Rajarshi Datta: That’s a great question. One of the main advantages of working with CFO Centre is that our model is cost-effective and scalable. Rather than hiring a full-time CFO, you can access a high level of expertise on a part-time basis. Our services are flexible, so we tailor the level of support based on the specific needs of the business—whether it’s during a critical growth phase or for regular financial oversight.

Moreover, our team of fractional CFOs comes with deep industry expertise, and our global presence means that we can offer insights from around the world while staying grounded in the Indian market. For businesses that are ready to expand, we also provide access to a network of investors and lenders, which is crucial for securing the right type of funding. Essentially, you’re getting the expertise of a C-suite level professional without the associated cost.

You mentioned that the CFO Centre provides mentorship and interim services as well. Could you tell us a little more about that?

Rajarshi Datta: Yes, we recognize that businesses are at different stages of growth, and not every company needs a CFO for the same length of time. Our mentorship services are designed to help young business owners or newer CFOs develop the skills they need to manage their financials effectively. We provide guidance on everything from managing cash flow to financial modeling and strategic planning.

Our interim CFO services are also very useful for businesses going through a specific transition, like an acquisition or a period of rapid growth. These are moments when having experienced financial leadership can make a real difference. Our interim CFOs step in to manage the transition smoothly, ensuring that the business remains financially stable.

As you approach your 10th anniversary in India, what are your reflections on the journey so far, and what’s next for the CFO Centre in India?

Rajarshi Datta: The last decade has been both challenging and immensely rewarding. When we started in 2015, there was skepticism about the fractional CFO model. But today, we’ve seen how transformative it can be for MSMEs. Looking ahead, our goal is to continue expanding our reach and helping more businesses in India unlock their growth potential. We want to build a community of entrepreneurs who understand the power of strategic financial management, no matter the size of their business.

At the CFO Centre, we’re focused on continuous learning and innovation. We’re always looking for ways to improve our services and integrate new technologies that can drive efficiency and effectiveness. India’s digital transformation presents a huge opportunity for businesses, and we’re excited to be part of that journey, offering financial expertise and strategic guidance to businesses that are ready to scale.

Rajarshi, does CFO Centre only cater to MSMEs.?

Rajarshi Datta: No, we also work with start-ups, start-ups transitioning into an SME and also bigger corporates where they have a CFO but they use us as a killer app and secret sauce to their success 

In a world where businesses are constantly evolving, partnering with a fractional CFO could be the strategic move that propels your business to the next level. Whether you’re grappling with cash flow challenges, scaling rapidly, or preparing for an exit, CFO Centre India is here to help MSMEs navigate the complex financial landscape with expert guidance and a tailored approach.

Rajarshi, thank you so much for sharing your insights. It’s clear that fractional CFO services have a vital role to play in helping MSMEs grow and thrive in today’s competitive business environment.

Rajarshi Datta: Thank you for having me. It’s been a pleasure discussing how the CFO Centre can make a real difference in the lives of business owners. We’re excited to continue supporting MSMEs and helping them achieve long-term success.