- IFC, PayU invest Rs 112 crore in Trade finance startup Vayana Network in Series C round to boost formal trade credit for MSMEs.
- The company raised the sum of Rs. 283 crore from both existing or new investors. The latest fund amount is 397 crore. 397 crore.
20th April in 2022. Vayana Network, a Trade finance startup that was in their Series C round, had already received more than Rs 283 crore from both existing or new investors which includes Chiratae Ventures, Marshall Wace, Jungle Ventures, March Capital, CDC group, and established family offices in India as well as abroad. The latest round totals 397 crore.
In the statement, Ram Iyer, Founder and CEO of Vayana Network, said that Vayana Network is launching the Vayana ITFS (International Trade Finance Services) platform in Gift City (Gujarat), which will allow exporters and importers to get access to international trade financing services at affordable and competitive prices. ” Vayana ITFS (International Trade Finance Services) will be available in Q1FY23 by the end of the year,” Ram Iyer said.
Since the platform is located in GIFT City SEZ, this is able to open the market to any financial institution or bank anyplace in the world. International lenders can now offer loans through the platform. Small and medium-sized enterprises can avail loans through the ITFS platform at a rate of around 12 percent less that the current 18-35 percent rate which they pay currently.
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“The backing of international investment firms as well as financial institutions provides a solid endorsement of our efforts to increase the accessibility of small-scale businesses and funding these businesses,” Ram Iyer said.
Wendy Werner, Country Head of India at IFC stated that IFC was supporting the rapid growth of major players in India’s financial infrastructure for supply chain IFC could increase the quality of data and financial integration as well as improve risk assessments and provide the appropriate funding.
Vijay Agicha, global head of strategy and growth at PayU The two companies wanted to increase SMEs access to financial services by leveraging technology.
The collaboration could result in numerous synergies between PayU’s merchant platform, including the transaction platforms and SME portfolios of lending He said.
Vayana Network also plans to make use of the funds to develop products that help small and medium-sized enterprises effectively handle their capital, as well as finding business finance at lowest cost.
Vayana Network has so far provided more than $10 billion in financing across the country. It has also processed more than 2 million transactions across 500 cities as well as 1,400 pin code. Vayana Network ‘s FY22 distribution at 30,000 crores has been exceeded.
The platform has 17 banks as well as NBFCs that are on its platform , and six more will be joining soon. Vayana is also among the biggest GST service providers across the nation, providing GST, e-way billing , and electronic invoices for corporations and thousands of SMEs.