Trade finance platform Vayana Network raises $15 million from IFC and PayU

Bangalore: Trade finance platform Vayana Network has raised Rs 114 crore (about US$15 million) in an extension of its ongoing fundraiser led by International Finance Corporation (IFC) and PayU, the fintech arm of Dutch multinational Prosus.

The company has thus completed its latest fundraiser of Rs 397 crore (about US$52 million).

Vayana Network raised Rs 283 crore (about US$37 million) last November from new and existing investors including Marshall Wace, March Capital, Chiratae Ventures, CDC Group and Jungle Ventures, among others.

It plans to use the funds to double its offering to micro, small and medium-sized enterprises (MSMEs).

Founded in 2016 by Ramaswamy Iyer, Vayana Network provides trade finance to suppliers and small businesses in the automotive, fast moving consumer goods (FMCG) and manufacturing industries, among others.

The company is also a GST Suvidha Provider (GSP), enabling GST, E-Way Bill and online billing for businesses and MSMEs.

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“We remain bullish on our expansion and will now continue to focus on MSME lending to delve deeper into trade finance… We have also been licensed for international trade finance and will provide credit for both export and import use cases.” Iyer told ET about the company’s growth plans.

“This fiscal year, we will launch Vayana ITFS (International Trade Finance Services) platform in GIFT City (Gujarat), which will enable exporters and importers to access international trade finance opportunities,” added Iyer.

The startup makes loans through its bank and non-bank financial partners. Last month it disbursed Rs 5,500 crore in trade finance to small businesses and plans to scale monthly disbursements to Rs 7,800 crore by June.

The company is also targeting to reach $12 billion in annual payout volume by the end of FY23. Vayana has partnerships with 70 major companies and has so far provided credit to nearly 150,000 small businesses with two million transactions. The average size of these loans is Rs 4-5 lakh, with an average repayment period of 90 days.

The Pune-based company also operates in the US and Singapore. There are plans to set up an office in Dubai to penetrate the Middle East region. It also aims to provide domestic trade financing to suppliers in the U.S., which continues to be big white space for the company’s growth, Iyer said.

Last October, cross-border trade finance startup Drip Capital raised $40 million in equity from San Francisco-based TI Platform, with existing investors such as Accel, Sequoia, Wing VC, Irongrey and GC1 Holdings also participating in the round.

ET reported on March 23 that Oxyzo Financial Services, the supply chain finance arm of SoftBank-backed business-to-business (B2B) commerce startup OfBusiness, has completed its first $200 million in outside funding An Indian startup has raised the largest Series A financing of all time.

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