Economy

IFC & PayU invest INR 114cr in Vayana Network to increase formal trade credit to micro and small businesses

Vayana Network, India’s largest trade finance network, announced today that it has raised a further INR 114cr as part of its Series C funding from International Finance Corporation (IFC) and PayU, the Payments and Fintech business of Prosus. Vayana plans to use the funds to build products focused on helping MSMEs better manage their working capital and become credit ready.

Vayana Network as part of its Series C round had already raised INR 283cr from new and existing investors, including Marshall Wace, March Capital, Chiratae Ventures, CDC group, Jungle Ventures, and well-established family offices in India and abroad.

Sharing his views, Ram Iyer, Founder and CEO, Vayana Network, said, “To have the backing of global investment firms and financial institutions is a strong endorsement of our commitment to democratise small businesses and making them credit ready. While we are set to do more than USD 10 bn of trade financing in India alone this financial year, we are focusing on creating tools and infrastructure to help small businesses manage their working capital efficiently and sourcing trade finance at the most affordable rates. We will continue to build on our leadership role in public trade infrastructure including GST, e-Invoice and e-Way Bill and embedding credit for every business in the supply chain. FY 23 also will see the launch of Vayana ITFS (International Trade Finance Services) platform at GIFT City (Gujarat), which will enable exporters and importers access international trade finance facilities at competitive rates”

“IFC is a leading investor in financial technology, with an extensive portfolio in digital lenders and supply chain finance (SCF) platforms across emerging markets. By supporting the rapid growth of a key player in India’s digital SCF infrastructure, IFC will contribute toward increased data and financial integration, enabling better assessment of risk and provision of tailored financing,” said Wendy Werner, India Country Head at IFC. She added, “As a result, this will expand access to finance for MSMEs deep in supply chains while helping the MSME ecosystem emerge from the COVID-19 crisis on a more resilient footing.”

Vijay Agicha, Global Head of Strategy & Growth, PayU, said, “PayU & Vayana both share a common vision of democratising SME’s access to finance through technology. The collaboration between both companies will lead to multiple synergies with PayU’s merchant ecosystem, especially the SME transaction platform & SME lending portfolio. This investment is aligned with our ambition to capture the broader India SME credit opportunity. Vayana is led by a strong founder and a best-in-class team with deep expertise in supply chain financing. We are excited to partner with them and look forward to co-creating products to address the specific needs of our combined merchant base.”
Supply chain finance (SCF) in India is a $100 bn per month opportunity for financial institutions and 53% of organisations are underserved in terms of credit due to legacy systems and business models. As per World Bank estimates, Indian MSMEs alone face a $380 billion credit gap. Vayana serves a critical need by creating an ecosystem where financing is embedded in a transaction, digitally authenticated and trade credit is offered seamlessly, for every type and size of business in the supply chain.
About Vayana Network:
Vayana Network is one of India’s largest Supply Chain Finance platform in India, having enabled finance of over USD 10 Billion, including over a billion-dollar of finance through B2B card flows to over 1.5 lakh MSMEs for over 1000 supply chains in 25 different sectors. Vayana connects over 1000 corporates and their trade ecosystems to provide digital, convenient, and affordable access to credit for their payables and receivables. With its proprietary technology, Vayana has processed over 2 million transactions and offers a zero-change experience to customers. The network today spans across 600 cities and 1400+ pin codes in India and extends to 20 countries across the globe. The company is increasingly catering to the smallest of MSMEs in the long tail of the supply chains. Vayana is also one of the largest GSP (GST Suvidha Provider) in the country, facilitating, GST, E-Way bill and E-invoice for numerous corporates and lakhs of SMEs. The GSP platform has witnessed over 3 billion billion API calls in GST and e-invoicing, with zero downtime. Since its launch, 1 in 5 e-invoices have been generated through Vayana. In 2021, Vayana received in-principle approval to set up ITFS (International Trade Finance Services) platform at GIFT City (Gujarat) under the aegis of the International Financial Services Centres Authority (IFSCA).
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic.
A Prosus group company
PayU is the payments and fintech business of Prosus, a global consumer internet group and one of the largest technology investors in the world. Operating and investing globally in markets with long-term growth potential, Prosus builds leading consumer internet companies that empower people and enrich communities. Prosus has a primary listing on Euronext Amsterdam (AEX: PRX) and a secondary listing on the Johannesburg Stock Exchange (XJSE: PRX) and is majority owned by Naspers.

This article was shared with Prittle Prattle News as a Press Release.

Must read – MTR Foods drives a multi-channel

Follow Us: Facebook Instagram | Twitter YouTube | LinkedIn Pinterest Tumblr

Related Posts

1 of 185