India’s Goods and Services Tax (GST) reform has inspired several FinTechs to help SMEs handle the shift, with the latest being Vayana Network, a trade finance company.
On Monday (July 17) the company revealed about $4 million in new funding. The Series A investment was led by IDG Ventures India and Jungle Ventures, reports said, and follows previous fundraising led by Reliance Industrial Investments and Holdings, as well as other backers.
“This funding comes at an exciting time with GST driving a digital invoicing ecosystem in India and in the backdrop of increasing velocity for trade-based financing led by third-party platforms globally,” reflected Vayana founder and CEO R. N. Iyer in a statement. “Our mission from day one has been to focus on designing the simplest possible process for corporates of all sizes and from different industries to avail short-term financing for their buyers and suppliers.
“Our special focus on trad documentation has also enabled us to play an important role in GST regime,” the executive continued. “We plan on offering several value-added services for our clients to help them take advantage of the trade data.”
Vayana links buyers and suppliers to banks and other financial institutions to access financing for their own payables, or to find financing for their trading partners. The company partners with banks and Mastercard, reports noted, and offers a commercial card solution for businesses to finance their accounts payables.
So far the company said it has provided $400 million in financing to 180 business customers.
“Vayana Network has built a strong leadership position in the short-term trad finance space by bringing together the suppliers, buyers and the lenders on a single platform,” said IDG Ventures MD TC Meenakshisundaram in another statement. “With its role as a GSP, Vayana is in a unique position to bring the much-needed financing to the SMEs and help them grow faster.”
Reports said Vayana will use the capital to bolster its platform both within India and in new markets globally.
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