IFC To Invest In Trade Financing Startup Vayana Network
International Finance Corporation (IFC) said it is planning to invest $8 million (Rs 59.4 crore) in Vayana Network, a supply chain financing platform. As per IFC, the investment will help Vayana strengthen its operation across the technology network to offer supply chain financing solutions.
Started in 2017 by Ramaswamy Iyer, Vayana Network is an electronic network that connects SMEs, corporates and their supply chains to financial institutions for easy, quick and low-cost access to trade financing of their payables and receivables.
With its network spanning across 600 Indian cities, the trade financing startup also claims to be one of the largest goods and services tax (GST) providers in the country and facilitates GST, e-way bills, e-invoices for many corporates and SMEs.
Vayana Network | Low-cost Finance For The Entire Supply Chain
Not only the supply chain financing platform facilitates access to capital but is working towards making MSMEs credit ready through its GST compliance and analytics business. With plans of expansion to more countries soon, the trade financing startup is currently present in the US, Thailand, Malaysia, Vietnam, Singapore, and Indonesia.
In November 2021, Vayana Network raised Rs 283 crore in a Series C funding round led by Chiratae Ventures, CDC Group, Jungle Ventures, March Capital, Marshall Wace, and some family offices in India and abroad.
The startup claimed to have facilitated $8 billion in loans to over 22,000 MSMEs for over 1,000 supply chains across 25 different sectors so far. Its compliance business holds over 20% of the market share in e-invoicing in India and helps businesses lower their credit costs by over 50%.
International Finance Corporation has an active LP (limited partner) portfolio in India, and as a country, is IFC’s largest client globally.
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