PayU and IFC invest Rs 114 cr in trade finance platform Vayana Network

Mr.Ram Iyer, Founder and CEO, Vayana Network

Trade finance platform Vayana Network announced on April 20 that it has raised Rs 114 crore in Series C funding from International Finance Corporation (IFC) and Fintech company PayU.

Earlier in November 2021, the platform had raised Rs 283 crore as part of its Series C round from various new and existing investors, including Marshall Wace, March Capital, Chiratae Ventures, CDC group, and Jungle Ventures among others.

Also Read: Vayana Network raises Rs 283 crore in Series C funding round

Founded in 2017 by Ram Iyer, who also leads as the company's Chief Executive Officer, Pune-based Vayana plans to use the funds to build products focused on helping MSMEs (Micro, Small, and Medium Enterprises) better manage their working capital and become credit ready.

“While we are set to do more than $10 billion 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,” said Iyer. “FY23 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.”

The Supply Chain Finance platform claims to have enabled finance of over $10  billion, including over a billion-dollar through B2B card flows to over 1.5 lakh MSMEs. The network today spans 600 cities and more than 1400 pin codes in India. In addition, it also extends to 20 countries across the globe.

“By supporting the rapid growth of a key player in India’s digital SCF (Supply chain finance) 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.

Further, Vijay Agicha, Global Head of Strategy and Growth, PayU, said, "PayU & Vayana both share a common vision of democratising SME's (Small and mid-size enterprises')  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."

As per World Bank estimates, Indian MSMEs alone face a $380-billion credit gap. Supply chain finance in India is a $100-billion per month opportunity for financial institutions.