Farmart and Vayana Redefine Financing with Trade Receivable Securitization

In markets where cash flow efficiency is critical, the gap between buyers holding cash and suppliers seeking timely payments is a persistent challenge. Despite the rise of Supply Chain Finance (SCF), many small and medium-sized enterprises (SMEs) remain underserved. Expanding financing options for them is essential to driving investment, growth, and innovation. This case study highlights how Trade Receivable Securitization (TRS) offers a scalable and inclusive solution, enabling anchors to finance their receivables, addressing key challenges in the process. 

Client Overview: Farmart Services Pvt. Ltd.

Farmart, a SaaS-based B2B food commerce platform founded in 2015, connects food producers, processors, and businesses across Asia, the Middle East, and Africa. With over 3.8 million farmers, 250,000 farm aggregators, and 4,000 food businesses, Farmart operates an asset-light model offering services in procurement, export, and value-added sectors.

The Challenge: Scaling Working Capital with Minimal Exposure

Farmart faced the challenge of optimizing working capital while minimizing balance sheet exposure. Key issues included:

• Access to unsecured financing with broad debtor coverage
• Off-balance-sheet funding to support their asset-light model
• Scalable solutions with minimal recourse

Traditional options like NBFC loans and standard securitization products did not meet their needs.

The Solution: TRS with Vayana

Farmart partnered with Vayana to implement Trade Receivable Securitization (TRS), a structured debt instrument that offers corporates direct access to private capital markets. The TRS structure provided:

• Unsecured financing with diverse capital sources
• Off-balance-sheet funding, aligning with Farmart’s asset-light model
• A flexible replenishment structure and ESCROW-controlled cash flows

Vayana’s expertise in structuring the deal and managing complex stakeholder relationships was key to its success

The Impact: A Groundbreaking Financing Model

The TRS solution proved transformative for Farmart:

• Enabled scalable, low-recourse working capital funding
• Supported rapid growth, marking a pioneering deal in India’s corporate market
• Demonstrated TRS as a stable funding source, paving the way for larger future deals

The success of this model reinforced Farmart’s confidence in TRS as a long-term financial strategy.