How a home-grown automobile giant strengthened its supply chain ecosystem with Vayana

In the automotive industry where expansive supply chains determine success, financial efficiency across buyers and sellers is key to sustained growth. Large automobile manufacturers with global footprints, operate within an ecosystem consisting of many counterparties – vendors supplying critical components, dealers driving sales, and  FIs enabling liquidity. 

This case study of a large, home-grown automobile giant with a rich legacy and a strong global presence, leveraged Vayana’s SCF Solutions to create a scalable and digitally integrated Supply Chain Finance Program for its diverse supply chain ecosystem. 

Objective? Optimizing Cash Flow and Financial Access. 

With a diverse network of vendors and dealers, the company aimed to enhance cash flow efficiency across its ecosystem. The goal was to ensure that every stakeholder, whether a vendor awaiting payments, a dealer requiring credit, had access to the right financing solution at the right time. 

To achieve this, the company aimed to, 

1. Ensure smooth financial transactions across the supply chain, supporting counterparties of all sizes 
2. Improve liquidity access for vendors and dealers to keep operations running without disruptions 
3. Diversify finding sources by engaging multiple FIs to enhance flexibility and reduce dependency on a single lender 
4. Leverage digital solutions for faster credit disbursement, automated invoice processing, and real-time reconciliation. 

Vayana’s Multi-Faceted Financing Program

Recognising the need for a structured and technology-led approach, the company partnered with Vayana to design and implement a comprehensive SCF framework tailored to its diverse ecosystem. The comprehensive financing program included:

1. Vendor and Dealer Financing:  Access to funding for over 55 Vendors and 300+ buyers (Dealers and large buyers) through Vendor Financing, Dealer Financing , and Factoring programs. 
2. Total credit limit of INR 3000 Cr: Structured a total credit limit of INR 3000 Cr across multiple banks
3. Diversified Banking Partnerships: Collaboration with four leading private and public sector financial institutions, including the following banks to diversify funding sources and mitigate risks
4. Digitization and Integration: Automated financing workflows with a single gateway for managing multiple programs

The Results? A Transformative Impact on Cash Flow Management

The impact of the solution was both immediate and far-reaching. 

• High Adoption and Utilization: With 70% program utilization of INR 3000 Cr, the model demonstrated strong uptake
• Enhanced Operational Efficiency: Automated onboarding and day-to-day transaction integration streamlined financial processes 
• Rapid Access to Funds: The digital financing solution enabled transactions to be completed in just five minutes from invoice file upload to credit., ensuring vendors and dealers received funds without delays
• Optimized Cash Flow: Improvements in DPO and reductions in DSO strengthened the working capital cycle, supporting sustained growth
• Risk mitigation through diversification: By engaging with multiple banks—including some of the largest public and private sector institutions in India—the company reduced its exposure to SCF concentration risks

This case study reiterates how a strategic approach to financing can empower large-scale organizations to navigate cash flow complexities. By partnering with Vayana, this home-grown automobile manufacturer, successfully digitalised its cash flow management strategy. The program not only enhanced financial efficiency but also reinforced the company’s commitment to cater to its vast network of vendors and dealers. 

Write to us at scfenquiries@vayana.com to kick-start your working capital management journey with digital SCF programs.