A new player in the production of automobile components wanted to break into the market by ensuring that he built a strong distribution network. But this would demand that he offers higher credit terms. And that would result in blocking even more of the working capital.
This scenario is not exclusive to the automobile or manufacturing industry. It is among the everyday challenges that most organisations face. How does one bring a balance in cash flow by allowing an extension in credit period without blocking their own working capital?
Short-term Trade Financing manages terms and tenures of 50 to 120 days. While this is a solution that a lot of banks across the globe provide, the need for validating every invoice or purchase allows for this solution to be feasible only for large organisations and the top tier of their Supply Chain Network. Vayana Network breaks this barrier by digitally enabling the authentication of invoices opening the opportunity to businesses, big and small.
Today Vayana Network is partnered with 5 banks and 4 NBFCs facilitating Rs. 4000 crores of Financing for at least 180 companies with Supply Chains across 15 sectors. In partnership with Financial Institutions, Vayana Network also offers a Commercial Card solution for Payable Financing. Having received a Series A funding of USD $4 million from IDG Ventures and Jungle Ventures, their aim is to break-even in the next 18 months.
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