Source: ET RISE
BENGALURU: Trade financing company Vayana Network, which recently split from parent company Vayana (VPL), has raised $4 million or about 26 crore from venture capital firms IDG Ventures India and Jungle Ventures.
Vayana Network, based in Pune, was created by slump purchase of the business from VPL in May this year.
“This (split) allowed a much more focused business both for VPL and Vayana Network and it made it easier to create investor interest,” CEO, RN Iyer said. Some of the VPL investors, including Mukesh Ambani’s Reliance Industrial Investments and Holdings, are shareholders in Vayana Network as well.
Vayana Network provides a digital platform for short-term trade financing which helps corporates to set up programs with financial institutions to help their sellers or buyers to finance purchases or sales. Typically, the terms of trade are 30-90 days often extending to 120 days, and if one of the parties needs working capital, Vayana Network helps them get access to loans digitally.
Vayana Network has partnered with five banks and four NBFCs, and has so far facilitated Rs 4,000 crore of financing, working with 180 corporates for their supply chains across 15 industries.
“At Vayana all the parties including buyers, sellers and funders are on the same platform. Also the loans are made by lenders and not through the balance of Vayana, so the company does not take any risk,” said TC Meenakshisundaram, MD at IDG Ventures.
The new funds will be used mainly to push the company’s GST-related services, which will helps buyers and suppliers match invoices through a continuous streaming product called Vayana Invoice Confirmation and Acceptance Services (VICAS). The company will work with VPL, which is one of the selected GST Suvidha Providers to route invoices to the GST Network portal.
“We will use the funds to invest in market development activities. We will also look at a global play,” Iyer said.
The move comes as IDG Ventures had recently invested in another financial technology company, Pune-based startup Early Salary, which offers salary advance loans to young, salaried professionals. Some of the VC firm’s other Fintech investments include credit facilitating platform CreditMantri and Fintellix, which offers banking data management solutions.