Source: Venture Dreams
Vayana Network, a trade financing company, which recently split from parent company Vayana (VPL), has announced that it has raised $4 million from venture capital firms IDG Ventures India and Jungle Ventures.
The new funds coming to the company 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).
It will work with VPL, which is one of the selected GST Suvidha Providers to route invoices to the GST Network portal.
The company, which is based in Pune, was created by a slump purchase of the business from VPL in May this year. RN Iyer, CEO of the company, said, “This (split) allowed a much more focused business both for VPL and Vayana Network and it made it easier to create investor interest.”
Some of the VPL investors, including Mukesh Ambani’s Reliance Industrial Investments and Holdings, are shareholders in Vayana Networks as well.
TC Meenakshisundaram, MD at IDG Ventures, said,
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.
Vayana Networks is 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 Networks helps them get access to loans digitally.
The company has partnered with five banks and four NBFCs, and has so far facilitated 4,000 crore of financing, working with 180 corporates for their supply chain across 15 industries.