Date: March 9, 2020
Pune: Vayana Network said it had crossed $3.5 billion in trade financing so far since it launched the platform three years ago and expects to finance the same volume of trades in the next financial year.
RN Iyer, CEO of the trade financing platform, said the company was “on track to do business worth $3.5 billion in FY21 alone.” Vayana works with large corporates to help finance their supply chain, across 21 industries, connecting them and suppliers to a network of lenders through its tech platform, and financing their payables and receivables.
At the end of financial year 2019, the company had said it crossed $2 billion in loan disbursals, doubling it from $1 billion in the nine months from July 2018.
Iyer said most growth had come through existing customers doing increased volumes through its network.
Going forward, the company is looking to tap the mid-market segment more actively —companies in the Rs 500 crore – Rs 3,000 crore range which find it relatively harder to get financing for their supply chain partners.
Apart from this, it is also going further downstream with existing clients, helping finance the next level of their partners, distributors or stockists. “We will work with all the suppliers in the network to make sure that all parts of the supply chain are functioning effectively,” said Iyer.
Vayana is also among the biggest GSPs in the country, working with over 500 large corporates in addition to routing traffic from other application service providers through its platform.
Iyer said that with GST being implemented and e-invoicing being introduced, it would finally give lenders data on smaller companies, which was not available so far. This would make it easier to provide financing to these firms, opening up new opportunities for the company.
At present, while the domestic business accounts for the bulk of its business, Iyer said that cross-border trade financing was also gaining steam. “From about 4 percent of the business six months ago, we see this growing to about 20 percent by December 2020, even as the overall business continues to grow,” said Iyer.
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