Trade finance platform Vayana Network announced on April 20 that it had raised a Rs 1.14 crore Series C round from International Finance Corporation (IFC) and fintech firm PayU. Earlier in November 2021, the platform raised Rs 2.83 crore from various new and existing investors, including Marshall Wace, March Capital, Chiratae Ventures, CDC Group and Jungle Ventures, as part of a Series C funding round.

Bangalore-based Vayana, founded in 2017 by Ram Iyer, who also serves as the company’s CEO, plans to use the funds to build a product focused on helping MSMEs (Micro, Small, and Medium Enterprises) better manage their working capital and become credit get ready.

“While we will be doing over $10 billion in trade finance in India alone this fiscal year, we focus on creating the tools and infrastructure to help small businesses manage their working capital,” Ayer said. “FY23 will also see the launch of the Vayana ITFS (International Trade Financial Services) platform in GIFT City (Gujarat), which will enable exporters and importers to access international trade finance facilities at competitive prices.”

The supply chain finance platform claims to have achieved more than $10 billion in the financing, including more than $1 billion in B2B card flows to more than 150,000 MSMEs. Today, the network covers 600 cities and more than 1,400 passwords in India. In addition, it has expanded to 20 countries around the world.

“By supporting the rapid growth of key players in India’s digital SCF (Supply Chain Finance) infrastructure, IFC will help improve data and financial integration to assess risks better and provide tailored financing,” said Country Head, India Wendy Werner, speaking at the International Finance Corporation.

In addition, Vijay Agicha, Head of Global Strategy and Growth at PayU, said: “PayU and Vayana share a common vision of democratising access to finance for SMEs (small and medium enterprises) through technology. The collaboration between the two companies will lead” with PayU’s merchant ecosystem, especially the SME trading platform and SME loan portfolio, creates multiple synergies. This investment is in line with our ambition to capture wider Indian SME credit opportunities. “

According to World Bank estimates, Indian MSMEs alone face a credit gap of $380 billion. Supply chain finance in India is a $100 billion monthly opportunity for financial institutions.