On track to cross another USD 1 billion in FY19
Volumes grow 106% q-o-q
Chennai: Vayana Network, India’s largest 3rd party Short-Term Trade Finance (STTF) platform, today announced crossing the USD 1 billion mark of trade financing on its network. Vayana’s simple, cloud-based Network enables businesses and their trade partners get easy, digital and fast access to financing from Financial Institutions (FIs), such as Banks and NBFCs, at better than market rates.
Vayana has facilitated short term trade financing of Rs. 1,800cr. ($260M) in Q1FY19 which is 5 times more than Q1FY18 and 106% more than the previous quarter which is traditionally the strongest or the largest quarter. With a lot more trade financing programs expected to go live in this and next quarters, Vayana is on track to more than double in FY19 the $ 1 billion facilitated till date.
In India, the Network has processed 650k+ transactions till date and has helped finance 1000+ MSMEs in with more than 45% of them from beyond tier 2 cities. Customers are spread across 150+ cities across the country.
Key markets outside India include SE Asia and US where Vayana has customers in 12 states with their Suppliers located in 20 different countries. Financing on Vayana is based on valid Trade flows and relationships which makes the credit assessment by the lending partners really easy and quick. The company boasts of 95% customer retention with none of the partner FIs reporting NPAs.
Speaking on the achievement, Ram Iyer, Founder & CEO of Vayana Network said, “This is an incredible milestone for us as we continue to exponentially grow the volume of transactions on our Network. This has been made possible due to the ease, convenience and speed we have purposefully engineered into our financing programs which has also fueled our business outside India.”
“We have quickly established ourselves as the market leader in facilitating low-cost, hassle-free short-term trade finance for Corporates and their MSME counterparts. This was possible because of a strong commitment towards our customers and by staying true to our vision to democratize the access to trade finance for even the smallest of enterprises. We will continue to build on this foundation and intend adding at least 500 new customers this year,” Iyer further added.
Vayana Network raised USD 4 Million from IDG Ventures and Jungle Ventures in June 2017. Commenting on this milestone, Mr. T C Meenakshisundaram, Founder & Managing Director, IDG Ventures India said, “Vayana’s platform has disrupted the traditional landscape enabling the much-needed access to working capital for the SMEs to help them grow faster. Achieving $ 1 billion run rate in Q1FY19 is a significant milestone. The potential market opportunity in India is in excess of $ 125B+ and is expected to be the fastest growing segment in corporate loans. We believe that Vayana will redefine and continue to be a dominant player in the short-term trade financing market with the singular vision of providing the simplest and easiest access to low-cost finance to its customers. We are excited to be a part of their journey and will continue to support their growth in the years to come.”
“We were impressed with Vayana Network’s innovative focus on solving a key challenge in the trade financing space. The problem is universal and the company’s rapid ascend to this milestone is a strong validation of their unique approach and the experience of the management team in this industry. We are proud to have partnered with them and help their expansion into other markets.”, added Amit Anand, Founding Partner, Jungle Ventures.
Vayana Network is an electronic network that connects Corporates and their Supply Chains to enable easy, digital access to low-cost trade financing of their payables and receivables. The Network has till date enabled USD 1 billion+ in financing, digitized over a 650k+ invoices and today covers 650 pin codes in over 160+ cities in India across 20 different industries, from Manufacturing to e- commerce. The Network has a presence in 20 countries. Vayana GSP offers end-to-end services to Corporates and SMEs to meet their GST and E-way bill compliance needs and is one of the government authorized GST Suvidha Providers (GSP) in the country. Vayana GSP serves over 700 large corporates and some of the largest financial institutions and banks, in addition to other third-party Application Service Providers (ASPs) that have over 150,000 SMEs routing their API traffic through it. Vayana also provides ASP services under the brand name SahiGST. Vayana GSP is one of the first GSPs to fully integrate with National Informatics Centre’s (NIC) production environment for E-Way Bill APIs enabling easy E-way compliance. The company is PCI DSS and ISO 27001:2013 compliant and is a winner of the PYMNTS GOLD award globally for Credit Innovation given by PYMNTS.com 2015, USA.