Vayana Network raises ₹ 114 crore in Series C round from IFC and PayU to increase formal trade credit to MSMEs

• IFC, PayU invest ₹ 114 crore in Trade finance startup, Vayana Network in Series C round to increase formal trade credit to MSMEs
• The startup raised ₹. 283 crore from existing and new investors. The latest fund totals Rs. 397 crore.

April 20, 2022: Vayana Network, a Trade finance startup as part of its Series C round had already raised ₹ 283 crore from existing and new investors, including Chiratae Ventures, Marshall Wace, Jungle Ventures, March Capital, CDC group, and well-established family offices in India and abroad. The latest fund totals ₹ 397 crore.

In a statement, Ram Iyer, Founder and CEO of Vayana Network, said that they will launch Vayana ITFS (International Trade Finance Services) platform at Gift City (Gujarat), enabling importers and exporters to access international trade finance facilities at competitive and affordable rates. ” Vayana ITFS (International Trade Finance Services) will be launched by the end of Q1FY23,” Ram Iyer said.

As the platform is located at GIFT City SEZ, it will open the market for any bank or financial institution anywhere in the world. Global lenders will be able to bid for loans on the platform and SMEs will get loans on the ITFS platform at an annual rate of about 12% lower than the 18-36% interest they currently pay.

“The support of global investment companies and financial institutions is a strong support for our commitment to democratizing small businesses and financing them,” Ram Iyer said.

Wendy Werner, Country Head of India at IFC, said that by supporting the rapid growth of key players in India’s digital supply chain finance infrastructure, IFC would enhance data and financial integration, enable better risk assessment and provision of appropriate financing.

Vijay Agicha, global head of strategy and growth at PayU, said both companies wanted to democratize SMEs’ access to finance through technology.

The collaboration will lead to multiple synergies with PayU’s merchant ecosystem, including transaction platforms and SME lending portfolios, he said.

Vayana Network also plans to use the funds to create products focused on helping MSMEs efficiently manage their working capital and sourcing business finance at the most affordable rates.

Vayana Network has so far enabled more than $ 10 billion in finance in the country and has processed over 2 million transactions in 600 cities and 1,400 pin codes. Vayana Network ‘s FY22 distribution at ₹ 30,000 crore has been surpassed.

There are 17 banks and NBFCs on its platform and six more will join soon. Vayana is also one of the largest GST facility providers in the country, offering GST, e-way billing and e-invoice for corporate and millions of SMEs.