Private sector lender Karur Vysya Bank Ltd. (KVB) has joined hands with Unanu Technologies to introduce digital freight financing to fund transport contractors using the end-to-end logistics technology platform.
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KVB is the first bank to introduce digital freight financing through marketplace in the banking sector, said MD & CEO B. Ramesh Babu.
This feature would enable KVB to provide funding based on the invoice and other mandatory documents available in the digital freight finance system.
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The technology platform will provide a complete flow of transactions from the time the material is picked from shippers to unloading the material at the consignee’s place. All this would come in a digital format that is easy to track and handle the transactions, which would solve the lacuna that is currently prevailing in the existing logistics business, the bank said in a statement.
“This Digital Freight Finance Programme will go a long way in releasing the working capital which otherwise has a longer cycle time. This ultimately will enable the Transport Contractors to expand their business volume,” he said.
Srini Sundar, CEO, Unanu Technologies, said the next version would be blockchain-enabled to have integrity and security in transactions.