Vayana Network to scale up its overseas supply chain finance business

SCF platform Vayana to expand MSME services

Vayana Network, a supply chain finance (SCF) platform, said after enabling over $6 billion (₹45,000 crore) in trade finance for 300 supply chains, it would expand its services for Indian MSMEs to grow their global trade.

“With over 48% share in exports, MSMEs in India have truly embraced global trade over the past couple of decades. India will get further embedded in global supply chains and grow its share in trade in the coming years,” said Ram Iyer, founder and CEO.

“At the same time, businesses are suffering from working capital challenges due to delayed export receivables and advanced payments on their imports. This is an over-$100 billion financing gap today, which cannot be solved through traditional trade finance solutions like Letter of Credit (LC) & guarantees,” he said.

Vayana had created partnerships with leading financiers in key global markets to create easy financing options for Indian and Asian businesses. More tie-ups are in the offing, Mr. Iyer said.

“With the help of our teams in the U.S. and Singapore, we are bringing door-step and cheaper financing to businesses of all sizes in India against their exports and imports,” he added.

The firm connects corporates and their trade ecosystems to provide digital and affordable access to credit for their payables and receivables. It is increasingly catering to the smallest of MSMEs in the long tail of the supply chains. It has mobilised financing for over 25,000 SMEs from leading banks and NBFCs.

Mr. Iyer said SCF is finding traction because unlike other lending products it first focuses on trade and then on the borrower rather than focusing purely on the borrower.

“We focus along with our lender partners on financing essential trade between buyer and sellers. As SCF is short term in nature, it is easy for the lender to calibrate the risk immediately,” he said.