With this, the company has closed its latest fundraising of Rs 397 crore (about $52 million).
Vayana Network raised Rs 283 crore (about $37 million) last November from new and existing investors including Marshall Wace, March Capital, Chiratae Ventures, CDC group and Jungle Ventures, among others.
It said it plans to use the funds to double down on its offerings for micro, small and medium enterprises (MSMEs).
Founded in 2016 by Ramaswamy Iyer, Vayana Network provides trade finance to suppliers and small enterprises in the automotive, fast moving consumer goods (FMCG) and manufacturing industries, among others.
The company is also a GST Suvidha Provider (GSP), facilitating GST, e-way bill and online invoicing for corporates and MSMEs.
Discover the stories of your interest
“We continue to be bullish on our expansion and will now focus further on MSME credit, in line to have deeper inroads into trade financing… We also have received a licence for international trade finance and will power credit for export and import used cases,” Iyer told ET about the company’s growth plans.
“This fiscal year we will see the launch of Vayana ITFS (International Trade Finance Services) platform at GIFT City (Gujarat), which will enable exporters and importers to access international trade finance facilities,” Iyer added.
The startup disburses loans through its banking and non-banking finance partners. Last month, it disbursed Rs 5,500 crore worth of trade finance to small enterprises and plans to scale monthly disbursements to Rs 7,800 crore by June.
The company is also aiming to touch annual disbursement volumes of $12 billion by end of FY23. Vayana has partnerships with 70 large corporates and has provided credit to almost 150,000 small businesses with two million transactions to date. The average size of these loans is Rs 4-5 lakh, with an average duration of 90 days.
The Pune-based company also operates in the US and Singapore. It plans to set up an office in Dubai to enter the Middle East region. It is also looking to provide domestic trade financing to suppliers in the US, which continues to be a large white space for the company to grow, Iyer said.
Last October, cross-border trade financing startup Drip Capital raised $40 million in equity capital from San Francisco-based TI Platform, with existing investors including Accel, Sequoia, Wing VC, Irongrey, and GC1 Holdings also participating in the round.
ET
reported on March 23 that Oxyzo Financial Services, the supply-chain financing arm of SoftBank-backed business-to-business (B2B) commerce startup OfBusiness, raised its first external funding of $200 million in what is the largest Series A funding ever for an Indian startup.
