Vayana secures $20.5M as part of ongoing Series D round led by SMBC’s Asia Rising Fund

Trade credit infrastructure platform Vayana has raised $20.5 million as part of its ongoing series D funding round. The round was led by SMBC's Asia Rising Fund, and saw participation from existing investors, including International Finance Corporation (IFC), Chiratae Ventures, Jungle Ventures, and family offices Quantum State Investment Fund and Emerald Company Pvt. Ltd.

The funding will be used for the introduction of new products aimed at enhancing its suite of trade credit, compliance, and risk management platforms, and thereby providing affordable financing throughout the supply chain, the company said in a statement.

MSMEs in India contributes 30% to GDP and 62% towards employment. “Their continued success will leverage India's population demographics and equitable growth across the country,” said Ram Iyer, Founder and CEO, Vayana.

“Access to affordable and embedded trade credit represents the best catalyst to aid their success. We also believe that this goal requires the support of highly experienced financial services investors,” he added.

According to the company, there is a significant credit gap in the 65 million strong Indian MSME sector with a total addressable demand of approximately $120 billion per month. Banks and financial institutions currently cover only 45% of it, it said.

“We are excited to support innovation in finance to create social value via our collaboration with Vayana, which seeks to enable SMEs through opportunities to be part of supply chains. We look forward to combining the expertise of SMBC Group with Vayana's technologies to contribute towards the further growth of India,” said Keiji Matsunaga, General Manager, Digital Strategy Department, Sumitomo Mitsui Banking Corporation.

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Vayana provides a full stack of trade credit assessment, monitoring, and trade document processing and facilitates over $1 billion of financing every month by banks and NBFCs to over 3000 supply chains and their constituents distributed across the country, the company added.

“We were among the initial investors in Vayana and steadfast supporters of their vision to be a one-stop solution for all trade finance solutions for MSMEs, enterprises and lenders on their technology and underwriting platform across rounds,” said TCM Sundaram, Founder & Vice Chairman, Chiratae Ventures.

Founded in 2017, the company is an Indian trade credit infrastructure platform that specialises in supply chain finance and B2B trade enablement solutions.