Supply chain fintech VoloFin secures $50M in funding from major US bank
The funds are earmarked primarily for disbursals, aiming to provide Indian exporters with much-needed trade finance without requiring collateral—something traditional banks rarely offer.
VoloFin, a Singapore-headquartered supply chain financing startup, secured $50 million in a fresh funding round from a top-five US-based global bank, which wishes to remain unnamed due to a non-disclosure agreement.
The funding is structured as a notes programme, with a European-based special purpose vehicle (SPV) issuing the notes the bank has subscribed to, VoloFin said in a statement.
Notes refer to financial instruments similar to bonds issued by an SPV. These notes are subscribed to by investors—in this case, a major US bank—who provide funding in exchange for a return.
This strategic partnership marks a significant milestone for VoloFin, as it is the first in the sector to secure such a structured facility without relying on external equity funding, Roshan Shah, Co-founder and CEO of VoloFin told YourStory.
“We are the only platform that has been able to structure such a facility. In fact, platforms which have raised tens of millions or hundreds of millions, have not been able to structure this specific transaction that we have done,” Shah said.
The funds are earmarked primarily for disbursals, aiming to provide Indian exporters with much-needed trade finance without requiring collateral—something traditional banks rarely offer.
The first tranche has already been disbursed, and the facility allows for rapid expansion, with plans to increase the programme to $150 million over the next three years. The $50 million is anticipated to support 250 to 350 exporters, it said.
“We're delighted to receive this funding from such a large global institution that believes in our mission and commitment to serving the SMEs. This is a significant milestone in our growth story, and we will continue to deepen our propositions for underserved SMEs. We are committed to leveraging this funding to bolster our capabilities and bridge the trade finance gap for the exporters, which are the backbone of the economy,” Shah said in a separate statement.
Edited by Suman Singh