Alpha Wave, Matrix, Polygon, Coinswitch back Web3 lending platform Polytrade
Polytrade is building a financing arm to bring sustainable real-world yields to lenders in Web3. This can also give global SMEs access to working capital financing against their invoices.
On-chain trade finance startup has raised $3.8 million in a seed round led by Alpha Wave, Matrix Partners, Polygon Ventures, and CoinSwitch Ventures, with participation from Singularity Ventures, GTM Ventures, and other notable angels.
Polytrade aims to use the capital to build solutions to streamline supply chains by providing real-time data and help reduce errors, delays, and disputes, while also improving visibility and transparency through blockchain tech.
Its initial project includes a financing arm to bring sustainable real-world yields to lenders in Web3. This can also give global SMEs access to working capital financing against their invoices.
“We understand where the problems lie as well as the real-world impact Web3 can bring. I believe that with Polytrade, we can make trade finance one of the most preferred asset classes for investors given its relative safety coupled with robust yields," said Founder and CEO Piyush Gupta.
The startup is advised by Sandeep Nailwal, Co-founder, ; Sameep Singhania, Co-founder, ; Saurabh Shankar, Co-founder, ; and Rahul Garg, a Web3 investor.
How Polytrade works
Polytrade Finance targets credit funds, decentralised autonomous organisations (DAOs), Web3 treasuries, family offices, Web3 hedge funds, and retail investors to support lending pools.
These pools allow global SMEs to directly access trade finance opportunities. The startup aims to make the connections between buyers, sellers, insurers, and investors a seamless experience.
It claimed it has already raised more than $11 million in decentralised finance (DeFi) liquidity and traditional credit facilities.
“By leveraging blockchain to provide access to previously untapped yield streams, Polytrade has the potential to disrupt traditional financial systems and unlock new opportunities for investors. We are excited to support their mission and be a part of the growth of DeFi," said Tushar Behl, Investment Team, Alpha Wave.
Polytrade calls itself a global Proof of Trade (PoT) protocol, which refers to the startup holding custody of the underlying collaterals for each pool, with no third-party involvement, ensuring the end-to-end safety of funds.
The seed funding will help the startup build its product suite, focus on marketing and enter new geographies. It is also working on an on-chain identification system using zero-knowledge (ZK) tech.
