IFC And PayU Invest INR 114 Crore In Vayana Network To Increase Formal Trade Credit To MSMEs
The fund will be utilised to build products focused on helping MSMEs to manage their working capital and become credit ready
Vayana Network, a finance network, has raised INR 114 crore in Series C funding from International Finance Corporation (IFC) and PayU, a payment service provider to online merchants. Vayana plans to use the funds to build products focused on helping MSMEs to manage their working capital and become credit ready.
"To have the backing of global investment firms and financial institutions is a strong endorsement to democratize small businesses and making them credit ready. We are focusing on creating tools and infrastructure to help small businesses manage their working capital efficiently and sourcing trade finance at the most affordable rates," said Ramaswamy Iyer, founder and CEO, Vayana Network.
As per World Bank estimates, Indian MSMEs alone face a $380 billion credit gap. Vayana serves a critical need by creating an ecosystem where financing is embedded in a transaction, digitally authenticated and trade credit is offered seamlessly, for every type and size of business in the supply chain, according to the statement.
"PayU and Vayana share a common vision of democratizing SME's access to finance through technology. This investment is aligned with our ambition to capture the broader India SME credit opportunity," said Vijay Agicha, global head of strategy and growth, PayU.
Founded in 2017 by Ramaswamy Iyer, Vayana Network connects corporates and their supply chain to financial institutions for easy and low-cost access to trade financing of their payables and receivables.