Pune-based fintech startup Vayana Network claims to become the first trade financing business to cross ₹6,857 crore ($1 billion) in loan disbursals while catering to more than 250 supply chains across the country.
Ramaswamy Iyer, founder, and CEO, Vayana Network, said that the company took four years to achieve this milestone, but is confident of doubling the figures within the next year.
Vayana Network aims to provide easy and low-interest trade financing to small supply chains, along with helping supply chains connect with businesses to provide a comprehensive platform for both of them. It was founded by Ramaswamy Iyer and H Srikrishnan.
The company has partnered with multiple banks and financial institutions to process these loans for enterprises. As claimed by the company, Vayana Network has processed over 650k invoices covering more than 600 pin codes in over 150 cities in the country across various industries ranging from manufacturing to e-commerce.
“Initially building this technology-enabled platform for small and micro enterprises was challenging, but now with the e-way bill, goods and services tax (GST) and rapid digitization of payments we should be able to scale up faster,” said Iyer.
Iyer also said that the company is trying to solve the financing requirements for small enterprises who are suppliers or vendors to large corporate entities or could be buying products from them. Among the borrowers, nearly 45% come from smaller towns and cities, which goes to show that the business model is working and they are trying to penetrate further to realize their goals.
The company fixes a lending partner and the interest rate with every supply chain based on its integration with the corporate. The interest rates vary between 9% to 13%.
Trade financing is emerging to be one of the most lucrative business in the lending space and Vayana Network has done well to capture the market and establish itself as a leader in the domain.