Trade financing company Vayana Network, which recently split from parent company Vayana (VPL), has raised $4 Million (about Rs 26 crore) from venture capital firms IDG Ventures India and Jungle Ventures. Previously, the firm raised funding which was led by Reliance Industrial Investments and Holdings Ltd.
The Pune-Based start-up which has headquartered in Chennai was founded in May 2017 by R N Iyer. The company’s service will help suppliers and buyers match invoices through their product VICAS (Vayana Invoice Confirmation and Acceptance Services). Further, the firm will also work with closely with its parent company to route invoices to the GST Network portal.
“This (split) allowed a much more focused business both for VPL and Vayana Network and it made it easier to create investor interest,” CEO, RN Iyer said.
Vayana Network provides a digital platform for short-term trade financing which helps corporates to set up programs with financial institutions to help their sellers or buyers to finance purchases or sales. Typically, the terms of trade are 30-90 days often extending to 120 days, and if one of the parties needs working capital, Vayana Network helps them get access to loans digitally.
Vayana Network has partnered with five banks and four NBFCs, and has so far facilitated 4,000 crore of financing, working with 180 corporates for their supply chain across 15 industries.
“At Vayana all the parties including buyers, sellers and funders are on the same platform. Also, the loans are made by lenders and not through the balance of Vayana, so the company does not take any risk,” said TC Meenakshisundaram, MD at IDG Ventures.
The company plans to use these latest funds mainly to push the company’s GST-related services, which will helps buyers and suppliers match invoices through a continuous streaming product called Vayana Invoice Confirmation and Acceptance Services (VICAS). Read more about Indian Startup Ecosystem.
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