The country's trade finance market is worth around USD 100 billion a month, of which only USD 45 billion is coming from the formal route, with the rest being funded by money lenders and other informal route, according to him.
Founded in Pune in 2017, Vayana is the Visa or Mastercard in supply chain financing and facilitates payments across 20 countries trans-boarder now. It has a USD 3.5 billion business in the pipeline now.
The company is funded by Chiratae Ventures of Bengaluru, IDG Ventures, and Jungle Ventures of Singapore which have together invested USD 8 million and now own a little over 50 per cent.
Vayana enables credit to its clients from banks and non-bank lenders for up to 90 days for a fee that varies from 20-40 bps of the interest, which is priced at 12-15 per cent.
It does not hold the credit on its books but is responsible for the timely repayment, Iyer said. He added that there has been a single default so far. The fee is paid by the lender and not the client.
Vayana, which in Sanskrit means 'weaving together' has tied up with 20 financial institutions 16 in the country and four in the US to facilitate loans that have a ticket size of Rs 50 lakh to Rs 500 crore.
On profitability, Iyer, who is a serial entrepreneur said it is near profitable and should be in the green by June next.
Iyer earlier co-founded CashTech Solutions, a leading cash management vendor, and later sold to Nasdaq-listed Fundtech.
Vayana corporates and their trade ecosystems by providing digital and affordable access to credit for their payables and receivables. Since inceptions, it processed over 1.7 million transactions all free for customers who come from 600 cities across 20 countries. It is also into e-invoicing and e-way billing.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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