Supply chain fintech company VoloFin, headquartered in Singapore, has successfully secured $50 million in funding from one of the top five U.S.-based global banks. The identity of the bank remains undisclosed due to a non-disclosure agreement. This substantial investment, structured as a notes programme, aims to provide critical trade financing solutions to Indian exporters without the need for traditional collateral requirements, setting it apart from conventional bank offerings.
In a strategic financing arrangement, VoloFin has utilized a European-based special purpose vehicle (SPV) to issue the notes, which the unnamed U.S. bank has subscribed to. The notes programme functions as a bond-like instrument, allowing investors to contribute funds in exchange for a return. This unique financing facility marks a pioneering achievement for VoloFin, which has managed to secure such funding without external equity investment—a feat few in the industry have accomplished. “We are the only platform to structure this type of facility, even surpassing competitors who have raised millions yet couldn’t replicate this transaction,” said Roshan Shah, Co-founder and CEO of VoloFin.
Boosting Trade Finance for Indian Exporters
This $50 million funding injection is earmarked primarily for disbursements to Indian exporters, offering them access to crucial trade finance without the collateral demands that traditional banks impose. The initiative is set to benefit small and medium-sized enterprises (SMEs) across India, who often face financial constraints due to the stringent collateral requirements of conventional banks. The initial tranche has already been disbursed, and the funds are expected to support between 250 and 350 exporters. Furthermore, VoloFin has plans to expand this programme to $150 million over the next three years, demonstrating its commitment to scaling up and supporting India’s export ecosystem.
The lack of collateral requirements is a game-changer for Indian exporters, particularly SMEs. Unlike traditional financing options that require asset-based guarantees, VoloFin’s solution provides a pathway for SMEs to secure funding based on their trade activity, helping to bridge the trade finance gap in India and drive economic growth.
A Milestone for VoloFin’s Growth Strategy
Receiving such substantial funding from a major global financial institution underscores VoloFin’s credibility and growth potential. “We’re thrilled to have this partnership with a global institution that shares our commitment to supporting SMEs. This funding marks a significant milestone in our journey, and we will continue to enhance our solutions for the underserved SME sector,” Shah added.
By securing this $50 million funding, VoloFin strengthens its position as a leader in trade finance innovation, particularly within India’s growing SME sector. The company’s mission to provide accessible trade finance aligns with broader efforts to support India’s economic backbone—the SMEs and exporters.
About VoloFin’s Future Plans and Market Impact
VoloFin’s structured facility represents an important development in the fintech landscape, especially for companies seeking non-traditional funding avenues. By sidestepping external equity funding, VoloFin maintains its operational autonomy while accessing necessary capital for growth. With the projected expansion to $150 million, VoloFin’s trade finance solutions are expected to have a substantial impact on India’s export market, further positioning the company as a key player in the supply chain financing space.
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