Indian FinTech Companies: Supply Chain Financing

Introduction: What Is Supply Chain Financing?

Supply chain financing is a collection of technology-based business and financing procedures that helps all parties involved in a transaction to save money and work more effectively. When the buyer possesses a stronger credit rating than the seller and can acquire financing at a lesser cost, supply chain financing achieves better results.

Business finance includes supply chain financing as a crucial component. In a transaction, the Working Capital (WC) for the buyer and seller is improved by this short-term credit scheme. Connect buyers, sellers, and financial or banking institutions offering short-term credit; it typically entails a collection of procedures or a tech solution. 

Supply Chain Financing In India:

Supply Chain Financing has been diligently employed by Small and Medium-sized Enterprises (SMEs) to meet their requirements for short-term credit. Over 40,000 small-scale businesses in India now have access to the services of many Supply Chain Finance FinTech firms that emerged in the country not so long ago. These firms provide borrowers with instant credit services.

According to industry sources, India’s addressable supply chain financing market is roughly INR 60,000 Crore, whereas the total market is about INR 18 Lakh Crore.

Supply Chain Financing FinTech Companies In India:

• LIVFIN

“Funneling The Three Trillion US Dollars Trade Finance Gap: 1 Invoice At A Time”

Website: LivFin | NBFC Registered With The Reserve Bank of India

About: 

LivFin is the top provider of custom Supply Chain Financing solutions in India. Their solutions for growth capital (or expansion capital) and working capital (WC) are straightforwardly accountable for the expansion of Micro, Small, and Medium Enterprises (MSMEs). They provide:

• Complete solutions in e-invoicing and payment.
• Enabling easy digital transactions between producers.
• Traders/wholesalers.
• Vendors.

Due to LivFin’s ongoing center of attention on finding solutions to authentic financial bottlenecks, they enable Small and Medium-sized Enterprises (SMEs) and Micro, Small, and Medium Enterprises (MSMEs) to grow at an unmatched pace.

Establishment Year: 2017

Headquarters: New Delhi

Solutions Provided: 

• Sales Invoice Finance
• Purchase Invoice Finance
• Buy Now Pay Later
• Supplier Finance
• Distributor Finance

 

• KredX

“Empowering Every Business With Customized & Fast Supply Chain Financing Solutions”

Website: India’s Largest Supply Chain Financing Company – KredX

About:

KredX is the leading integrated financial solutions provider in India, assisting big corporations, start-up businesses, Micro, Small, and Medium Enterprises (MSMEs), distributors, and retailers in overcoming their issues with growth capital (or expansion capital) and working capital (WC). Enterprises can manage their finances by using their customized solutions, ranging from corporate finance and cash flow management to channel financing and working capital (WC).

Establishment Year: 2015

Headquarters: Bangalore, Karnataka

Solutions Provided: 

• Invoice Discounting
• KredX Pay Later
• KredX Cash Management Solutions
• KredX Global Trade

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• Vayana Network

“Trade Finance For All”

Website: Our Vision | Vayana Network trade finance, GST and business analytics solutions

About:

Vayana Network is an online trade financing platform with the help of which businesses may easily, quickly, and affordably receive trade financing for their receivables and payables. This electronic network links businesses and the financial or banking institutions that serve their supply chains. It integrates buyers and sellers, facilitating sellers to produce a trade document that affiliated financial institutions finance after receiving permission from the buyer. 

Establishment Year: 2009

Headquarters: Pune, Maharashtra

Solutions Provided: 

• Commercial Card
• Processor
• Vayana Card
• Vayana Tap
• V Invoice
• Receivables Financing
• Payables Financing

 

• Receivables Exchange of India Ltd (RXIL)

“Making Financing Simpler For MSMEs”

Website: Receivables Exchange of India Limited : (rxil.in)

About:

Receivables Exchange of India Ltd. (RXIL) is a joint venture supported by the National Stock Exchange of India Limited (NSE), which is India’s leading stock exchange, and the Small Industries Development Bank of India (SIDBI), which is the country’s premier financial institution for the promotion and financing of MSMEs. According to the Trade Receivables Discounting System (TReDS) guidelines announced by the Reserve Bank of India (RBI) on the 3rd of December in 2014, RXIL runs the TReDS Platform.

Establishment Year: 2016

Headquarters: Mumbai, Maharashtra

Solutions Provided (TReDS): 

• Unified platform for Sellers, Buyers, and Financiers
• Easy Access to Funds
• Transact Online
• Competitive Discount Rates
• Seamless Data Flow

 

• Invoicemart

“Fast, Flexible, & Convenient”

Website: Trade Receivables Discounting System (TREDS) platform | Invoicemart

About:

Axis Bank Limited and Mjunction Services Limited collaborated to create Invoicemart, a digital marketplace that links Micro, Small, and Medium Enterprise (MSME) suppliers and corporate customers to various lenders. It helps vendors to swiftly free working capital (WC) by selling their invoices to financiers. Invoicemart is a Trade Receivables Discounting System (TReDS) platform created to help MSMEs with their credit problems.

Establishment Year: 2016

Headquarters: Thane West, Mumbai, Maharashtra

Solutions Provided: 

• Improved cash flows
• Reduced cost of funds
• No debt, no collateral
• Streamlined vendor payments
• Seamless ERP integration
• Flexible payment terms
• PSL accreditation
• Easy reconciliation
• Low-risk

 

•  M1xchange

“Treading The Right Path For MSMEs With Maximum Operational Financiers”

Website: TReDS | Online National Exchange for Trade Receivables – M1xchange

About:

M1xchange TReDS is an online marketplace to assist invoice discounting and the discounting of bills of exchange on a PAN India basis that was established with RBI approval to sell the receivables to banking institutions Non-Banking Financial Companies (NBFCs). M1xchange is among the most well-known trade receivables platforms and is a lifesaver during lean financial times for suppliers of MSMEs.

Establishment Year: 2016

Headquarters: Gurgaon, Haryana

Solutions Provided: 

• Bill Discounting

 

• Priority Vendor

“Better Together”

Website: Priority Vendor | Early Payment For Working Capital in INDIA | Invoice Discounting in India| Supply chain Finance in India| Vendor Finance in India | Dynamic Discounting in India

About:

Priority Vendor, India’s biggest dynamic discounting platform, offers working capital (WC) solutions to corporations and their suppliers of raw materials, packing materials, transportation services, and others to extract value from the current supply chain. By offering cash discounts on accepted invoices, Priority Vendor’s dynamic discounting technology facilitates suppliers to obtain liquidity at competitive rates. This benefits the clients’ suppliers and customers in a large-scale, automated, risk-free manner.

Establishment Year: 2014

Headquarters: Noida, Uttar Pradesh

Solutions Provided: 

• Dynamic Discounting

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