Vayana Network raises Rs 114 cr from IFC, PayU

Trade finance-focused Vayana Network has received a Rs 114-crore investment from International Finance Corporation (IFC), a member of the World Bank Group, and payments company PayU.

The investment is part of the Series C funding round, which has already seen Marshall Wace, March Capital, Chiratae Ventures, CDC group, Jungle Ventures, and some family offices in India and abroad invest Rs 283 crore in the company, it said in a statement on Wednesday.

The newly raised funds will be deployed for building products which will help small businesses manage their working capital and become 'credit ready', it added.

The company will be doing over USD 10 billion in trade finance in FY23 and is focused on creating tools and infrastructure to help small businesses manage their working capital efficiently and sourcing trade finance at the most affordable rates, Vayana Network's Founder and Chief Executive Ram Iyer said.

It will also launch 'Vayana ITFS' (International Trade Finance Services) platform at the GIFT City this fiscal, which will enable exporters and importers access international trade finance facilities at competitive rates, he added.

''By supporting the rapid growth of a key player in India's digital SCF (supply chain finance) infrastructure, IFC will contribute towards increased data and financial integration, enabling better assessment of risk and provision of tailored financing,” Wendy Werner, India country head at IFC said.

PayU's head for strategy and growth, Vijay Agicha, said the investment is aligned with its ambition to capture the broader India SME credit opportunity, and added that it will be co-creating products with Vayana to address the needs of the merchant base.

''The collaboration between both companies will lead to multiple synergies with PayU's merchant ecosystem, especially the SME transaction platform & SME lending portfolio,'' he added.