Singapore-based Incomlend, an invoice exchange platform has secured US$ 20M in a Series A funding round held in August 2020, from Sequoia Capital India, a Venture Capital firm and a logistics firm CMA CGM.
Proceeds from the round will be used by Incomlend to foray into new regions like Europe, Southeast Asia, and North Asia and enhance its technology stack.
Founded in 2016 by Dimitri Kouchnirenko and Morgan Terigi with an aim to tackle the problems faced by exporters and importers in their business. Exporters usually get payments weeks or months after shipping goods. Because of such situations, majority exporters lack capital to carry on the delivery of other orders. They have built an AI-powered guaranteeing technology to enable exporters to receive early payment.
On the other hand, they are helping importers by offering a platform where they are able to diminish the risk of supply chain disruption and set more satisfactory payment terms. And investors are being provided with an alternate asset class to invest in through Incomlend that offers revenues in shorter intervals.
The problems mentioned above have led to various renowned banks becoming hesitant in financing such deals, which has further created a cash crisis among cross-border trading firms globally.
Referring to its own research, the startup said these obstructions have created a US $1.5 trillion trade finance gap, striking mid-cap companies hard. This gap has further deteriorated with Covid-19 affecting the whole world and its economy. They feel that the impact is severe in high-growth regions like Asia where SMEs account for 95% of all businesses and provide two out of three private-sector jobs to the people. Therefore, they need more financing options to meet their accelerating demand. Also, low-interest rates in Asia, and negative rates in Europe are motivating many global investors to seek alternative asset classes.
CEO Morgan Terigi said the startup’s trading platform is able to recruit clients and process deals efficiently with higher flexibility. Incomlend has enabled over US$ 330M in financing and covered invoice finance trades spanning across 50 countries to date.
In October 2019, the startup had launched a new platform named Shipfin Trade Finance to provide trade finance services to clients of logistics group CMA CGM. The firm’s clients will be able to digitally register and undergo a computerized due diligence process, trade via finance applications, track finance activity through dynamic control panels and manage their cash online.
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