 "Supply chain fintech VoloFin secures $50 mn in funding from major US bank")
Supply chain financing firm VoloFin on Monday said the company has secured a funding line amounting to $50 million from one of the top five banks based in the United States (US). The name of the investor remains undisclosed.
The Singapore-based fintech firm aims to increase this funding limit to $150 million over the next two to three years.
With the latest funding, the company plans to provide Indian exporters with better access to trade finance.
The company aims to offer Small and Medium Enterprises (SMEs) lending solutions and manage supply chains using financial instruments and technology.
“This is a significant milestone in our growth story, and we will continue to deepen our propositions for underserved SMEs. We are committed to leveraging this funding to bolster our capabilities and bridge the trade finance gap for the exporters, who are the backbone of the economy,” said Roshan Shah, co-founder and chief executive officer (CEO) of VoloFin.
VoloFin has expanded its international presence to countries such as Singapore and the US. It has partnered with lenders globally, including India Exim Bank.
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The development comes at a time when funding to the Indian fintech ecosystem is showing signs of recovery. The sector recorded a 66 per cent year-on-year growth in funding to $778 million in the third quarter of calendar year 2024 (Q3 CY24).
The sector raised $471 million in Q3 CY23, according to data from market intelligence platform Tracxn.
On a quarter-on-quarter basis, funding to the fintech sector more than doubled from $293 million in Q2 CY24.