SUMMARY
Veefin will add product lines and ensure seamless customer servicing for global clients, said CEO Raja Debnath
The startup will also utilise the funds to build its product and engineering teams
It was founded by Raja Debnath and Gautam Udani in 2018
Supply chain financing (SCF) startup Veefin has secured $3 Mn in its series-A funding round from Dubai-based high net worth individual (HNI) Rajesh Rajendran.
The Mumbai-based startup will utilise the funds to build its product and engineering teams. These will help to enhance its supply chain financing technology matching the market’s constantly evolving dynamics, the startup said in a statement.
Talking about the same, Veefins cofounder & CEO, Raja Debnath said, “With this funding, we will further amplify Veefin’s feature rich platform, add further product lines, and ensure seamless customer servicing for our global clients.”
Founded in 2018 by Raja Debnath and Gautam Udani, Veefin’s configurable SCF platform provides financiers with the shortest implementation timelines for SCF implementations.
The startup further said Veefin is currently witnessing a strong order bookings for the coming two quarters and a robust demand from global clients, and this growing demand necessitated this funding round.
Growing Fintech & Supply Chain Financing Space
Along with the growth in the fintech space, supply chain finance has also grown as a major way for financing.
Fund flow into the B2B fintech space has witnessed a healthy trend. Examples are plenty in this space.
Last month, Mumbai-based supply chain finance provider Vayana Network raised INR 283 Cr ($38 Mn) in a Series C round.
Digital lending is one of the fastest-growing segments in India’s evolving fintech industry. As per a Statista report, India’s digital lending market grew from $9 Bn in 2012 to $150 Bn in 2020, slated to reach $350 Bn by 2023.
The value of supply chain financing currently is around INR 60,000 Cr. However, this is just 10% of the total addressable market for supply chain financing. The total market is estimated to be around INR 18 Lakh Cr based on the value of invoices raised by the suppliers to businesses.
According to Inc42 Plus analysis, within fintech, lending is amongst the hottest sectors right now. In Q3 2021, fintech startups raised $2.7 Bn in funding. Out of the total 79 deals reported in fintech, about 35% or 28 were grabbed by the lending tech sector. The sector attracted $547 Mn in funding.
Recently, Chennai-based CredAvenue, which connects enterprises with lenders and investors, raised $90 Mn in Series A funding led by Sequoia Capital, taking the startup’s valuation to $410 Mn.
Further, supply chain financing platform CredAble raised $30 Mn from Plutus Wealth Management and existing investor Oaks Assets Management recently.
BNPL startup Capital Float raised $50 Mn in equity funding to strengthen and scale the platform and expand its partner ecosystem. Corporate retail financing startup Progcap also raised $30 Mn equity capital in Series C funding.
Some of the other lending startups in the supply chain financing ecosystem include Indifi, CashFlo, Ftcash, and CashE.
