MODIFI Gets Strategic Investment From SMBC Asia Rising Fund

SME-focussed fintech startup MODIFI has secured a strategic investment of $15 Mn (around INR 126 Cr)  led by SMBC (Sumitomo Mitsui Banking Corporation) Asia Rising Fund. 

The round also saw participation from existing investors Maersk, Intesa SanPaolo and Heliad, the company said in a statement.

The Japan-based bank SMBC’s VC fund has supported MODIFI in terms of both investment and strategic partnership, it added. 

Besides investment, MODIFI and SMBC have signed a Memorandum of Understanding (MoU) to bolster digital solutions to support SME exporters across Asia in expanding their international trade operations.

The collaboration is aimed at facilitating SMEs with cross-border financing solutions. 

Further, the fresh capital will help MODIFI to enhance its presence in high-growth markets like China and India, as per the statement. 

Founded in 2018 by Nelson Holzner, Jan Wehrs and Sven Brauer, the platform provides SMEs with simple digital solutions to finance their trades, protect them from counterparty risk, and easily track and manage their shipments.

“With this fresh funding, we’re set to redefine global trade finance—ensuring businesses of all sizes can unlock the liquidity and get the protection they need to grow internationally, ” said Holzner. 

The New Delhi-based startup claims to offer instant working capital approval, alongside integrated risk management tools that shield businesses from buyer defaults and fraud.

The strategic investment comes at a time when the Indian fintech ecosystem is witnessing a revolution with the advent of Artificial Intelligence (AI). Neobanking and BNPL (Buy Now Pay Later) are few recent concepts brought in with digitalisation. 

In the fintech space, not only new entrants are emerging, but the existing startups are also making some noteworthy moves. 

Recently, listed fintech startup Veefin Solutions has picked up a 50% stake in Singapore-based GenAI startup Walnut in an all-cash deal.