Vayana Gets NBFC Licence From RBI, Eyes $20 Mn Fundraise

SUMMARY

While Vayana is in talks with existing backer SMBC Asia Rising Fund for the round, the fintech is also scouting a fresh investor to lead the potential fundraise

The NBFC licence will enable Vayana to sign co-lending partnerships with large lenders, and take part of the loan exposure on its own books

In August 2024, Vayana raised $20.5 Mn as a part of its Series D round led by SMBC Asia Rising Fund, valuing the PayU-backed fintech platform at $240 Mn

Supply chain financing platform Vayana has reportedly received a non-banking finance company (NBFC) licence from the Reserve Bank of India (RBI).

Sources told Economic Times that the Pune-based fintech startup, buoyed by the fresh licence, now plans to raise an additional $20 Mn (INR 173.88 Cr) in funding to fuel its NBFC business. As per the report, existing backer SMBC Asia Rising Fund could lead the round.

While the talks are yet to be finalised with SMBC, Vayana is also said to be scouting a fresh investor to lead the potential fundraise.

“This will be an extension of the previous round, while the first tranche was made last year, the second tranche was on the condition of the NBFC licence coming through. Now that the nod has come, the second tranche will be infused,” a source reportedly added.

Inc42 has reached out to Vayana regarding the developments and the story will be updated after receiving a response from the company.

Meanwhile, the NBFC licence will also reportedly enable Vayana to sign co-lending partnerships with large lenders, and take part of the loan exposure on its own books. However, as of now, the startup plans to continue operating as an aggregator platform, which sourcing customers for banks and other NBFCs.

“With the regulatory environment tightening, the RBI wants banks and NBFCs to preferably work with licensed fintechs through deep partnerships. Hence, Vayana’s partners will also draw comfort from the fact that it is an NBFC…,” another source added reportedly.

This comes nearly six months after Inc42 exclusively reported that Vayana had raised $20.5 Mn as a part of its Series D round led by SMBC Asia Rising Fund, valuing the PayU-backed fintech platform at around $240 Mn.

Founded in 2009 by Ramaswami Iyer, Vayana Network is a B2B financial intermediary that connects small businesses and corporates with financial institutions for low-cost access to trade loans. The company claims to have so far enabled loans worth over $10 Bn to 1.5 lakh small businesses across 25 different sectors.

The startup claims to have a presence across 600 cities in India and 20 countries across the globe.

Competing against the likes of Vivriti Capital, Yubi, KreditBee, and FinAGG, the fintech startup has raised more than $77 Mn in funding to date and counts names such as CDC Group, IFC, Jungle Ventures, and PayU as its backers.