Bank of Maharashtra and Vayana partner to financially support MSMEs

By Leandra Monteiro

Bank of Maharashtra and Vayana Network, a Supply Chain Financing (SCF) platform have partnered to offer financial support to the MSME sector. Through this partnership, Bank of Maharashtra will provide short term credit to meet funding requirements of corporates dealers and vendors through its ‘Mahabank Channel Financing Scheme’.

Vayana Network will provide SCF solutions to Bank of Maharashtra’s 1,870+ branches through its Vayana’s technology and service knowledge. Vayana Networks’ proprietary tech platform will help to digitise the transactions of SCF, while the market services will help to increase penetration in the MSME segment.

Speaking on the development, Mr. A. S. Rajeev, MD & CEO of Bank of Maharashtra said, “Bank of Maharashtra is proud to announce the launch of its Channel Financing solution for MSMEs in partnership with Vayana Network, India’s leading Supply Chain Finance platform. We believe in the power of partnerships, and hence have tied up with leading FinTechs to launch innovative digital offerings. Through this partnership with Vayana, we look forward to offer a fully digital financing experience to our MSME customers, suppliers and distributors of leading corporates”.

Mr. Hemant Tamta, Executive Director of Bank of Maharashtra, said, “MSMEs are the backbone of our economy and Bank of Maharashtra is fully committed to support their recovery and growth in a post pandemic world. Easy and affordable access to working capital is critical to make supply chains resilient and to boost the mission of Atmanirbhar Bharat. The tie-up with Vayana has enabled rapid go-to-market for the Bank and we look forward to adding a robust portfolio within our MSME business through Channel Financing Scheme”.

Speaking about the partnership, Mr. Ram Iyer, Founder and CEO, Vayana Network said, “Supply Chain Finance or Trade Finance has become a critical vehicle for affordable MSME loans. It has especially gained more traction in the post COVID era as both Corporates and their MSME Supply Chains aim to streamline their working capital cycles and liquidity. At this juncture, MSMEs are looking to rebound in 2021 and the ease to access finance is the need of the hour. Our partnership with Bank of Maharashtra, one of India’s most reputed banks will help them to rapidly scale up the SCF portfolio supported by our tech platform at virtually zero risk”.