MODIFI announces 145m USD to power international SME trade
By Leandra Monteiro
Global FinTech MODIFI announced 145m USD in debt financing with existing bank partners Silicon Valley Bank and Solarisbank. The funds will be used to address increasing demand and help more small and medium-sized enterprises trade internationally on MODIFI’s digital platform.
COVID-19 has negatively impacted SME exporters and importers, with the trade finance gap widening to 1.7 trillion USD, 15% higher than 2 years ago. As global trade is booming and consumer demand is on the rise, they are unable to capitalize on new opportunities and navigate through supply chain disruptions.
“2021 has been a challenging year for SMEs, who had to cope with logistics issues and skyrocketing freight rates amid a strong rebound in consumer demand. We were able to step in and help our clients get additional liquidity and risk protection, thus enabling them to fulfil extra orders and grow their business. We are excited to continue our partnership with Silicon Valley Bank and Solarisbank and are honored by their commitment to our mission”, said CEO and Co-Founder Nelson Holzner.
He added that, “According to some reports, India’s cost of logistics is 12-13%, higher than the global average of 8%. Over and above that, the CII has said that there has been a 25-30% increase in freight rates owing to the increase in price of diesel. MODIFI has quadrupled its business year on year in 2021 with India remaining the largest market and hence we would want to support our exporter clients in India against any such financial risks and deepen the trust and reliability with our Indian stakeholders.”
“We are incredibly excited at Silicon Valley Bank to build on our existing relationship with MODIFI as it continues on its trajectory to become a leading provider of trade financing products. With trade severely affected by the restrictions resulting from COVID-19 and other macroeconomic issues, trade financing has been instrumental in reducing the adverse effects to businesses relating to both exports and imports. Our continued partnership showcases the ability of SVB’s warehouse financing platform to play a pivotal role in the growth of cutting edge fintechs like MODIFI”, shared Conor Sheehy, Head of Fintech Warehousing at SVB EMEA.
“We are excited to take our partnership with MODIFI to the next level and help more SMEs manage their liquidity and emerge as winners from the current supply chain crisis. There is a growing need for innovative solutions that remove barriers, increase transparency and enable small and midsize businesses to trade on a par with larger corporates. At Solarisbank, we are committed to empowering our partners to scale quickly and serve more customers through our API-based lending platform”, said Nicolas Knecht, Managing Director Lending of Solarisbank.
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