Velotrade secures funding and a partnership with Vynn Capital

By Leandra Monteiro

Velotrade, a Hong Kong-based trade finance company, has secured funding and a partnership with Vynn Capital, a Southeast Asia-focused venture capital firm with investments such as Carsome from Malaysia and Travelio from Indonesia.

Velotrade operates a digital platform that matches corporates in need of working capital with institutional investors willing to advance funds. With the new financing and partnership with Vynn Capital, Velotrade plans to scale its technological infrastructure and expand into new geographies in Southeast Asia.

Launched in 2017, Velotrade has since granted short-term financing of outstanding invoices to thousands of corporates, including Fortune 500 companies and SMEs – demonstrating the urgent need for supplier financing. Furthermore, driven by the objective to provide long-term sustainable results, the company follows prudent risk management and complies with additional risk management rules as the only trade finance platform licensed by the Securities and Futures Commission of Hong Kong. Additionally, Velotrade is continuously adding products to its offering and is very active in e-commerce financing, purchase order financing, export loans, etc.

Through the partnership with Vynn Capital, Velotrade will further scale its operations and expand into Malaysia and other markets of Southeast Asia. In addition to financing, Vynn Capital will actively contribute company-building expertise and provide access to an extensive network of resources in Southeast Asia to Velotrade.

On the partnership with Vynn Capital, Vittorio De Angelis, Executive Chairman and co-founder of Velotrade said, “We are very excited to partner with Vynn Capital. The partnership will help us broaden our geographical reach and further establish our presence in Malaysia and the rest of South-East Asia. When selecting partners, it is of paramount importance to have synergies to exploit, and our two firms have many to share!”

“We believe that the financial sector and capital markets are due for greater enhancement in efficiency. Large financial institutions are looking at how technology and digitization can help grease their wheels and propel themselves forward. Velotrade sits right in the middle of all the action: the pandemic is encouraging demand for their services as there has been a very strong surge in cross-border transactions. We are ready to integrate Velotrade into our portfolio ecosystem, and we have a very optimistic outlook for the company to expand deeper into countries like Malaysia and Indonesia,” Victor Chua, Founding & Managing Partner of Vynn Capital, added.

Vynn Capital recently announced that the firm has joined hands with Tunku Ali Redhauddin ibni Tuanku Muhriz, a Senior Advisor to the leading private equity firm TPG Capital, to support portfolio companies like Velotrade.