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Olea Global teams up with Vayana Network for trade financing

written by Bella Palmer

As per the World Bank estimates, Indian MSMEs alone account for a $380 billion credit gap

Digitised supply chain platform Olea Global has teamed up with trade finance platform Vayana Network for providing exporters and importers with timely access to funds, a release said on Thursday.

The partnership will initially focus on making export finance readily available for small and mid-sized exporters. It will address the clear need for products which offer straightforward and fast access to capital, Olea said.

The synergies from the relationship between Olea and Vayana will bring together their unique offerings and provide a focus on long-term value, said the release.

Olea, which is a joint venture between Standard Chartered and Linklogis, brings its extensive structuring capability, state-of-the-art technology platform and access to funding from alternative investors globally.

On the other hand, Vayana is deeply entrenched in the Indian ecosystem and can leverage its close relationships with corporates to provide financing solutions, as per the release.

Over the past few years, there has been growing interest in India as a manufacturing hub, as large multinational corporations seek to diversify their global supply chains, according to the company.

In order to meet this increasing demand, businesses in India –- especially Micro, Small and Medium Enterprises (MSMEs) –- have been looking for quicker access to sources of capital, it stated, adding that traditional lenders tend to have lengthy and opaque documentation processes which make it hard to access this capital.

As per the World Bank estimates, Indian MSMEs alone account for a $380 billion credit gap, according to the release.

Olea said it aims to bring a fresh pool of international capital into the trade and supply chain finance market in India, specifically for small and medium-sized businesses.

Indian MSMEs alone account for 45 per cent of national exports and the value they contribute to the economy increases by around 12 per cent per year. Addressing the credit gap for MSMEs directly impacts their ability to provide employment, among other things. Therefore, the collaboration with Vayana strongly aligns with our desire to empower sustainable trade, said Letitia Chau, Deputy CEO at Olea.

The government, through its 'make in India' programme and production-linked incentive, is offering incentives for Indian manufacturing to become more globally competitive, said Ram Iyer, founder-CEO, Vayana Network.

Combined with the ITFS (International Trade Finance Services) platform and our other cross-border offerings, we aim to provide a wide array of trade finance solutions to businesses, he said.

The partnership with Olea complements our vision of connecting the smallest of businesses with the largest of lenders, Iyer stated.


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