Global fintech MODIFI today announced USD 145 million debt financing with existing banking partners Silicon Valley Bank and Solarisbank.
The funds will be used to meet growing demand and help more small and medium-sized businesses trade internationally on MODIFI’s digital platform.
COVID-19 has had a negative impact on exporting and importing SMEs, with the trade finance gap rising to $ 1.7 trillion, 15% more than 2 years ago. As global trade booms and consumer demand increases, they are unable to capitalize on new opportunities and navigate supply chain disruptions.
“2021 has been a difficult year for SMEs, which had to deal with logistics problems and skyrocketing freight rates amid a strong rebound in consumer demand. We were able to step in and help our clients obtain additional liquidity and risk protection, allowing them to fill additional orders and grow their business. We are delighted 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.
The increase in the amount of installation will help meet the growing demand for MODIFI products in the company’s markets around the world. MODIFI has quadrupled its business year over year, with India remaining the largest single market and Greater China, United Arab Emirates and Germany actively accelerating. 2021 kicked off with the launch of MODIFI in the Netherlands, the United States and Bangladesh.
“We are extremely excited at Silicon Valley Bank to strengthen our existing relationship with MODIFI as it continues on its journey to become a leading provider of trade finance products. With trade severely affected by restrictions resulting from COVID-19 and other macroeconomic issues, trade finance has helped reduce the negative effects on businesses related to both exports and imports. Our continued partnership demonstrates the ability of SVB’s warehouse finance platform to play a pivotal role in the growth of cutting-edge fintechs like MODIFI, ”said 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 cash flow and emerge victorious from the current supply chain crisis. There is a growing need for innovative solutions that remove barriers, increase transparency and allow small and medium-sized businesses to negotiate on an equal footing with large businesses. At Solarisbank, we are committed to enabling our partners to scale quickly and serve more customers through our API-based lending platform, ”said Nicolas Knecht, Managing Director of Lending at Solarisbank.
MODIFI is the only digital trade finance platform for SMEs that covers the three main trading regions of Europe, Asia and North America – a cluster that encompasses around 80% of global imports and exports. It provides SMEs with simple digital solutions to finance and manage their transactions, protect them from counterparty risk and easily track their shipments. After increasing its B-Series tour in September, the company is currently working on major upgrades to its digital platform, which will expand the product offering beyond trade finance and allow MODIFI customers to take supports all trade related activities in one place.
MODIFI currently operates from 9 offices in Berlin, Amsterdam, New York, Delhi, Mumbai, Shenzhen, Hong Kong, Dubai and Dhaka.