Mumbai-based trade financing startup Vayana Network is raising $20 million (INR 170.8 crore) in its Series D funding round. This round is led by a new investor, the SMBC Asia Rising Fund, which contributed INR 62.6 crore.
The funding round will also see participation from Jungle Ventures, Chiratae Ventures, International Finance Corporation (IFC), and Deep Financial. Sources indicate this is a tranche of the ongoing Series D funding round.
After the allotment, SMBC Asia Rising Fund will hold a 3.25 percent stake in Vayana Network, while IFC will own 5.66 percent. Vayana Network will be valued at approximately $240 million post-funding.
This development comes almost two years after Vayana Network raised INR 140 crore ($15 million) in its Series C round. This investment followed a $38 million funding from Chiratae Ventures, CDC Group, and Jungle Ventures.
Vayana Network’s Growth and Impact
Founded in 2009 by Ramaswami Iyer, Vayana Network is a B2B trade financial intermediary connecting SMEs and corporates with financial institutions for low-cost trade loans. The startup claims to have facilitated over $10 billion in finance, including over a billion dollars through B2B card flows to over 1.5 lakh MSMEs across 1,000 supply chains in 25 sectors.
Vayana connects over 1,000 corporates and their trade ecosystems, providing digital, convenient, and affordable credit access for payables and receivables. The startup operates across 600 cities and 1,400+ pin codes in India and 20 countries globally. Additionally, it is a GST Suvidha Provider (GSP), offering services to numerous corporates and SMEs.
Vayana Network has raised around $57 million to date, with backers including CDC Group, IFC, Jungle Ventures, and PayU. In 2021, Vayana Network received in-principle approval to set up an ITFS (International Trade Finance Services) platform at GIFT City (Gujarat) under the International Financial Services Centres Authority (IFSCA).
Recent Funding Details
The board at Vayana Network has passed a special resolution to issue 14,62,341 Series D CCPS at an issue price of INR 1168.27 each, raising INR 170.8 crore ($20.5 million), as per the regulatory filing accessed from the Registrar of Companies (RoC).
SMBC Asia Rising Fund led the round with INR 62.6 crore. Chiratae Ventures and IFC contributed INR 41.74 crore and INR 24 crore, respectively. Jungle Ventures, Quantum-state investment fund, and Emerald cumulatively invested INR 42.4 crore. The firm plans to use these proceeds for expansion and general corporate purposes.
According to reports, Vayana Network is valued at approximately INR 1,925 crore ($232 million) post-allotment. Vayana Network last raised $15 million in its Series C round in April 2022 from IFC and PayU, bringing its total funding to around $75 million.
In December, Vayana Network partnered with Singapore-based InvestaX to offer debt-based financial products in APAC markets. For the fiscal year ending in March 2023, Vayana Network reported INR 115 crore in revenue from operations, compared to INR 43 crore in FY22, while its losses doubled to INR 78 crore. The firm has yet to file its annual financial report for FY24.
Vayana Network competes with Vivriti Capital, Yubi, KreditBee, and FinAGG in the trade financing sector.
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