The proceeds will be channeled towards addressing rising demand and help more SMEs with trading internationally on MODIFI’s digital platform.
The COVID-19 outbreak has “negatively impacted SME exporters and importers, with the trade finance gap widening to 1.7 trillion USD, 15% higher than 2 years ago.”
The update also noted that 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.”
CEO and Co-Founder Nelson Holzner stated:
“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.”
Increase in the facility amount should help address increasing demand for the MODIFI products in the firm’s markets worldwide.
MODIFI has quadrupled its business YoY with India “remaining the largest single market, and Greater China, UAE and Germany actively picking up pace. 2021 started off with MODIFI’s launch in the Netherlands, the US and Bangladesh,” the update revealed.
Conor Sheehy, Head of Fintech Warehousing at SVB EMEA., remarked:
“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”
Nicolas Knecht, MD Lending of Solarisbank, added:
“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.”
MODIFI claims to be the only digital trade finance platform for SMEs that “spans the three major trading regions of Europe, Asia and North America – a cluster which encompasses approximately 80% of global imports and exports.”
It offers SMEs with simple digital solutions to “finance and manage their trades, protect them from counterparty risk, and easily track their shipments.”
Having secured its Series B round in September, the company is now “working on major upgrades to its digital platform, which will expand the product offering beyond trade finance and allow MODIFI customers to take care of all trade-related activities in one place,” the update noted.
At present, MODIFI is operating out of 9 offices in Berlin, Amsterdam, New York, Delhi, Mumbai, Shenzhen, Hong Kong, Dubai and Dhaka.