Embedded Finance Firm Sonovate Parnters with Demica to Enhance Trade Reporting

Sonovate, the provider of embedded finance and payment solutions for the contingent workforce, announced a partnership with Demica, the trade finance Fintech firm, in order to streamline its reporting processes so it may support business customers across the globe.

Under the terms of the partnership, Sonovate will reportedly use Demica’s Platform to allow it to lend more effectively  to more clients, thus helping to expand Sonovate’s user base and business operations.

The partnership between Demica and Sonovate was vital to the recently announced securitization deal valued at £165 million with BNP Paribas and M&G Investments.

As mentioned in the announcement, Sonovate will be integrating Demica’s robust reporting tools into its own systems, thus improving its operations, finance, and credit control processes.

Developed during the past two decades, Demica offers a flexible Cloud-enabled reporting platform to supply chain and trade finance providers, a category of lending businesses that’s underserved by Fintech innovation.

The Demica platform is described as being scalable, making it a suitable partner for Sonovate’s requirements.

As tech continues to enhance the finance sector, collaborations like this one give businesses more options when it comes to operational structure management, empowering them to operate in an effective manner.

Sonovate co-founder and co-CEO Richard Prime stated:

“At Sonovate we’re committed to building an ecosystem of integrated fintech services that will revolutionise funding and payments for our business customers and serve their exacting, unique needs. We’re excited about this partnership with Demica, whose solutions boost many of our financial and operational processes, as well as allowing us to deliver more flexible funding and increase capacity for export financing.”

Demica Managing Director, Working Capital Solutions Markus Musielak remarked:

“We are delighted to be working with Sonovate to complement its skillset and further enhance existing reporting processes. By combining our financial expertise and advanced technology, we are directly supporting Sonovate’s impressive growth trajectory.”

Buoyed by this demand for tech-driven transformation in financial services and the shift toward flexible working, Sonovate has funded over £2.75 billion in invoices.

In 2021, the firm had recorded a 58% YoY increase in annual funding. During the same period, its enterprise lending volume surged by 144%, and enterprise customers currently account for around a third of its overall lending volume.

Over 3,300 firms funded by Sonovate have paid more than 30,000 freelancers, contractors, and gig workers in over 40 different countries.

Sonovate is now on track to provide £1.3 billion in funding this year – an increase of 85% on aggregate funding in 2021, a year in which the firm nearly doubled its previous annual funding record.

Prime added:

“As Sonovate continues to grow and serve more customers in more industries and geographies than ever, it is hugely important to us to develop and retain as much flexibility in the way we fund and provide technology solutions as possible. Our first securitisation and this partnership with Demica are key examples of that long-term strategy in play. Never has access to flexible, on-demand funding and financial services technology been so hotly demanded by businesses, and we’re excited to be working with Demica to optimise our operations in such a way that enables us to satisfy that demand in the fast-evolving recruitment space.”

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