Finverity, the mid-market supply chain finance platform focused on emerging markets, announced the completion of a USD 2m Pre-Series A equity funding round. The proceeds will be deployed in expanding the sales, operations and technology teams to support Finverity’s rapid growth.
Finverity has attracted investment in this round from two main types of investors: specialist fintech and emerging markets investors. Investors in the round include MENA-based B&Y Venture Partners (a leading MENA venture capital fund with strong regional backers including Mubadala Ventures), and Canadian-based Loyal VC (an existing investor in Finverity operating a global start-up index fund with over 200 investments across 50+ countries), an emerging market family office and a number of strategic angel investors.
Finverity has been growing strongly thanks to its fully digital operations, the increasing need from corporates for working capital solutions to aid post-pandemic recovery and an influx of investors into this alternative asset class searching for yield. Following a number of recent senior hires, Finverity is further expanding its sales and business development team to service a growing customer pipeline, its operations team to support rapidly increasing transaction volumes and its technology team to accelerate product development. In 2022 Finverity is planning to open three new offices across MENA and Eastern Europe.
Post-Covid, the global trade finance gap has grown to US$1.7trn. The trade finance gap reflects the shortfall between the amount of trade finance currently being provided and global trade financing needs. Finverity is addressing this gap by focusing on the supply chain finance (SCF) needs of emerging market companies, which make up the largest and most under-served part of the gap, and channelling capital flows to this geographical segment. The appeal of SCF, which lets suppliers get paid quickly while improving buyers’ cash flow, means that total industry revenues for supply chain finance are forecast to post a compound annual growth rate of 3.2% to reach $11 billion in 2030, according to Boston Consulting Group.
Viacheslav (Slava) Oganezov, CEO & Co-Founder of Finverity, commented “The healthy functioning of supply chain finance is pivotal in aiding recovery post-pandemic by keeping the wheels of the global economy turning. By efficiently providing working capital to buyers and suppliers around the world, SCF platforms such as Finverity’s are reshaping the way companies and funders interact within trade finance. We are thrilled to share this vision with our new and existing shareholders and look forward to growing together.”
Finverity’s platform is a complete SCF ecosystem for funders and corporates to transact with one another. The platform provides high-quality deal origination, analysis and structuring alongside matching such mid-market SCF deals with funder mandates (both bank and non-bank). In addition, the platform offers a suite of risk mitigation capabilities and automated transaction servicing to enhance operational efficiency and make the process of investing in SCF assets truly scalable.
Alex Fenechiu, COO & Co-Founder of Finverity, commented, “We’ve always been astounded at the gap between companies’ working capital requirements and the quality of provision offered in the market. The strong demand for Finverity’s offering has confirmed the vast opportunity set when it comes to improving supply chain finance origination and transaction processes.”
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Media contact
Rebecca Morpeth Spayne,
Editor, International Trade Magazine
Tel: +44 (0) 1622 823 922
Email: editor@intrademagazine.com
