Incomlend, a Singapore-headquartered startup that operates a trading platform to connect exporters and importers with investors, raised $ 20 million in a new financing round on Tuesday.
Sequoia India, the investment arm for India and SEA of the US-based venture company and headquarters, led the Series A round in the four-year-old Incomlend. The CMA CGM Group, one of the world’s largest shipping and logistics companies, also took part in the round.
Similarly, importers can use their platform to minimize the risk of supply chain interruptions and set more favorable payment terms. And investors have found a new alternative asset class through Incomlend that they can invest in in less time.
These barriers have led traditional banks to withdraw from funding such businesses, leading to a money crisis for cross-border trading companies worldwide. “This has created a $ 1.5 trillion trade finance gap that has hit midsize businesses hard. This gap has worsened with Covid-19, “the startup quoted its own research results.
“The impact is acute in high-growth Asia, where SMEs – which make up more than 95% of all businesses and provide two out of three private jobs in the region – need more funding options to meet their growing demand. In addition, low rates in Asia – and negative rates in Europe – are prompting many global investors to look for alternative asset classes, ”said the startup.
Morgan Terigi, co-founder and managing director of Incomlend, said the startup’s trading platform has the ability to retain customers and do business in a more timely and flexible manner. Incomlend has raised over $ 330 million in finance to date and covered the invoice finance trade in 50 countries.
“The massive trade finance gap coupled with falling global interest rates and the high credit quality of Incomlend customers has helped them build a compelling business that will help solve one of the most important challenges facing global SMEs,” said Abheek Anand, Managing Director at Sequoia Capital India. in a statement.
Terigi said the startup will use the fresh capital to expand into Europe, Southeast Asia and North Asia and add to its technology stack.