Global fintech MODIFI announced 145M USD in debt financing with existing bank partners Silicon Valley Bank and Solarisbank. The funds will be used to address increasing demand and help more small and medium-sized enterprises trade internationally on MODIFI’s digital platform.
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COVID-19 has negatively impacted SME exporters and importers, with the trade finance gap widening to 1.7 trillion USD, 15% higher than 2 years ago. 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.
“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,” says CEO and Co-Founder Nelson Holzner.
Increase in the facility amount will help address growing demand for the MODIFI products in the company’s markets worldwide. MODIFI has quadrupled its business year on year 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.
“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,” says Conor Sheehy, Head of Fintech Warehousing at SVB EMEA.
“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,” says Nicolas Knecht, Managing Director Lending of Solarisbank.
MODIFI is 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 provides SMEs with simple digital solutions to finance and manage their trades, protect them from counterparty risk, and easily track their shipments. Having raised 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.
MODIFI currently operates out of 9 offices in Berlin, Amsterdam, New York, Delhi, Mumbai, Shenzhen, Hong Kong, Dubai and Dhaka.
About MODIFI:
MODIFI is a global fintech company that helps small and medium sized businesses (SMEs) finance and manage their international trades. Serving over 1,000 buyers and sellers across more than 40 countries, MODIFI offers simple digital solutions that enable SMEs to trade like large corporates. Through its digital platform the company empowers businesses to grow, fostering strong international partnerships and benefitting local economies. To see how small and medium sized businesses can grow with MODIFI,