Source: Media Outreach
MODIFI will use the funds to expand into the US.
MODIFI’s digital trade finance platform provides SMEs with buyer and seller financing in a matter of days.
MODIFI tripled its business in 2020 and launched in four new markets during the pandemic – China, Hong Kong, UAE and Spain. The trend has continued in 2021 with the launch in the Netherlands.
AMSTERDAM, THE NETHERLANDS – Media OutReach – 17 March 2021 – Global fintech MODIFI announces a new 60m USD debt facility with Silicon Valley Bank (SVB), bringing its total raised capital to 111m USD. The facility from SVB’s German Branch will be used to address increasing demand in existing markets, as well as fuel MODIFI’s continuing growth and finance buyers and sellers in new geographies, particularly the US.
Expansion into the US, paired with the existing coverage, will establish MODIFI as the only digital trade finance platform focused on 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 respectively.
Small and medium-sized businesses are turned down in 50% of cases when requesting trade finance, which has resulted in a 1.5 trillion USD annual funding gap. The pandemic has only exacerbated the situation as risk appetite decreased globally. MODIFI is empowering SMEs to trade internationally and grow, thus benefiting local economies.
“We are excited to partner with Silicon Valley Bank on our journey to digitize the global trade industry, which has traditionally been extremely paper-heavy” says CEO and Co-Founder Nelson Holzner. “The pandemic has forced many analogue processes to move online, and we are seeing more and more SMEs appreciating the value of a platform that provides them with trade finance from their own homes, whenever they need it”.
“We’re pleased to become a new funding partner to MODIFI to support its geographical expansion to the US, further investment in its digital platform and continued growth. Our partnership builds on the momentum of SVB’s warehouse financing platform in EMEA as it showcases our ability to be a key partner in financing global innovators like MODIFI”, says Folake Shasanya, Managing Director of Fintech Warehousing at SVB EMEA.
“Supporting innovation is in our DNA and we are delighted to provide this significant facility to MODIFI through our EMEA warehouse financing team from our SVB German Branch”, adds Christian Hoppe, Managing Director, SVB Germany.
MODIFI tripled their business in 2020 as a result of a strong performance during the pandemic. The increase in demand for digital cash management solutions allowed the company to expand to four new markets in 2020, launching in China, Hong Kong, the UAE and Spain. The trend has continued in 2021 with MODIFI’s launch in the Netherlands. The company currently operates out of 7 offices in Berlin, Amsterdam, Delhi, Mumbai, Shenzhen, Hong Kong and Dubai.
“Despite the unprecedented disruption to the world’s economies, 2020 proved a strong year for MODIFI. As global supply chains were destabilized, SMEs found it harder to trade on favourable credit terms. We were well positioned to step in and address the needs of the market” says Holzner. “Our simple tech solutions allow us to digitally underwrite our customers and provide them with import and export financing in a matter of days”.
– Published and distributed with permission of Media-Outreach.com.