European fintech MODIFI today announced the launch of its digital export finance in India, with an objective to enable small and medium-sized (SMEs) exporters to thrive and offer attractive payment terms to their international buyers.
A press statement said the company has chosen India as the first market for its expansion into Asia after having successfully launched its digital trade finance platform for SMEs in November 2018 in Europe.
“Alternative lenders like MODIFI can step up to meet any increased demand, we have created a product that benefits Indian exporters as much as possible. As India renews its commitment to digital finance in the recent Budget with initiatives such as TReDS, we are confident the market is ready for MODIFI’s digital platform,” said Nelson Holzner, CEO and Co-founder, MODIFI.
The company also said that its financing is “off balance sheet”, meaning it can be secured in addition to any outstanding loans and without increasing a company’s debt.
The statement read: “Providing faster turnaround times and a seamless experience, MODIFI has enabled SMEs to apply online for collateral-free export finance in less than ten minutes and receive a response within 48 hours. Customers not only grow by getting liquidity otherwise trapped in invoices but, since MODIFI takes the credit risk of the buyer, they can trade with confidence.”
Further, MODIFI’s expansion to India has been fuelled by a €5.5m investment and a partnership with A.P. Moller-Maersk, the world’s largest container shipping company, the company added.
Holzner expects the partnership will give MODIFI credibility amongst Indian exporters. The company expects to finance a volume of $1 billion in India by the year 2022. Its efforts in India are currently focused on spreading awareness of the platform among Indian SMEs and on-boarding them.
Founded in 2018, MODIFI and its paperless online platform attempts to help businesses to foster international partnerships and benefit local economies.