Vayana Net­work

Vayana Net­work en­ables small­est of firms to have ac­cess to trade fi­nance:

Banking Frontiers - - Contents - Mo­han@bank­ingfron­

Pune-head­quar­tered Vayana Net­work aims to de­moc­ra­tize the ac­cess to trade fi­nance so that the small­est of en­ter­prises can have ac­cess to it. The com­pany of­fers tai­lor-made, af­ford­able, closed loop pro­grams to meet the fi­nanc­ing de­mands of busi­nesses and their sup­ply chain part­ners. With its op­er­at­ing units in the US and Sin­ga­pore and in Mum­bai, Gu­ru­gram and Bengaluru in In­dia, it of­fers ac­cess to low cost fi­nanc­ing with nil or min­i­mal col­lat­eral.

“We help in­crease the work­ing cap­i­tal avail­able to the en­tire sup­ply chain ecosys­tem to grow busi­ness lead­ing to a pos­i­tive im­pact on the coun­try’s GDP,” claims Vinod Par­mar, global head - Sales and Mar­ket­ing at Vayana Net­work. He ex­plains that the com­pany in fact en­ables fi­nanc­ing to sup­port both the sell as well as the buy side of the sup­ply chain, ie on the dealer / cus­tomer as well as the sup­plier / ven­dor side.

“This is through var­i­ous types of short­term trade fi­nanc­ing via fac­tor­ing, buyer fi­nanc­ing, payable fi­nanc­ing or re­verse fac­tor­ing with or without com­mer­cial cards. We en­able both bal­ance sheet or off-bal­ance sheet fi­nanc­ing; as well as pre­ship­ment or post ship­ment fi­nanc­ing, etc on our net­work,” says Par­mar.


He elab­o­rates that Vayana Net­work op­er­ates pre-ap­proved, closed-loop pro­grams on which it en­ables au­to­mated fi­nanc­ing through part­ner banks and fi­nan­cial in­sti­tu­tions. “SMEs and cor­po­rates like the pre­dictable, im­plicit fi­nanc­ing through us where they are not re­quired to take any ad­di­tional steps for ac­cess­ing fi­nance. Also, given our part­ner­ship with some of the lead­ing banks and NBFCs, the SMEs get fi­nanced at sub­stan­tially lower in­ter­est rates.”


The av­er­age ticket size of loans on Vayana Net­work is up­wards of $2500. The com­pany works with the SME and the bank to struc­ture the fi­nanc­ing pro­gram. It also works with the SME to iden­tify and mar­ket the pro­gram to the coun­ter­par­ties, map ap­proved in­voice for­mats and on­board them. The en­tire trans­ac­tion from in­voice ac­cep­tance and ap­proval by the buyer, and fi­nanc­ing of ap­proved in­voices by the fi­nan­cial in­sti­tu­tion, is seam­less and com­pletely dig­i­tal.

What is unique, says Par­mar, is the fact that the trans­ac­tion work­flows are fully au­to­mated and straight through. “None of the coun­ter­par­ties see any changes to their doc­u­ments or pro­cesses and there is no need for in­vest­ment in new tech­nol­ogy. The SME sim­ply needs to al­lo­cate sub-lim­its with the fi­nan­cial in­sti­tu­tion and in­tro­duce the coun­ter­par­ties who en­ter into a dis­count agree­ment to get onto the pro­gram. The sell­ers cre­ate elec­tronic in­voices through their own ac­count­ing sys­tems and present them through our cloud-based net­work. The buyer pro­vides ac­cep­tance that is non-re­pu­di­a­ble. The seller gets a di­rect credit to his bank ac­count and the buyer re­pays the fi­nan­cial in­sti­tu­tion on due date. Our pro­pri­etary pars­ing tech­nol­ogy and work­flow en­gine val­i­date, route and rec­on­cile trade doc­u­ments and pro­vide re­ports with in­voice-level rec­on­cil­i­a­tion. The en­tire trade trans­ac­tion is cap­tured dig­i­tally en­abling elec­tronic fi­nan­cial au­dit,” he ex­plains.


Since lend­ing to the seg­ments that Vayana Net­work cov­ers in­volves cer­tain de­gree of risk, how are mit­i­ga­tion mea­sures evolved and im­ple­mented?

Par­mar main­tains that the fi­nanc­ing pro­grams are based on ex­ist­ing trade flows be­tween the coun­ter­par­ties. As such, lim­its are pre-ap­proved and used only to fund valid trans­ac­tions in a par­tic­u­lar pro­gram. “All in­voices are ap­proved by the buyer and are non-re­pu­di­a­ble. There have been no in­stances of non-pay­ment, de­fault or delin­quency on any of our fi­nanc­ing pro­grams till date,” says he.

Vayana Net­work cov­ers some 15-16 dif­fer­ent sec­tors from man­u­fac­tur­ing, au­to­mo­tive, steel and tex­tiles to FMCG, elec­tri­cals, elec­tron­ics, pharma, en­ergy to eCom­merce. It has sourced fi­nance for the SMEs from PSU, pri­vate and for­eign banks as well as lead­ing NBFCs. IDG Ven­tures and Jun­gle Ven­tures of­fered Se­ries A fund­ing of $4 mil­lion to the com­pany in 2017.


Par­mar says as the busi­ness gets ma­tu­rity, the com­pany would, with its strong ex­pe­ri­ence in sup­ply chain fi­nanc­ing, con­verge the 2 ca­pa­bil­i­ties and fur­ther en­hance its of­fer­ings to all the stake­hold­ers. “We in­tend to take the con­ve­nience and ac­cess to low-cost fi­nance all the way down to the last tiers of sup­pli­ers and re­tail­ers in a sup­ply chain. We an­tic­i­pate tens of thou­sands of en­ter­prises com­ing on­board to do away with their work­ing cap­i­tal wor­ries. Over the next 3-5 years, we will clearly emerge as a truly global player in the B2B short-term trade fi­nanc­ing space. We are al­ready live in the US and will soon launch our ser­vices in South East Asia. Ul­ti­mately, we ex­pect to have our cus­tomers from 50+ coun­tries soon,” says he.

Vinod Par­mar ex­plains that Vayana Net­work fi­nances both the sell and the buy side of the sup­ply chain

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