London-based digital supply chain finance startup Finverity has raised £4m to address the funding gap in global trade finance.
Finverity was founded in 2017 to modernise supply chain finance, a form of financing that allows companies to access funds quickly based on the value of outstanding receivables.
The startup offers two key products to clients: a funding platform that connects companies seeking capital with funders looking to deploy cash into mid-market assets, and a software as a service (SaaS) product for banks and other financial institutions involved in supply chain finance.
“The pace at which our industry is evolving is truly impressive. Five years ago, supply chain finance (SCF) barely ever made the headlines. It wasn’t even a ‘real’ financial product in many countries,” said Finverity co-founder and COO Alex Fenechiu.
“Today, it’s deemed a key requirement to fuel economic growth for the years to come. This means we have moved into the mass adoption phase of SCF. What is needed today is very different from what has been used for the last 20 years.”
The funding round included Outward VC, along with Acrobator Ventures, S16VC Founders Fund, and B&Y Venture Partners.
“Whilst technology has powered exponential growth of the multi-trillion dollar SCF and trade finance industry in developed economies over the last decade, some of the world’s most important emerging economies have been somewhat left behind,” said Andi Kazeroonian, investment manager at Outward VC.
Kazeroonian said the “prohibitively high set-up costs” and “complex integration requirements” mean paper-based processes remain for now the market norm.
“Finverity team’s deep understanding of these acute pain points has enabled the creation of a solution that is truly fit for purpose.”