Olea, a digitised supply chain platform and Vayana Network, India’s largest trade finance platform have announced a tie-up to provide exporters and importers in India with timely access to alternative liquidity.
Olea is a joint venture between Standard Chartered and Linklogis.
The partnership will initially focus on making export finance readily available for small and mid-sized exporters and it will address the clear need for products which offer straightforward and fast access to capital.
As India emerges as a manufacturing hub, large multi-national corporations are seeking to diversify their global supply chains, to meet this increased demand, small businesses in India are looking for quicker access to source of capital. The World Bank estimates that Indian MSMEs alone account for a $380 billion credit gap.
Ram Iyer, Founder and CEO, Vayana Network, said, “The Government, through its “Make in India” program and Production Linked Incentives (PLIs), is offering incentives for Indian manufacturing to become more globally competitive.”
“Combined with the ITFS (International Trade Finance Services) platform and our other cross border offerings, we aim to provide a wide array of trade finance solutions to businesses. The partnership with Olea complements our vision of connecting the smallest of businesses with the largest of lenders,” Iyer added,
Letitia Chau, Deputy CEO of Olea said: “Olea is passionate about bringing a fresh pool of international capital into the trade and supply chain finance market in India, specifically for small and medium-sized businesses. Indian MSMEs alone account for 45% of national exports and the value they contribute to the economy increases by around 12% per year.”
“Addressing the credit gap for MSMEs directly impacts their ability to provide employment, among other things. Hence, the collaboration with Vayana strongly aligns with our desire to empower sustainable trade,” Chau added.