As it was announced recently that, Incomlend, a trading platform based in Singapore that focuses on connecting the exporters with importers has managed to raise a capital of $20 million in a new financing round.
India and SEA Investment arm, Sequoia India which is the storied U.S. headquartered firm organized the Series A round in Incomlend which has crossed four years in the business world. The round was also attended by one of the world’s largest shipping and logistic firms like the CMA CGM group.
While citing its own research, the startup said,“This has led to a $1.5 trillion trade finance gap, hitting mid-cap companies hard. This gap has worsened with Covid-19.
The invoice trading platform of Incomlend is actually going to solve the three major issues. The first is the delayed payment of the exporters which they receive weeks or months after their shipment and because of this they also lack the capital to carry out their work.
Incomlend says that it will be employing AI-powered underwriting technology so that they can receive early payments. Similar to this they are also going to minimize the risk of supply chain disruption and will be coming with more preferred payment terms that work on both sides.
Along with this, the investors were able to discover a new replacement asset class to invest through Incomlend which will be providing returns in a shorter period of time.
“The impact is acute in high-growth Asia where SMEs — which account for more than 95% of all businesses and provide two out of three private-sector jobs in the region — need more financing options to meet their growing demand. Further, low-interest rates in Asia — and negative rates in Europe — are prompting many global investors to seek alternative asset classes,” the startup said.