Tag: vayana network

To strengthen TReDS, Factoring Amendment Bill passed by Lok Sabha, BFSI News, ET BFSI

Banking & Finance

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The Factoring Amendment Bill which was introduced in the Lok Sabha last year was passed on Monday. The Bill seeks to amend the Act of 2011 and widen the scope of entities which can engage in factoring business.

This Bill is aimed at increasing the traction on the Trade Receivables Discounting System (TReDS) platform introduced by the Reserve Bank of India in 2014.

The Bill will also help the micro, small and medium enterprises (MSME) which are plagued by the issues of delayed payments. Finance minister Nirmala Sitharaman said that the government had also accepted the recommendations by the Standing Committee which had looked into the Bill last year.

Commenting about the Bill, Ram Iyer, Founder & CEO, Vayana Network, said, “This has been a much-needed intervention. Allowing non-NBFC factors and other entities to undertake factoring is expected to increase the supply of funds available to SMEs. This may result in bringing down the cost of funds and enable greater access to the credit-starved small businesses, ensuring timely payments against their receivables. The recommendations of the Standing Committee are expected to increase the traction of TReDS platforms. Steps like integration with GSTN, mandatory listing of the government dues and direct filing of charges will improve the operational efficiency and acceptability of the platforms among the financiers.”

TReDS, which was introduced to improve liquidity with small businesses, has not been able to take off properly. According to the data accessed by ET, of the total transaction volume of about Rs 36,000 crore conducted by the three TReDS exchanges in India so far, only Rs 2,700 crore was from central public-sector enterprises (CPSEs).

TReDS works as an exchange between lenders, buyers and MSMEs. Lenders bid to settle the claims of an MSME supplier upon the acknowledgment of the invoice by the buyer. The buyer then repays the lender, which is usually a bank, after a predetermined period.

There is no collateral involved, and lenders consider the buyer’s credit rating while paying the supplier. RXIL, Invoicemart and M1Xchange are the three TReDS platforms.

(With inputs from ET Bureau)



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Bank of Maharashtra, Vayana Network tie up for channel financing

Banking & Finance

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A S Rajeev, MD & CEO of BoM, said they were looking at offering a fully digital financing experience to MSME customers, suppliers and distributors of leading corporates.

Bank of Maharashtra on Thursday entered into a strategic partnership with fintech company Vayana Network to offer channel financing service for MSMEs. Vayana is India’s largest supply chain financing platform offering financial support to MSMEs. Through this partnership, BoM has launched the Mahabank Channel Financing Scheme to provide short-term credit to meet funding requirement of dealers and vendors of corporates.

A S Rajeev, MD & CEO of BoM, said they were looking at offering a fully digital financing experience to MSME customers, suppliers and distributors of leading corporates. “We believe in the power of partnerships, and hence have tied up with leading fintechs to launch innovative digital offerings.” Ram Iyer, founder and CEO, Vayana Network said, supply chain finance or trade finance has become a critical vehicle for affordable MSME loans. SCF has gained more traction in the post-COVID era as both corporates and their MSME supply chains aiming at streamlining their working capital cycles and liquidity.

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Bank of Maharashtra partners with Vayana Network to offer help MSMEs, BFSI News, ET BFSI

Banking & Finance

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Bank of Maharashtra (BoM)has entered into a strategic partnership with Vayana Network to offer financial support to the MSME sector. Through this association, BoM will provide short term credit to meet funding requirements of dealers of corporates via “Mahabank Channel Financing Scheme” launched by the bank, through Vayana Network’s expertise in this segment.

Under the partnership, Vayana Network will provide its Supply Chain Financing solutions (SCF) to the bank supported by Vayana’s technology and service expertise. The SCF solutions will include vendor and dealer financing programs across bank’s network of 1,870 branches across the country. Vayana Network’s proprietary tech platform will help to digitize the transactions of Supply Chain Financing, while the market services will help to increase penetration in the under-served MSME segment.

In a statement, AS Rajeev, MD & CEO of Bank of Maharashtra said, “We believe in the power of partnerships, and hence have tied up with Fintechs to launch innovative digital offerings. Through this partnership with Vayana, we look forward to offer a digital financing experience to our MSME customers, suppliers and distributors of leading corporates.”

“MSMEs are the backbone of our economy and Bank of Maharashtra is committed to support their recovery and growth in a post pandemic world. Easy and affordable access to working capital is critical to make supply chains resilient and to boost the mission of Atmanirbhar Bharat. The tie-up with Vayana has enabled go-to-market for the Bank and we look forward to adding a robust portfolio within our MSME business through Channel Financing Scheme,” said Hemant Tamta, Executive Director of Bank of Maharashtra, in a statement.

Ram Iyer, Founder and CEO, Vayana Network, in a statement said, “Supply Chain Finance or Trade Finance has become a critical vehicle for affordable MSME loans. It has especially gained more traction in the post COVID era as both corporates and their MSME supply chains aim to streamline their working capital cycles and liquidity. At this juncture, MSMEs are looking to rebound in 2021 and the ease to access finance is the need of the hour. Our partnership with Bank of Maharashtrawill help them to rapidly scale up the SCF portfolio supported by our tech platform at virtually zero risk.”

Vayana Network has enabled over $6 billion (Rs. 45,000 crores) in trade finance for 300 supply chains in 25 different industries. The company connects corporates and their trade ecosystems to provide digital, convenient and affordable access to credit for their payables and receivables. Vayana has processed over 1.7 million transactions and offers a zero-change experience to customers. It is present in 600 cities in India and 20 countries across the globe.



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