MODIFI secures $145m in debt financing to boost SME trade support
SME-focused digital trade finance platform MODIFI has secured $145 million in debt financing with existing bank partners Silicon Valley Bank and Solarisbank.
The firm says the debt financing will be used to help more small and medium-sized enterprises trade internationally on its digital platform.
MODIFI helps SMEs finance and manage their international trades, track and manage their shipments and reduce counterparty risk. The start-up aims to make it easier for companies to overcome traditional barriers to entry and grow their businesses to boost local economies.
The COVID-19 pandemic has negatively impacted SME exporters and importers, MODIFI says, and with global trade and consumer demand on the rise it is becoming more difficult to navigate supply chain disruptions.
CEO Nelson Holzner says: “2021 has been a challenging year for SMEs, who had to cope with logistics issues and skyrocketing freight rates amid a strong rebound in consumer demand.
“We were able to step in and help our clients get additional liquidity and risk protection, thus enabling them to fulfil extra orders and grow their business.”
MODIFI says it has quadrupled its business year-on-year with India remaining the largest single market.
In September, MODIFI closed a Series B funding round worth €20 million.
The fundraise, led by investor Heliad Equity Partners, brought the fintech’s valuation to more than €100 million.