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MODIFI Targets $4.5 Bn In SME Cross Border Finance In 5 Years

Updated: Dec 01, 2023 05:25:16pm

MODIFI Targets $4.5 Bn In SME Cross Border Finance In 5 Years

New Delhi, Dec 1 (KNN) Fintech firm MODIFI has set an aim to increase its small and medium-sized enterprises (SME) cross border finance book to USD 4.5 billion in next five years, from USD 2 billion currently, co-founder and CEO Nelson Holzner told FE.

Confident to triple the business in next five years, he further said, “Obviously situations like Covid-19 can derail plans but we would like to triple the business to USD 4.5 billion.”

The Amsterdam headquartered fintech provides digital financing options to SMEs for cross-border payments. Through the platform, SME exporters can get instant finance from the fintech against their invoices and the buyer can experience the “Buy Now Pay Later” model wherein they have the option to pay back the fintech within 30-120 days, reported FE.

The core difference between MODIFI and India’s homegrown Trade and Receivable discounting system (TreDS) is that the former has partnered with two global insurance companies which provide full repayment against potential frauds and non-repayment of loans whereas TreDS platforms do not have an insurance guarantee.

MODIFI presently has over 1,600 SME clients, 500 of which are from India, and can onboard 1,000 new clients in the next year, the fintech’s management said.

Separately, the fintech could also look at raising funds to the tune of $200 million in 2024 from new and existing investors which include HSBC, Goldman Sachs and Maersk. It had raised USD 100 million from HSBC Innovation Banking Unit UK in July earlier this year.

According to reports, Indian exports reached USD 770.18 billion in FY23, up 14% on a yearly basis, and the manufacturing export market alone could grow to USD 1 trillion by 2028. 

(KNN Bureau)


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