Incomlend, a global online invoice trading platform, has completed a US$ 20 million Series A round led by Sequoia India. The CMA CGM Group, a shipping and logistics provider, also participated in the round.
Incomlend’s global invoice exchange platform connects exporters and importers with institutional investors. Exporters can get paid early for supplied goods and services while importers can extend payment terms and minimise the risk of supply chain disruption.
Investors, meanwhile, can access an attractive new alternative asset class and accelerate return on capital. The low-interest rates in Asia and negative rates in Europe are prompting many global investors to seek alternative asset classes.
To date, the company has facilitated over USD330 million in financing and covered invoice finance trades across 50 countries.
The company will use the Series A round to drive expansion into Europe, Southeast Asia, and North Asia, while advancing its technological development in digital invoice finance underwriting and processing.
Increased regulation in the post-Basel I and Basel II era has driven up compliance-related costs borne by lenders, prompting banks to pull back from all but the largest trade finance deals. This has led to a $1.5 trillion trade finance gap, hitting mid-cap companies hard. This gap has worsened with COVID-19.
More than 40% of trade finance applications from small and medium enterprises (SME) are rejected by banks, according to a 2019 report by the Asian Development Bank. 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.
“International trade is the cornerstone of Asia’s economy, and we aim to help exporters develop their business by providing alternative working capital finance when and where they need it,” said Morgan Terigi, CEO and Co-founder of Incomlend.
“Our partnership with CMA CGM and Sequoia India is a major milestone for Incomlend’s growth and drive toward creating a stronger, safer and more efficient trade finance environment globally.”
“Incomlend’s technology platform is bringing much needed financial innovation to the backbone of global trade,” said Abheek Anand, Managing Director, Sequoia Capital (India) Singapore.
“The massive trade finance gap, combined with declining global interest rates and the high credit quality of Incomlend’s customers, has helped them create a compelling business that helps solve one of the most important challenges faced by global SMEs.”
Incomlend was founded in 2016 by Morgan Terigi and Dmitri Kouchnirenko. As part of the series A fundraise, the company has appointed a new Deputy CEO, Marc Mathenz.
Marc has more than 15 years’ experience in the fintech and payments space. He served as the Asia Pacific Regional Managing Director for both Fiserv as well as First Data over the last 10 years and has an MBA from the London Business School.