Vayana Network–Aiming to boost GDP through MSME funding

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Vayana-NetworkThree things are vital for the survival of any Micro, Small and Medium Enterprise (MSME) in India – easy access to finance, at a fair price and most importantly, convenient access to these. Vayana offers affordable programmes to meet the financing demands of any MSME working with any credit-worthy corporate on the basis of their trade track record. Financing is made available from Vayana’s lending partner institutions with simplicity and speed, says Vinod Parmar, Global Head – Sales & Marketing, Vayana Network, in an exclusive interaction with Rakesh Roy of Elets News Network (ENN).  

What role is Vayana Network playing for boosting Financial Inclusion within MSMEs?

The MSME sector plays a key role in the country’s economy, thus the current Government has given a lot of impetus to mobilise credit and funding for this critical sector. Aligned with this vision, Vayana Network has been working as a catalyst between MSMEs and Lending Partners like banks, Non-Banking Financial Companies (NBFCs), etc. to enable working capital finance for MSMEs in a seamless manner.

Traditionally, any MSME trading with mid or large corporates – be it as a seller or buyer, has to present a lot of financial and trade documents to the lender for getting the funding. Rather than relying on traditional financial documents like balance sheet, asset holdings of the SME and/ or the corporates, Vayana Network focuses on the long trade history between them and the same is presented to the lending partners for financing. Our fully electronic /digital supply chain finance network is able to provide relevant documents of trade between the SMEs and the corporates to the lending partners.

The network enables financing against all trade documents like invoices, indent and purchase order, etc. between MSMEs and corporates through a simple collaborative process. Also, we have brought a lot of security layers from a technology standpoint where the lending partners can see the confirmed trade between the buyer-seller conductedon our network in an automatic mode.

Vayana Network is the pioneer in B2B trade financing through simple and affordable programs by minimising all the friction and eliminating the manual ways of accessing finance.

What are the USPs of Vayana that really matter to MSME?

Three things are vital for the survival of any MSME in India – easy access to finance, at a fair price and most importantly, convenient access. We offer affordable programmes to meet the financing demands of any MSME working with any credit-worthy corporate on the basis of their trade track record. Financing is made available from Vayana’s lending partner institutions with simplicity and speed.

The biggest benefit to MSMEs is the simplicity through which they can access finance at a transaction level at the click of a button, with no change in their existing processes, formats and technology. For larger Corporates Vayana offers ERP integrated solutions to ensure seamless transaction processing as well as reporting. Users on Vayana Network require hardly any training as they do not perform any new activity to get financed. Vayana’s invoice level reconciled reports and notifications have been found tremendously helpful by all stakeholders

We, at Vayana, have focused on taking care of all the three issues that are core to the survival of any MSME.

What are the sectors you are working on? Tell us about the reach of your services across sectors?

Over the past few years, Vayana has seen great traction across sectors such as manufacturing to e-commerce. Today we are working with over 18 different sectors ranging from Automobile, Steel, Electrical, FMCG, Cable & Machinery, Pharma, Textile and Garments, etc.

We cater to almost all the industry segments where transactions are captured through electronic mode. Our Network spans across 26 states in India and engages with thousands of MSMEs. We are now recognised as one of the leading enablers of Short-Term Trade Finance space by facilitating nearly $ 2 billion in financing per annum and we are targeting over $ 3 billion in the next fiscal year. That will make us one of the largest supply chain financing players outside of the top 3-4 banks in this space.

What are Vayana’s future plans for enabling business growth in India?

Our long-term vision is to finance the Gross Development Product (GDP) of the country by facilitating finance for MSMEs as well as for mid and large corporates with ease, transparency, speed and convenience.

We are now looking at ways to finance and support the growth of the smallest of MSMEs through specific solutions for the Tier II and III B2B players like small dealers, retailers, micro suppliers, etc.

Implementation of Goods and Services Tax (GST) can bring about a lot of transformation in the financing sector and we believe that every single entity or enterprise, who is engaged infair trade in a transparent manner, should have the right access to finance at lower rates. That positive change is happening soon.

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