Vayana, an Indian supply chain finance firm, has received a non-banking finance company (NBFC) licence from the Reserve Bank of India (RBI). With this approval, Vayana plans to raise $20 million to expand its lending services. This move places it among fintech firms like Jupiter and Cred, while others like Uni Card have faced regulatory issues.
Founded in 2017, Vayana helps small businesses with invoice discounting and trade financing. With its NBFC status, the company can now co-lend with bigger financial institutions, strengthening its position in the market and supporting the growth of small businesses through better financial solutions.
What is Vayana?
Vayana is an Indian-based supply chain finance company that provides invoice discounting and trade financing to small businesses. It helps businesses in sectors like FMCG, automotive, and manufacturing access short-term working capital.
Founded in 2017 by Ramaswamy Iyer, Vayana initially acted as an aggregator, connecting businesses with banks and NBFCs. However, after securing a Non-Banking Financial Company (NBFC) licence from the Reserve Bank of India (RBI), it can now directly offer financing solutions and co-lend with bigger financial institutions.
With a valuation of $235 million (as of September 2024) and funding of $89 million, Vayana is growing as a key fintech player in supply chain finance.
Why is This Funding Significant?
This funding comes at a crucial time following its approval for an NBFC licence from the Reserve Bank of India (RBI). With this license, Vayana can now directly provide loans instead of just acting as an aggregator, strengthening its position in the supply chain finance sector.
The $20 million funding, led by SMBC Asia Rising Fund, will help expand its lending operations, making financial solutions more accessible to small businesses. This also gives Vayana a competitive edge, placing it alongside fintech leaders like Jupiter and Cred, while startups like Uni Card and One Card face regulatory challenges.
Investor confidence in Vayana’s business model is evident, and the fresh capital will allow the company to enhance its technology-driven lending solutions, ensuring faster and more flexible financing options for businesses.
How Will the Funds Be Used?
Vayana plans to use the $20 million funding to strengthen its lending operations and expand its presence in the supply chain finance sector. With its newly acquired NBFC licence, the company will now be able to co-lend with larger financial institutions, offering more flexible and faster financing solutions to small businesses.
A significant portion of the funds will be invested in technology-driven solutions, enhancing digital lending platforms to streamline loan disbursement and risk assessment. Additionally, Vayana aims to scale its operations, reaching more businesses in sectors like FMCG, automotive, and manufacturing, ensuring better access to working capital.
Founders’ Perspective
Ramaswamy Iyer, the Founder and CEO of Vayana, envisions a financial ecosystem where small businesses can access credit easily and affordably. He believes that MSMEs are the backbone of the Indian economy and that financing should be simple and seamless for them.
Iyer also emphasizes a flexible and employee-friendly work culture at Vayana. He believes that work should not feel like an obligation, encouraging a more autonomous and productive environment. His leadership reflects a commitment to both financial innovation and a progressive workplace.
Key Takeaways
- NBFC Licence Approval – Vayana has secured an NBFC licence from the RBI, allowing it to directly lend and co-lend with larger financial institutions.
- $20 Million Funding Boost – The company plans to expand lending operations, improve tech-driven financial solutions, and support small businesses in sectors like FMCG and automotive.
- Competitive Positioning – With its new licence, Vayana joins fintech leaders like Jupiter and Cred, while others like Uni Card and One Card face regulatory hurdles.
- Founder’s Vision – Ramaswamy Iyer aims to simplify trade finance, ensuring easy credit access for MSMEs, while also promoting a flexible, employee-centric work culture.
- Growth Potential – With a valuation of $235 million and total funding of $89 million, Vayana is poised to scale operations and strengthen supply chain finance in India.
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Conclusion
Vayana’s NBFC licence and fresh funding mark a significant step in its journey to expand supply chain finance in India. With plans to enhance digital lending, co-lend with larger institutions, and scale its reach, the company is set to empower MSMEs with faster and more flexible financing options.
As regulations tighten in the fintech space, Vayana’s strong market position and investor confidence will help drive sustainable growth. Looking ahead, the company aims to leverage technology, deepen financial inclusion, and strengthen partnerships, reinforcing its role as a key player in India’s evolving digital finance landscape.
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