In an interaction with Shweta Papriwal, Editor, IIFL, Vinod Parmar, Global Head – Sales & Marketing, Vayana Network, said, “Vayana Network gets both the Seller and Buyer to authenticate every trade in a non-repudiable way, significantly reducing the risk at a transaction level for our lending partners.”
What are the services that you provide under the Network Financing Domain?
Vayana Network offers easy, quick and digital access to finance to all participants in a Supply Chain. Even the smallest of Buyer or Supplier, including the long-tail, can participate in our financing programs. We work closely with our partner Financial Institutions (FIs) and counterparties to design tailor-made, low-cost financing programs for MSMEs at interest rates as low as 8%-14% as against the traditional market rates of 18%-24%. Buyers and Sellers are onboarded in less than an hour irrespective of what systems they use for invoicing or acceptance. They need no investments or changes to their systems or accounting processes. Over the years we have developed and launched multiple programs to address the financing needs of different supply chains. We offer various types of Short-Term Trade Financing via Factoring, Buyer Financing, Payable Financing or Reverse Factoring with or without commercial cards.
What are the challenges that you face in your business segments?
India’s B2B players are very diverse in terms of their business practices, tech adoption and operational trade flows. For instance, a large number of SMEs continue to operate with paper-based invoices and manual reconciliation. Banks continue to rely on traditional underwriting processes making it difficult for SMEs to access cheap and convenient finance. However, the landscape is rapidly changing with the advent of GST and adoption of technology is gaining ground with the SMEs. Likewise, Banks are open to working with non-traditional data and collaborate with Vayana Network to provide one-click finance against confirmed trades to Buyers/ Sellers.
Do you have any direct/ indirect peers? How are you placed against them?
Vayana Network is India’s largest 3rd party platform for Short-Term Trade Finance. We have no direct competitors. Working with supply chains across industries, each with unique processes and tech habits, is a challenging task. There are multiple players trying to solve parts of the problem, but none with an end-to-end holistic trade finance service. Vayana offers a completely automated and simple to use financing service which adapts to both the Corporate and SME users’ expectations. We collaborate with FIs to offer easy financing to the Supply Chains while also being responsible for originating the trade on our Network; and reporting on invoice-wise payments and reconciliation.
How do you operate with nil or no collateral? How is this strategy faring with you?
Vayana Network gets both the Seller and Buyer to authenticate every trade in a non-repudiable way, significantly reducing the risk at a transaction level for our lending partners. Collateral requirement is nil/minimal as our financing programs are based on the Buyer’s payment obligation at a transaction level. This reduces risk significantly and FIs can thus offer financing to even the smallest of Suppliers & Distributors through Vayana. Limits are set-up clearly against the trade payment obligation where the Supplier’s bank account is directly credited against every trade, with reconciliation provided by Vayana. This strategy has worked very well for us and today we have a number of financing programs running with Nil/ minimal collateral.
What facilities/ assistance do you provide in the GST filing segment?
As a Government authorised GST Suvidha Provider (GSP), Vayana GSP provides a licensed gateway access to the GST Network to Corporates and SMEs for easy, secure, end-to-end GST and E-way bill compliance. Vayana GSP serves over 700 large corporates and some of the largest institutions, in addition to large aggregator Application Service Providers (ASPs) that have over 150,000 SMEs routing their API traffic through us. We are one of the first GSPs to fully integrate with National Informatics Centre’s (NIC) production environment for E-Way Bill APIs enabling easy E-way bill compliance. Vayana also provides ASP services under the brand name SahiGST.
Guide us about your geographical presence. Do you intend to expand?
Our Network is present in 20 countries globally. Headquartered in Pune, we have offices in Delhi, Mumbai, Chennai, Bangalore, USA and Singapore.
What is your strategy to capture new clients?
We have feet on ground handling all the 4 regions in India, and a direct sales presence in USA and Singapore. Our business also grows through the viral effect of our existing customers referring us new customers. We participate in industry events; and contribute thought leadership content in various forums and publications to reach our prospects and customers to further promote our brand.