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Velotrade, a Hong Kong-headquartered growing leader in trade finance, has secured funding and partnership with Vynn Capital, a Southeast Asia-focused venture capital firm with notable investments such as Carsome from Malaysia and Travelio from Indonesia. Velotrade operates a digital platform that matches corporates in need of working capital with institutional investors willing to advance funds. With the new financing and partnership with Vynn Capital, Velotrade plans to scale its technological infrastructure and expand into new geographies in Southeast Asia.
Velotrade, launched in 2017, has since granted short-term financing of outstanding invoices to thousands of corporates, including Fortune 500 companies and SMEs – demonstrating the urgent need for supplier financing. Furthermore, driven by the objective to provide long-term sustainable results, the company follows prudent risk management and complies with additional risk management rules as the only trade finance platform licensed by the Securities and Futures Commission of Hong Kong, which positions Velotrade as a trusted source of new asset class of trade receivable for institutional investors. With the growing ecosystem of clients, Velotrade is continuously adding products to its offering and is very active in e-commerce financing, purchase order financing, export loans, etc.
Velotrade is also recognized by major global banks like MUFG Bank, with the recent appointment of the fintech company as MUFG Bank’s internal invoice processing manager. Besides, Velotrade has been awarded the prestigious accolade of Best SME Invoice Solution award at TechChallenge, a joint initiative of Bank for International Settlements Innovation Hub (BISIH) and The Hong Kong Monetary Authority (HKMA).
Through the partnership with Vynn Capital, Velotrade will further scale its operations and expand into Malaysia and other markets of Southeast Asia. In addition to financing, Vynn Capital will actively contribute company-building expertise and provide access to an extensive network of resources in Southeast Asia to Velotrade. On the partnership with Vynn Capital, Vittorio De Angelis, Executive Chairman and co-founder of Velotrade, said, “We are very excited to partner with Vynn Capital. The partnership will help us broaden our geographical reach and further establish our presence in Malaysia and the rest of South-East Asia. When selecting partners, it is of paramount importance to have synergies to exploit, and our two firms have many to share!“
“We believe that the financial sector and capital markets are due for greater enhancement in efficiency. Large financial institutions are looking at how technology and digitization can help grease their wheels and propel themselves forward. Velotrade sits right in the middle of all the action: the pandemic is encouraging demand for their services as there has been a very strong surge in cross-border transactions. We are ready to integrate Velotrade into our portfolio ecosystem, and we have a very optimistic outlook for the company to expand deeper into countries like Malaysia and Indonesia,” Victor Chua, Founding & Managing Partner of Vynn Capital, added. Vynn Capital recently announced that the firm has joined hands with Tunku Ali Redhauddin ibni Tuanku Muhriz, a Senior Advisor to the leading private equity firm TPG Capital, to support portfolio companies like Velotrade.
About Velotrade
Velotrade is a digital trade finance platform used by businesses of all sizes to finance their cash flow. Corporates can access financing via invoice discounting, e-commerce financing, purchase order financing and other trade finance assets. The funds are injected by investors with excess liquidity who are seeking alternative ways to achieve attractive returns in a favourable risk-return framework.
Using the latest-available technologies to conduct comprehensive credit analysis and incorporating modern compliance procedures, Velotrade’s platform is an efficient and rapid means for companies to obtain financing to meet their cash flow imbalances. Corporates in need of financing and investors keen to access the trade finance asset class can apply for inclusion on the Velotrade platform.
About Vynn Capital
Vynn Capital is an early stage venture capital firm founded with the objective of bridging the gap between traditional industries and the new economies through the development of technology. Key industries of focus include Travel, Property, Food and FMCG, Female Economics as well as Business Enablers (including logistics and fintech).
The team is made up of professionals with experience across early stage investment to late stage financing, with experience in business operations. The investment philosophy revolves around the creation of synergistic value between partners and companies supported by Vynn. Beyond investing, Vynn Capital assists its investors or Limited Partners in understanding new industries and markets with its localized team and network across the major cities of Southeast Asia. Vynn Capital is currently active in Malaysia, Singapore, Indonesia, Vietnam, Thailand, and Myanmar.
Source: Vynn Capital
