Berlin-based fintech MODIFI has secured $60 million in from Silicon Valley Bank, now bringing their total capital to $111 million.
The funding is expected to address increased demands in existing marketing, as well as continue growth and market penetration, primarily in the US.
In a nutshell, MODIFI fronts the money for SMEs, buyers or sellers, to pay or receive payments for their invoice, with payments due 30, 60 or 90 days later, or outstanding invoices as soon as vendors ship the goods, respectively.
Traditionally, most small and medium-sized businesses see a 50% rejection rate when seeking trade finance. This equates to an annual funding gap of $1.5 trillion. Now toss a global pandemic, i.e. a dramatically reduced risk appetite, and it’s SME’s that end up suffering, and ultimately local businesses.
“The pandemic has forced many analogue processes to move online, and we are seeing more and more SMEs appreciating the value of a platform that provides them with trade finance from their own homes, whenever they need it,” comments CEO and Co-Founder Nelson Holzner.
Tripling their business over the course of 2020, MODIFI blazed trails into four new markets; China, Hong Kong, UAE and Spain, and most recently launched in the Netherlands. With their planned entrance to the US market., this would position MODIFI as the only digital trade finance platform that focuses on SMEs that would then operate in Europe, Asia, and North America; a second that encompasses approximately 80% of global imports and exports.
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