VTX taps YES BANK to drive affordable export financing

Vayana TradeXchange (VTX), a 100% subsidiary of Vayana Network, a supply chain finance platform in India,  based in GIFT City, Gujarat, on Friday, inked a partnership agreement with Mumbai-based private lender Yes Bank Ltd. to offer competitively priced credit solutions to both buyers and sellers on the VTX platform.

Together, the two entities aim to deliver seamless access to a diverse range of trade finance products, enabling businesses of all sizes, especially micro small, and medium enterprises (MSMEs) to adeptly handle trade receivables and payables. More importantly, this collaboration offers businesses enhanced control over cash flows, a critical aspect of thriving in today’s dynamic market, the companies said.

VTX uses technology to provide resources and tools to help MSME exporters expand their businesses globally. facilitates cross-border trade finance under the supervision of the International Financial Services Centres Authority (IFSCA) and already onboarded State Bank of India, Yes Bank, India Factoring, VoloFin, and Drip Capital as financiers and is envisaging to onboard another 10 financiers soon.

Ajay Rajan, Country Head -  Government, Multinational & International Business, Transaction Banking & Knowledge Units, YES BANK, said that the joint effort is a strategic step towards supporting India’s vision of becoming a $5 trillion economy, nurturing sustainable growth and prosperity for all.

This strategic partnership will help serve as an efficient platform for Indian Exporters to navigate the complexities of cross-border trade and avail efficient financing against their global receivables, thereby empowering Indian businesses to contribute towards India’s aim to create a $10 trillion economy, within which achieving exports of $2 trillion. 

This partnership reaffirms Yes Bank's commitment to fostering financial innovation, being the first Bank to transact on the VTX platform and we believe such partnerships and solutions could provide the much-needed boost to India’s MSME exports contribution, according to the bank. 
Kalyan Basu, MD and CEO of VTX said that SME/MSMEs need easy access to affordable finance to thrive, which the company can achieve through this partnership. 

“We strongly believe this partnership will be a game-changer for international trade finance, aligning with the government's vision to make GIFT City a global trade finance hub. As India strives to become the world's third-largest economy and a developed nation, empowering MSMEs is critical. By capturing the domestic market and scaling up production, these businesses can unlock the power of economies of scale, propelling India's economic growth,” he said.

This partnership comes at a crucial juncture as India charts its course towards Viksit Bharat 2047, aiming for a trillion-dollar economy with trillion-dollar exports. With the manufacturing of semiconductors, EVs, solar panels, defense equipment, and other sectors gaining traction and the realignment of global supply chains to India, the need for affordable export financing becomes even more critical. 

Basu also emphasized that fresh pools of capital are required to fuel the growth of the Indian economy.  VTX's unique strategy of curated origination and digital asset distribution would make it the preferred partner for buyers, sellers, financiers, insurers, and logistical partners shortly.

On January 27, Yes Bank announced in a statement to stock exchanges that its fiscal third-quarter profit had surged more than fourfold but fell short of analysts' estimates. Net profit rose to Rs 231.6 crore for the quarter ended December 31 from Rs 51.5 crore a year ago. The lender's gross non-performing assets (NPA) remained steady at 2 percent in the three months ended December 31, while net NPA improved to 0.9 percent.