Further to the announcement of the Olea and Vayana partnership last year, we are thrilled to have successfully launched a receivables financing program for a large Indian manufacturer and executed the first landmark export financing transaction under the program.
This transaction marks a key milestone in the Olea – Vayana partnership to provide exporters and importers in India with hassle-free, competitive, and fast access to alternative liquidity.
Letitia Chau, Deputy CEO of Olea said: “Olea is excited about the traction that we have gained in India as a result of our collaboration with Vayana. We can see tangible benefits to our clients and we are motivated to extend this to more SMEs in India.”
The partnership has gained good momentum since it began in May 2022, with other export-oriented entities in the process of applying for financing through this alliance. The synergies of the Olea-Vayana partnership bring together their individually unique offerings and align focus on long-term value. Olea brings its extensive structuring capability, state-of-the-art technology platform and extensive access to funding globally. On the other hand, Vayana is deeply entrenched in the Indian ecosystem and can leverage its close relationships with corporates and MSMEs in India to provide financing solutions.
Ram Iyer, Founder, and CEO, of Vayana, said, “The Govt. Of India has been working on various policy initiatives to make India an export hub. It has been investing heavily in core and digital infrastructure to help businesses become globally competitive. This will require newer pools of capital to be made accessible at competitive rates for businesses to ride the growth wave.”
The Olea-Vayana partnership aims at financing trade deals worth more than USD 500m in the near future.
According to reports, global trade is expected to grow by 70% to USD 29.7 trillion by 2030. Southeast Asia is poised to be one of the biggest beneficiaries of this growth. The current system and process for financing trade with Southeast Asia will need to become more efficient. New approaches will help with this, such as digitalisation of the complete transaction, providing access to sustainable finance, and visibility to the last mile.
We expect to continue seeing volatility in the form of supply chain shocks, commodity prices and geo-political instabilities. Amidst these, there will be green shoots, and sustainable finance solutions through organisations like Olea and Vayana will provide a fighting chance for small businesses to thrive in an ever-changing global landscape.