Vayana TradeXchange (VTX) targets $7.5 billion in transactions by 2025

Vayana TradeXchange (VTX) has officially commenced its commercial operations, offering a unique and seamless trade financing solution for exporters and importers in India and around the world.

GIFT-city-based Vayana TradeXchange (VTX), part of the Vayana Group, India's largest supply chain finance platform, is targeting trade financing volume exceeding $7.5 billion in the next 24 months. 

Licensed by the International Financial Services Centres Authority (IFSCA), VTX is one of the first International Trade Financing Services (ITFS) platforms to go live commercially. 

Additionally, VTX is a member of FCI (Factoring Chain International), the largest global representative body for over 400 factors across 91 countries. Its mission is to provide easy access to unsecured foreign currency trade credit solutions for MSMEs in India and globally.

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Market Opportunity & Growth

According to Kalyan Basu, MD & CEO, VTX, global trade flows are projected to surpass $30 trillion by 2030, resulting in a trade finance gap expected to grow from $1.7 trillion to $3 trillion. Over the next five years, India aims to export goods and services worth over $1 trillion, with MSMEs contributing $500 billion. VTX sees itself as a key player in the origination and distribution of trade assets, facilitating end-to-end digital financing.

During its sandbox phase, VTX has completed 31 transactions valued at $1.5 million, showcasing its appeal to exporters, importers, and financiers. Basu added, "The opportunity is immense for being a gateway to financiers across the globe, allowing them to create short-term granular trade assets."

A boost for MSME Exports: The country’s vision of achieving USD 5 Trillion GDP and USD 1 Trillion of Exports will be a reality in another 3-4 years. In line with the 50% contribution to exports, MSMEs are expected to add USD 500 Billion, which means a need of around USD 100 Billion in trade finance for MSMEs alone. 

A major portion of the Trade Finance Gap relates to MSMEs, and this is true across the globe. If India has to reach USD 1 Trillion in exports, we need to resolve this constraint at the earliest. Today factoring volume in China is EUR 400 billion-plus and in India at EUR 8.6 billion; hence the scope of growth is immense. Cross border Factoring as a financing tool will soon witness exponential growth in India. VTX and other such platforms will be the harbinger of such growth not only in India but in many Southeast Asian Countries as well. 
Capitalise on ecosystem play.

“With an end-to-end digital ecosystem on the origination and the distribution side of trade assets and an auction-based transparent price discovery mechanism offered by VTX, we believe it will be the go-to marketplace for trade finance in the next five years. VTX going ahead, will also have Trade Credit Insurance as an offering on its platform. The best part is that VTX can play the originator and distributor role in primary and secondary markets for such trade assets, " added Basu.

VTX reduces the friction points of Trade Finance to a great extent through automation and standardisation for processes, thus reducing cost and increasing efficiency and accessibility. VTX promotes and endorses the GOI policy of ease of doing business and supports the Make in India movement by ensuring trade credit to the export segment at the best possible rates. In the near future, the platform will look at bringing together all the relevant participants in trade – Exporter, Importer, Financer, Insurer, Logistic companies, shippers, customs, and regulators, deeply integrating itself with India’s digital public infrastructure.

About Vayana TradeXchange

VayanaTradeXchangeis part of Vayana, India's largest supply chain finance platform, with a presence in the USA, Singapore, and Dubai. Through its extensive network of large public and private sector banks in India, Vayana facilitates in financing over $1 billion per month for more than 300,000 MSMEs across 25 different sectors. The company boasts strong institutional backing from IFC, March Capital, Marshall Wace, BII, PayU, Chiratae Ventures, Jungle Ventures, and others.