- Platform/marketplace: origination, analysis, and matching quality mid-market SCF and receivables deals with funders via the platform.
- White label/SaaS solution: licensing an end-to-end system for banks and NBFIs to operate their SCF and receivables business.
Overview: Finverity is a London-based fintech focused on developing and implementing a non-recourse, automated, global SCF solutions for all trade stakeholders (buyers, suppliers, and funders). Its platform enables investment in SCF, targeted at mid-market companies in emerging markets. It aims to serve the entire ecosystem of trade finance participants and is made available via two routes:
- A digital platform that directly matches bank and non-bank funders with pre-qualified mid-market companies seeking supply chain and receivables finance. The platform provides an integrated origination, transaction servicing and risk management reporting infrastructure.
- An end-to-end cloud-based SaaS solution for banks and non-bank funders, enabling full digitalisation of their invoice finance business, inclusive of client portals, onboarding modules, in-house process workflows, automatic disbursals, and reconciliation.
The platform uses APIs to integrate into ERPs or accounting systems to automatically pull the data it needs to service its clients. It operates as a middleman, with pooled accounts in invoice currencies for buyers and sellers (with FX spot conversion or forward hedging and closure if required) and has segregated accounts (in USD/EUR/GBP) for funders. On confirmed delivery of goods and respective invoices by the buyer, Finverity pays the supplier. Finverity collects payment from the buyer at invoice maturity on the funder’s behalf.
The business has secured partnerships with public sector entities such as Abu Dhabi Global Market (ADGM).
At the end of March 2023 Finverity announced it has raised $5m in what it said was a “heavily oversubscribed” equity funding round from new and current investors. New investors include London-based fintech specialist Outward, Amsterdam-based Acrobator Ventures and US-based s16vc founders fund. The funding round comes on the back of 15-fold revenue growth in 2022 across the Middle East and Africa and with its the recent expansion into Eastern Europe.
Active region(s): Africa, Middle East, Eastern Europe
Partners: Ebury, SAP
Ownership: Founder owned: Viacheslav Oganezov and Alex Fenechiu
Elevator pitch: “Finverity helps NBFIs and banks break into the SCF space by offering low-cost, high-speed-to-market solutions for operational technology, legal infrastructure, processes and procedures, as well as origination, across all four pillars of a successful SCF business. We use our own technology to run our proprietary $500m-plus book in the Middle East, and similarly power the SCF operations of banks and NBFIs in five countries in Africa.
Email: [email protected]
TMI view: Emerging market supply chain participants can struggle to secure sufficient working capital funding, limiting opportunities for buyers, suppliers, and funders alike. This platform aims to correct this situation.
Verdict: A single solution enabling midcap emerging market supply chain participants on both sides of the trade, and their existing and potential funding partners, to meet within a growing ecosystem.