MODIFI today announced US$24m in Series B, which brings its valuation to more than US$120m. The funds will be used to grow MODIFI’s digital trade finance platform for SMEs into a global trade management hub.
MODIFI’s digital trade finance platform for SMEs spans the three major trading regions of Europe, Asia and North America – a cluster which encompasses approximately 80% of global imports and exports. It provides SMEs with simple digital solutions to finance their trades, protect them from counterparty risk, and easily track and manage their shipments.
The new funding round will power major upgrades to the platform, allowing MODIFI customers to take care of all trade-related activities in one place. This includes finding new trade partners and managing foreign exchange risk, among other things.
In Hong Kong 98% of all firms are SMEs, with exports accounting for 88% of their total revenues. The SME export sector has a lot of potential to grow even further, but securing finance and finding new business partners remain a challenge.
Having relied on traditional channels to find new business opportunities, such as trade shows and in-person meetings, SMEs were left stranded once COVID-19 hit.
“Smaller businesses lack the tools and know-how to trade with the ease and comfort enjoyed by their larger counterparts. The solutions available out there are fragmented and don’t approach the problem holistically,” says CEO and Co-Founder Nelson Holzner.
“We have successfully digitized the trade finance industry and are now developing our platform into a comprehensive trade management hub that will empower SMEs to take control of their global trade activities.”