Digital trade platform for SMBs, MODIFI secures $24M funding, reaches $120M valuation
The COVID-19 pandemic left the SMBs stranded. This is where the global fintech MODIFI based in Berlin comes to the rescue as it operates with the mission to empower SMBs to trade and grow their business and benefit local economies. Now, the fintech that helps small and medium-sized businesses (SMBs) finance and manage their international trades, has secured $24 million (nearly £17.4 million), which takes its valuation to $120 million.
Eyes to help UK SMBs
The investment round was led by new investor Heliad Equity Partners along with participation from Neva SGR, the venture capital investment vehicle of Italy’s leading banking group Intesa San Paolo. Also, existing investors, including Global Founders Capital, Maersk Growth, and Picus Capital participated in the round.
MODIFI will use the fund to grow its digital trade finance platform for SMBs into a global trade management hub. The new funding round will power major upgrades to the platform, allowing 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.
The platform lets international SMB’s including those in UK, buyers and sellers, fund transactions that typically experience payment delays due to supply chain and shipping timeframes.
“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. We have successfully digitized the trade finance industry and are now developing our platform into a comprehensive trade management hub that will empower SMBs to take control of their global trade activities. With Heliad Equity Partners and Neva we are delighted to have two new strong partners complementing our existing shareholder base,“ said MODIFI CEO and Co-Founder Nelson Holzner.
“MODIFI has not just grown in business and outreach in the last few years but also in its approach to addressing systemic issues related to global trade. We are very happy to support the stellar team around Nelson Holzner, Sven Brauer, and Jan Wehrs at MODIFI in their journey to become the leading trade finance and management platform for SMBs. Small businesses form the backbone of local economies, and it’s critical that we help them grow and flourish,” said Faulk Schaefers, CEO of Heliad Equity Partners.
“The ability to raise funds and attract investors and industry partners worldwide in a very short time confirms MODIFI’s enormous potential to become a billion euro company. It’s clear that global trade is in need of digital solutions. MODIFI has already done a lot to simplify and automate paper-heavy trade finance processes, and we are looking forward to seeing the fintech company tackle a broader set of challenges related to global trade,” said Mario Costantini, CEO of Neva SGR.
Digital trade finance platform for SMBs
Founded by Nelson Holzner, Sven Brauer, and Jan Wehrs, MODIFI is the only digital trade finance platform for SMBs that spans the three major trading regions of Europe, Asia, and North America, which encompasses nearly 80 per cent of global imports and exports. It provides SMBs with simple digital solutions to finance their trades, protect them from counterparty risk, and easily track and manage their shipments.
With this platform, MODIFI can solve global trade finance for SMBs. Using simple digital solutions, the fintech removes the paperwork, hassle, and red tape that hampers those involved in international trade, giving them the working capital and risk protection they need to thrive.
Previously, MODIFI raised a $60 million debt facility from Silicon Valley Bank and successfully launched in the US, Netherlands, and Bangladesh in the first half of 2021. Currently, the company operates out of nine offices in New York, Berlin, Amsterdam, Delhi, Mumbai, Dhaka, Shenzhen, Hong Kong, and Dubai.