CXOToday has engaged in an unique interview withMr. Roshan Shah, Co-Founder and CEO – VoloFin
- Temporary of the model and the concept behind the launch of VoloFin
VoloFin is actually an industry-first complete Fintech platform, offering end-to-end options in factoring and provide chain financing segments. It’s the solely {industry} participant offering full options catering to the wants of each banks and debtors. Presently, the market has both stability sheet-driven lenders or match-making platforms. VoloFin, alternatively, is a multi-lender platform the place we now have onboarded numerous lenders, together with banks as properly.
The motivation and imaginative and prescient behind introducing such a differentiated platform had been to help small companies with the required commerce finance. They typically battle with entry to credit score and liquidity, which pose a hindrance to their development. Proper from the start, we had been clear: We needed to construct an end-to-end platform that would offer debtors with fast and easy accessibility to commerce finance and concurrently permit banks to take part and scale their enterprise.
2. USP and companies of the corporate
We take pleasure in being the {industry}’s first complete bill and provide chain financing platform. We offer end-to-end options from origination and assortment to credit score insurance coverage to platform lenders. As well as, we offer a big selection of companies to our purchasers (suppliers) and lenders, whether or not it’s defending them towards purchaser non-payment danger, offering them with collateral-free financing, best-in-class proprietary tech platform with full-stack provide chain options to lenders and banks, or guaranteeing provider KYC and compliance by way of in depth integration, potential to underwrite patrons globally, offering framework-based lending fashions with banks, and so on.
We are attempting to unravel one of many largest troubles small companies face: lack of entry to credit score. We attempt to offer our purchasers with fast and easy accessibility to funds and non-recourse and collateral-free financing. We take the client default danger upon ourselves and supply funding to suppliers over and above their present banking limits. They’re thereby relieved from payment-related troubles and may concentrate on vital features like streamlining day-to-day operations, buying uncooked supplies, taking extra orders, scaling their enterprise, growing their manufacturing capability, and so on.
3. How does VoloFin differentiate itself from different fintech platforms catering to SMEs?
There are a number of elements that place us uniquely out there and distinguish us from conventional banks:
- Know-how Platform – Our sturdy platform seamlessly manages all important features from origination, KYC, and onboarding (provider and purchaser) to credit score, operations, debt administration, insurance coverage wrap, and extra.
- VoloFin is a one-stop platform offering factoring options to each banks and lenders
- Lending Partnerships – From APAC to the US, we now have a number of lenders on our platform who permit us to leverage their strengths, together with however not restricted to essentially the most aggressive pricing, greater danger capacities, wider geographical protection, and skill to do high-value/quantity transactions seamlessly.
- Robust Credit score Mechanism– Our founding workforce and core workforce come from danger administration backgrounds. They’ve put their a long time of expertise into constructing a robust and sturdy credit score mechanism within the platform, which makes the lenders snug to affiliate with us and instils their belief in us.
- Commerce Credit score Insurance coverage Coverage- VoloFin’s distinctive Commerce Credit score Insurance coverage coverage gives 100% insurance coverage protection in untoward conditions like delayed funds, purchaser default, and so on. The workforce has in depth experience and expertise in dealing with Commerce Credit score Insurance coverage insurance policies and has designed the coverage to satisfy the particular necessities of consumers.
- Wider Geographic Presence- Our affiliation with lending companions throughout the globe permits us to achieve untapped geographies akin to LATAM Nations, which might be presently not being serviced by the prevailing lenders.
4. What particular challenges do SMEs face in accessing monetary companies, and the way does VoloFin tackle these challenges?
By our superior, tailor-made monetary options, we purpose to handle the distinctive challenges confronted by small companies and supply them with alternatives for sustainable growth. VoloFin performs a pivotal function in accelerating the expansion trajectory of SMEs and driving their enlargement inside tier-2 cities. It gives accessible and versatile financing choices and permits small companies to concentrate on important features, akin to tech adoption, infrastructure growth, expertise acquisition, and so on. Our platform’s user-friendly interface streamlines monetary processes, thereby guaranteeing effectivity in fund administration and facilitating faster decision-making.
VoloFin’s efforts lengthen past conventional banking amenities and provide customized help tailor-made to satisfy the particular calls for of SMEs working in tier-2 cities. This method permits us to reinforce monetary inclusivity for small companies and creates a conducive surroundings open to innovation and flexibility, fueling SMEs’ development and scalability.
SMEs that we now have onboarded on our platform have considerably grown their companies over time, and we now have performed a significant function on this growth. With our fast financing options, which aren’t stability sheet pushed nor require collateral, our assumption of purchaser danger default and conversion of their lengthy receivables into on the spot money/liquidity empowers small companies to scale their enterprise, enhance their manufacturing capability, and so on. Total, we’re a optimistic pressure for SMEs, catalyzing their development in tier-2 cities.
5. How are you fixing the challenges of supply-chain financing?
With its dynamic platform and revolutionary options, VoloFin goals to handle supply-chain financing-related challenges. We enhance transparency and effectivity throughout the provide chains by way of cutting-edge applied sciences. The platform leverages superior analytics to evaluate the creditworthiness of the obligors, fastening financing choices whereas decreasing danger.
Our user-friendly interface is certainly one of our differentiating components. It not solely facilitates seamless communication and collaboration amongst our stakeholders but in addition streamlines doc sharing and approval processes, accelerating the general financing lifecycle. With a concentrate on bringing about optimistic transformation, VoloFin is aiming to beat roadblocks for small companies and can be contributing to the constructing of a extra sturdy, resilient and adaptable supply-chain financing ecosystem. With its revolutionary method and extremely superior tech platform, Volofin is taking the lead in fostering monetary inclusion and sustainability throughout the provide chain.
6. In what methods does VoloFin leverage know-how to streamline monetary processes for SMEs?
Know-how types the core basis of VoloFin. Our sturdy platform seamlessly manages all important features from origination, KYC, onboarding (provider and purchaser), and credit score to operations, compliance, purchaser approvals, disbursement, assortment, debt administration, and insurance coverage wrap on the again of know-how. Our platform ensures a safe and immutable ledger, decreasing the probability of fraud in monetary transactions. VoloFin additional leverages superior analytics to evaluate the creditworthiness of the obligors, accelerating financing choices whereas mitigating danger.
Our in-house proprietary tech platform is the spine of our platform, enabling us to put on the twin hats of a lender and a platform. It paves the best way for banks to companion with us and permits us to supply factoring as a prepared resolution.
7. How do you foresee the {industry} within the subsequent 5 years?
The Fintech {industry} has advanced exponentially over time and has been pivotal in bringing banking’s potential to the non-banking and under-banked inhabitants section. The emergence of cellular wallets, digital fee gateways, and platform-based transactions has unlocked alternatives for established and rising Fintech corporations. Cell wallets and UPIs have taken the limelight within the monetary panorama at the moment. All these modifications have inspired Fintech corporations to offer monetary options and straightforward credit score line companies to SMEs, MSMEs, and particular person shoppers.
We anticipate the {industry} rising by leaps and bounds within the occasions to return. A number of traits will form and rework the {industry} panorama and reimagine the processes by way of which companies and people conduct monetary transactions sooner or later. In truth, we count on to witness the seamless integration of digital identification and digital wallets quickly. This will likely be pivotal in bettering safety and streamlining consumer experiences. We may also see banks leveraging the facility of Generative AI to reinforce banking experiences for his or her prospects.
Platforms working with the identical ideology as ours are identified and extensively used throughout the globe. Actually, in India, the idea with which VoloFin works is new, however the vibrant aspect is that we’re witnessing growing consciousness and willingness from our purchasers. In truth, with a rise in exports from India and restricted banking attain/urge for food, we foresee a robust development potential within the Indian market. The key distinction between India and overseas is the penetration degree of the product, and that is truthfully a bonus for us, our purchasers and our lenders.
8. Development and future plans of the corporate
This 12 months is vital for us as a number of milestones and bulletins are underway. To start out with, we’re working to reinforce our consumer portfolio by onboarding a number of the world’s famend banks. We have now been bootstrapped till now, however this 12 months, we plan to boost our first fairness spherical and safe funding. We are going to share the official announcement as soon as we seal the deal. Our long-term goal is to develop our footprint pan-India and enhance our choices to service our purchasers higher. Therefore, all our strategic choices and alliances will likely be directed towards these targets in 2024.
