Veefin Solutions Ltd, a Mumbai-listed supply chain fintech platform, has agreed to acquire a UAE-based company to mark its second international takeoveer and the fifth acquisition overall within eight months.
Mumbai-headquartered Veefin said in a statement that, through its subsidiary Estorifi Solutions, it will acquire a 74% stake and management control of TradeAssets for $4.4 million.
TradeAssets is platform that facilitates the trading of trade finance assets like letters of credit, guarantees, open account payables, and receivables including Islamic products.
Co-founded by senior ex-bankers Lakshmanan Sankaran and Sumit K Roy, TradeAssets aims to create efficiency and transparency between financial institutions, development banks, and commodity traders in the buying and selling of trade finance assets. It has handled over $4 billion in deals over the last three years, connecting more than 120 banks across over 35 countries, Veefin said.
The latest deal is Veefin’s second international acquisition. It earlier acquired a 50% stake in Singapore-based generative AI-based startup Walnut in November.
With the acquisition of TradeAssets, Veefin is now a ten-company group. The acquisition is in line with Veefin’s strategy to emerge as a one-stop shop for the financial needs of banks and financial institutions, enhancing their ability to manage liquidity, distribute risk, and access global markets.
The acquisition will create synergies in its offerings and operations. Veefin Group’s current suite includes solutions for supply chain finance, trade finance, and cash management, and adding TradeAssets will allow banks to originate, distribute, and manage trade finance assets seamlessly under one unified ecosystem, the company said. It will also allow enhanced collaboration with banks and give rise to cross-selling opportunities, Veefin said.
“This move aligns with our goal to provide an integrated platform that covers all aspects of trade finance, from origination to distribution and beyond. We will continue to acquire companies to add to the Veefin Group’s ecosystem to better serve our banking and corporate clients,” said Raja Debnath, Chairperson, Co-Founder & CEO, Veefin Group.
Last year, Veefin acquired digital lending platform EpikIndifi in a cash and stock deal worth $14.9 million in September. In August, it bought the Indian arm of Singapore tech firm Nityo Infotech. In June, it bought a stake in Mumbai-based Regime Tax Solutions.
Veefin, incorporated in 2020, offers technology product solutions for supply chain finance and digital lending to banks, non-banking financial institutions, fintechs, marketplaces, and corporate houses. These solutions include end-to-end lending stack, smart credit decisioning, business intelligence, and analytics.