Twinco Capital, a supply chain finance solution, has raked in $12m in an equity and debt round led by Quona Capital.
The round also saw participation from Working Capital, Mundi Ventures and Finch Capital. Zubi Capital provided the venture debt portion.
According to Financial IT, Twinco Capital is on a mission to reduce the world’s estimated $1.7trn trade finance gap, which disproportionately affects SMEs in emerging countries and hinders their ability to access business opportunities and grow.
The company works with large corporations and offers funding to their suppliers globally, advancing up to 60% of the purchase order value upfront and paying the remainder upon delivery.
Financial IT said that Twinco continuously collects data that stems from the intersection of commercial, financial and ESG performance of the thousands of manufacturers involved in these supply chains.
As a result of this, Twinco is well positioned to provide its customers not only with funding but also with the benefit of unique business intelligence that can enable SMEs to produce products competitively and responsibly.
The new influx of capital will be used to accelerate the firm’s expansion within the major sourcing countries and strengthen its technology and data capabilities, in particular in relation to ESG.
Twinco CEO Sandra Nolasco said, “If we are to have competitive and socially responsible supply chains on a global scale, suppliers need access to affordable financing from the very beginning of production, starting with the purchase order.
“Extraordinary events, such as those experienced these past years, have revealed the fragility of supply chains, which are historically unable to adapt to the complexity of global production networks. At Twinco, we propose a radical change in how to use finance as a tool to proactively transform global supply chains, to foster the participation of SMEs, improve efficiency and ensure responsible sourcing practices.”
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