Fintech firm Modifi secures $60m debt facility from Silicon Valley Bank

Global fintech company Modifi said it has secured a US$60 million debt facility from Silicon Valley Bank, which brings its total capital raised to date to US$111 million.

Photo credit: Modifi

Founded in 2018, Modifi provides online trade financial services to small and medium-sized businesses (SMEs). It currently operates out of seven offices spread across Berlin, Amsterdam, Delhi, Mumbai, Shenzhen, Hong Kong, and Dubai.

The new funds will be used to address the increasing demand for its services in India and other existing markets, as well as fuel the company’s growth in new geographies, particularly the US, Modifi said in a statement. The Indian market is the largest single market for the company, representing around 30% of its financed volume in 2020.

With its expansion into the US, Modifi claims it will become the only SMEs-focused digital trade finance platform that spans Europe, Asia, and North America.

In February, the Berlin-based firm acquired PrimaDollar’s export finance business. Following the deal, Modifi has doubled its customer base in the Indian market, and it expects to grow its business there by 5x this year, said company CEO and co-founder Nelson Holzner. He added that the company is on track to reach the goal of distributing US$1 billion to Indian SMEs by the end of 2023.

Last year, Modifi said it tripled its business as a result of a “strong performance” during the pandemic. The increase in demand for digital cash management solutions allowed the company to expand to four new markets in 2020: mainland China, Hong Kong, the United Arab Emirates, and Spain.