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VoloFin: Revolutionizing Fintech with Comprehensive Factoring and Supply Chain Solutions
Exclusive Interview with Roshan Shah, Co-Founder and CEO of VoloFin
1. Can you tell us about VoloFin and the idea behind its launch?
VoloFin is a groundbreaking fintech platform that provides comprehensive end-to-end solutions in factoring and supply chain financing. Unlike other industry players, which are either balance sheet-driven lenders or match-making platforms, VoloFin is a multi-lender platform that includes banks among its participants. Our goal was to create a platform that supports small businesses with the trade finance they need, addressing the credit and liquidity challenges that often hinder their growth. From the outset, our vision was clear: to offer an all-encompassing platform that grants borrowers quick and easy access to trade finance while enabling banks to participate and expand their operations.
2. What are the unique services and USPs of VoloFin?
We pride ourselves on being the industry’s first complete invoice and supply chain financing platform. VoloFin offers end-to-end solutions encompassing origination, collection, and credit insurance for platform lenders. Our wide array of services for clients (suppliers) and lenders includes protection against buyer non-payment risk, collateral-free financing, and a state-of-the-art tech platform with full-stack supply chain solutions. We also ensure supplier KYC and compliance through extensive integration, global buyer underwriting, and framework-based lending models with banks. By providing these comprehensive solutions, we help small businesses overcome the significant barrier of credit access, allowing them to focus on scaling their operations and increasing production capacity.
3. How does VoloFin differentiate itself from other fintech platforms catering to SMEs?
Several factors set VoloFin apart in the market:
- Technology Platform: Our robust platform manages all critical functions, from origination and KYC to credit, operations, debt management, and insurance wrap.
- Comprehensive Solutions: VoloFin offers factoring solutions to both banks and lenders, creating a one-stop platform.
- Lending Partnerships: Our platform includes multiple lenders across APAC and the US, allowing us to offer competitive pricing, higher risk capacities, wider geographic coverage, and seamless high-value/volume transactions.
- Strong Credit Mechanism: Our experienced team has built a robust credit mechanism, fostering trust and confidence among lenders.
- Trade Credit Insurance: Our unique policy provides 100% coverage in cases of delayed payments or buyer defaults.
- Global Reach: Our partnerships enable us to serve untapped regions, including LATAM countries.
4. What challenges do SMEs face in accessing financial services, and how does VoloFin address them?
SMEs often struggle with access to credit, which hampers their growth. VoloFin offers advanced, tailored financial solutions that accelerate SME growth, especially in tier-2 cities. Our platform provides accessible and flexible financing options, enabling SMEs to focus on critical functions such as tech adoption, infrastructure development, and talent acquisition. By offering quick, non-recourse, and collateral-free financing, we assume buyer risk defaults and convert long receivables into instant liquidity, empowering small businesses to scale and increase production capacity.
5. How does VoloFin address supply-chain financing challenges?
VoloFin improves supply-chain financing transparency and efficiency through advanced technologies and analytics to assess obligors’ creditworthiness. Our user-friendly interface facilitates seamless communication among stakeholders, streamlining document sharing and approval processes. By reducing risk and accelerating financing decisions, VoloFin helps small businesses overcome roadblocks and contributes to building a robust, resilient supply-chain financing ecosystem.
6. How does VoloFin leverage technology to streamline financial processes for SMEs?
Technology is the core foundation of VoloFin. Our platform manages critical functions like origination, KYC, onboarding, credit, operations, compliance, buyer approvals, disbursement, collection, and insurance wrap, all through advanced technology. This secure and immutable ledger reduces the likelihood of fraud and uses advanced analytics to assess creditworthiness, accelerating financing decisions and mitigating risk. Our proprietary tech platform allows us to function as both a lender and a platform, paving the way for banks to partner with us and offering ready factoring solutions.
7. What is your vision for the fintech industry in the next five years?
The fintech industry is rapidly evolving, bringing banking capabilities to the non-banking and under-banked populations. Innovations like mobile wallets, digital payment gateways, and platform-based transactions are unlocking new opportunities. We anticipate the seamless integration of digital identity and wallets, enhancing security and user experiences. Generative AI will further transform banking experiences. VoloFin’s approach is relatively new in India, but growing awareness and increasing exports signal strong growth potential. The difference in product penetration between India and other regions presents a unique advantage for us and our clients.
8. What are VoloFin’s growth and future plans?
This year is crucial for us, with several milestones and announcements in the pipeline. We aim to enhance our client portfolio by onboarding globally renowned banks and plan to raise our first equity round. Our long-term objective is to expand across India and improve our offerings to better serve our clients. All strategic decisions and alliances in 2024 will be directed towards these goals.
Source: cxotoday.com
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