HONG KONG SAR - Media
OutReach - 14 September 2021 - Global fintech MODIFI today
announced US$24m in Series B, which brings its valuation to more than US$120m.
The round was led by new investor Heliad Equity Partners with a co-investment
from Neva SGR, the venture capital investment vehicle of Italy's leading
banking group Intesa San Paolo. Existing investors also participated
significantly, including Global Founders Capital, Maersk Growth and Picus
Capital. The funds will be used to grow MODIFI's digital trade finance platform
for SMEs into a global trade management hub.
MODIFI is the only digital trade finance platform for SMEs that spans
the three major trading regions of Europe, Asia and North America - a cluster
which encompasses approximately 80% of global imports and exports. It provides
SMEs with simple digital solutions to finance their trades, protect them from counterparty
risk, and easily track and manage their shipments. The new funding round will
power major upgrades to the platform, allowing MODIFI customers to take care of
all trade-related activities in one place. This includes finding new trade
partners and managing foreign exchange risk, among other things.
In Hong Kong 98% of all firms are SMEs, with exports accounting for 88%
of their total revenues.
The SME export sector has a lot of potential to grow even further, but securing
finance and finding new business partners remain a challenge. Having relied on
traditional channels to find new business opportunities, such as trade shows
and in-person meetings, SMEs were left stranded once COVID-19 hit. MODIFI's
mission is to empower SMEs to trade and grow their business, thus benefiting
the Hong Kong economy.
"Smaller businesses lack the tools and know-how to trade with the ease
and comfort enjoyed by their larger counterparts. The solutions available out
there are fragmented and don't approach the problem holistically. We have
successfully digitized the trade finance industry and are now developing our
platform into a comprehensive trade management hub that will empower SMEs to
take control of their global trade activities. With Heliad Equity Partners and
Neva we are delighted to have two new strong partners complementing our
existing shareholder base," says CEO and Co-Founder Nelson Holzner.
"MODIFI has not just grown in business and outreach in the last few
years but also in its approach to addressing systemic issues related to global
trade. We are very happy to support the stellar team around Nelson Holzner,
Sven Brauer and Jan Wehrs in their journey to become the leading trade finance
and management platform for SMEs. Small businesses represent 90% of all firms
worldwide, forming the backbone of local economies. It's critical that we help
them grow and flourish" says Falk Schaefers, CEO of Heliad Equity Partners.
"The ability to raise funds and attract investors and industry partners
worldwide in a very short time confirms MODIFI's enormous potential to become a
billion euro company. It's clear that global trade is in need of digital
solutions. MODIFI has already done a lot to simplify and automate paper-heavy
trade finance processes, and we are looking forward to seeing the fintech
company tackle a broader set of challenges related to global trade" says Mario
Costantini, CEO of Neva SGR.
MODIFI successfully launched in the US, Netherlands and Bangladesh in
the first half of 2021, after raising a US$60m debt facility from Silicon
Valley Bank. The company currently operates out of 9 offices in New York,
Berlin, Amsterdam, Delhi, Mumbai, Dhaka, Shenzhen, Hong Kong and Dubai.