Bank of Maharashtra (BoM) partners with Vayana Network to offer Channel Financing service for MSMEs

Pune: Bank of Maharashtra has entered into a strategic partnership with Vayana Network, India’s largest Supply Chain Financing (SCF) platform to offer financial support to MSME sector. Through this association, Bank of Maharashtra will provide short term credit to meet funding requirements of dealers/ vendors of reputed corporates through “Mahabank Channel Financing Scheme” launched by the bank, through Vayana Network’s expertise in this segment.

Under the partnership, Vayana Network will provide its unique SCF solutions to Bank of Maharashtra supported by Vayana’s technology and service expertise. The SCF solutions will include vendor and dealer financing programs across bank’s network of 1,870+ branches across the country. Vayana Network’s proprietary tech platform will help to digitize the transactions of Supply Chain Financing, while the market services will help to increase penetration in the under-served MSME segment.

Speaking on the development, Mr. A. S. Rajeev, MD & CEO of Bank of Maharashtra said, “Bank of Maharashtra is proud to announce the launch of its Channel Financing solution for MSMEs in partnership with Vayana Network, India’s leading Supply Chain Finance platform. We believe in the power of partnerships, and hence have tied up with leading Fintechs to launch innovative digital offerings. Through this partnership with Vayana, we look forward to offer a fully digital financing experience to our MSME customers, suppliers and distributors of leading corporates.”

 

Mr. Hemant Tamta, Executive Director of Bank of Maharashtra, said, “MSMEs are the backbone of our economy and Bank of Maharashtra is fully committed to support their recovery and growth in a post pandemic world. Easy and affordable access to working capital is critical to make supply chains resilient and to boost the mission of Atmanirbhar Bharat. The tie-up with Vayana has enabled rapid go-to-market for the Bank and we look forward to adding a robust portfolio within our MSME business through Channel Financing Scheme.”

 

Speaking about the partnership, Mr. Ram Iyer, Founder and CEO, Vayana Network said, “Supply Chain Finance or Trade Finance has become a critical vehicle for affordable MSME loans. It has especially gained more traction in the post COVID era as both Corporates and their MSME Supply Chains aim to streamline their working capital cycles and liquidity. At this juncture, MSMEs are looking to rebound in 2021 and the ease to access finance is the need of the hour. Our partnership with Bank of Maharashtra, one of India’s most reputed banks will help them to rapidly scale up the SCF portfolio supported by our tech platform at virtually zero risk”.

Vayana Network is one of India’s largest Supply Chain Finance platform having enabled over USD 6 Billion (Rs. 45,000 crores) in trade finance for 300 supply chains in 25 different industries. The company connects Corporates and their trade ecosystems to provide digital, convenient and affordable access to credit for their payables and receivables. With its proprietary technology, Vayana has processed over 1.7 million transactions and offers a zero-change experience to customers. The Network today spans across 600 cities and 1150+ pin codes in India and also extends to 20 countries across the globe. The company is increasingly catering to the smallest of MSMEs in the long tail of the supply chains.

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