Twinco raises $12m for next-gen supply chain finance platform

The supply chain fintech is on a mission to reduce the estimated $1.7tn trade finance gap.

Global supply chain finance solution TwinCo Capital has just raised $12m in equity and debt.

On a mission to reduce the world’s estimated $1.7tn trade finance gap, the Amsterdam and Madrid-based fintech was founded in 2019 by CEO Sandra Nolasco and COO Carmen Marín.

The round was led by Quona Capital with participation from Working Capital Innovation Fund alongside existing investors Mundi Ventures and Finch Capital.

The company plans to use the funds to accelerate its expansion within its major sourcing countries as well as to strengthen its technology and data capabilities, with a focus on ESG.

“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,” Nolasco said.

“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.”

Twinco provides affordable loans to factories, particularly small and medium-sized companies in emerging countries which are disproportionately affected by the trade finance gap, and acts as a stopgap for suppliers.

It advances up to 60 per cent of a purchase order value upfront in a process that is designed to be “fully transparent” and “no hassle”.

“Twinco’s ambitious mission can only be achieved by bringing together all the relevant parties: Buyers, Suppliers and Investors,” Marín said.

“In this way, Twinco is a catalyst for change.”

The company plans to extend its geographic scope and data capabilities with the new funding.

It currently has more than 100 suppliers across 12 countries, including Bangladesh, China, Pakistan, South Korea, Turkey, Thailand, Vietnam, Indonesia and Spain.

“We are also very excited to launch the very first sustainable-native supply chain finance program — the Twinco ESG Tilt, where business intelligence is directly linked to beneficial purchasing and funding conditions,” Marín added.