GTR Ventures, a London-based investment and venture-building platform specialized in trade and supply chain, has announced its debut deals with five trade fintech companies.
These deals are the first in a strong pipeline of transactions. GTR Ventures has taken equity positions in the five companies, namely Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend. The companies are collectively valued at around US$50 million, the firm said in an announcement.
The companies – four digital trade lenders and a platform for institutional investors to access global trade instruments – have facilitated over US$160 million of trade loan deals since their inception.
Trade finance, which supports annual global trade of US$16 trillion, is an emerging niche investment area. However, some 30% of global trade, or US$5 trillion, is under-financed.
This trade finance gap presents a growing opportunity for debt and equity investors. While returns from trade have traditionally come from providers of debt capital, the emergence of tradetechs presents a new opportunity for private equity and other investors looking to diversify.
Launched in September 2017, GTR Ventures will work with the companies and build their businesses including through global expansion, development of new products such as trade finance indices, and connection to a global marketplace for digital trade finance assets.
"We are excited to partner with GTR Ventures as Tradeteq continues to grow," said Christoph Gugelmann, CEO of UK-headquartered Tradeteq. "This partnership will help us expand our reach to all players within the trade ecosystem and consolidate our European bases while expanding to markets in Asia, including Singapore, Hong Kong, Shanghai and Tokyo."
"The rapidly changing landscape of trade presents exciting opportunities for investors. As our debut deals show, GTR Ventures is uniquely positioned to identify exceptional investments and, through partnerships and alliances, build a global network that will shape the future of both trade and trade finance," said Rupert Sayer, CEO of GTR Ventures.
GTR Ventures is working on a strong pipeline of additional investments and expects to close five more deals and global partnerships in the next quarter.
"The global trade sector is transforming with digitization and data-driven infrastructure connecting diverse players across the physical and financial aspects of trade. The founders behind Tradeteq, Trade Finance Market, Culum Capital, eFundSME and Incomlend, are driving that change by using technology and data analytics to mitigate risks, make lending more efficient and close the trade finance gap," said Kelvin Tan, CIO of GTR Ventures.
Based out of London, Singapore, and Hong Kong, GTR Ventures is an investment platform dedicated to trade and supply chain. In exclusive partnership with Global Trade Review (GTR), GTR Ventures mobilizes private capital for trade and trade finance, investing in and supporting the development of trade-focused fintech companies (tradetechs) while working with multiple stakeholders to integrate technology into trade.
GTR Ventures focuses on four main investment areas: transaction banking (trade finance, treasury, & cash), trade insurance & risk management, SME finance & supply chain and physical trade.
Culum Capital is a Singapore-headquartered fintech which provides companies with working capital funding using trade finance solutions particularly in receivables purchase and supply chain finance. It is also an investment platform for investors seeking alternative investment opportunities. The company has a proprietary risk assessment and management system to ensure the quality of deals flowing through its platform.
eFundSME Global Pte Ltd is an e-marketplace for invoice trading, founded, owned and managed by industry veterans from Singapore. Its key management team comprises professionals from the banking industry with aggregate experience exceeding 100 years. The company leverages the power of online technology to transform trade finance for the mutual benefit of SME sellers and investor buyers.
Operating in Hong Kong and Singapore, Incomlend is a global invoice exchange where companies from different countries can fund their export receivables by selling them to private investors at a discount. The platform trades in multiple currencies (USD, EUR, SGD, and HKD) and offers an integrated digital receivables discounting solution to both suppliers and buyers across its global supply chain, dynamic discounting and factoring products. Investors’ capital is protected against debtors’ credit risk by world leading credit insurers.
UK-headquartered Tradeteq provides the collaborative network for trade finance investors and originators, to connect, interact, and transact. Tradeteq delivers AI-powered credit analytics, reporting, investment and operational solutions. Tradeteq transforms trade finance assets into transparent and scalable investments.
Singapore-based Trade Finance Market (TFM) is a fintech leader in providing alternative trade finance solutions for small and medium enterprises. TFM also develops blockchain-based tools to derisk and lower the cost of trade finance transactions – including InvoiceCheck, a tool designed to reduce invoice finance fraud.