Press Release
 UpCap, an Alternate Investing Platform, Launches Trade and Supply Chain Invoice Discounting Product

UpCap, an Alternate Investing Platform, Launches Trade and Supply Chain Invoice Discounting Product

UpCap, the fintech platform for structured invoice discounting products, has announced the launch of its first product ‘Trade and Supply Chain Invoice Discounting.’ UpCap is amongst the first few firms to offer the benefits of high-return, volatility free invoice discounting products for retail investors.
 
The UpCap platform primarily focuses on funded start-ups and healthcare companies for sourcing of invoices. Amongst funded startups, UpCap’s focus has been on the Agri-tech sector. In line with this focus, it has recently announced partnerships with two Agritech startups - Gourmet Garden and Poshn, and is in the process of signing up with another large Agritech startup, marking UpCap’s ongoing commitment to this sector.
 
The founders believe that even though Agritech companies are expected to touch a market value of $1600 billion by 2026, there is a huge gap in the availability of timely credit. Perceived risks, such as high upfront costs, market fluctuations, unpredictable weather conditions are some of the most common reasons why traditional financial firms are hesitant in extending credit to the sector. UpCap aims to reduce the credit availability gap by enabling quick and real-time invoice discounting through its platform. To avail the invoice discounting product, an MSME, after the due-diligence and registration process can seamlessly upload their invoices for funding. The invoices will get listed under the ‘Trade and Supply Chain’ section, accessible to retail investors to invest in.
 
Speaking about opportunities for the Agritech sector, Ajit Aranha, Co-Founder and CEO says, “Availability of timely credit can be a game changer for MSMEs. It determines their ability to act quickly and make use of market opportunities and grow to their highest potential. Invoice discounting platforms, such as UpCap’s offer agritech companies an effective means of managing their cash flow, access working capital, and fuel their growth.”
 
The firm introduced its first product, Trade and Supply Chain Invoice discounting, in February 2023. In less than six months, the platform has over 500 investors and has facilitated over INR 6 crores of invoice discounting and INR 3 crores of repayment by far.
 
UpCap’s first Agritech customer was Gourmet Garden, a platform supplying organic fruits and vegetables to thousands of customers across Bangalore, Chennai, Hyderabad and Mumbai. Talking about partnering with UpCap for Invoice Discounting Financing, Talking about partnering with UpCap for Invoice Discounting Financing, Pramod Prasad, Chief Operating Officer of Gourmet Garden said, “Partnering with UpCap for invoice discounting facility has helped us balance the working capital requirements and resulted in better financial planning. Once the vendor onboarding is done, the payment process is smooth and hassle-free. And our vendors are equally thrilled as the payments to them have been streamlined.
 
Poshn, an agri-trading platform for wholesale processed commodity distribution and financing is another Company to have signed up with UpCap. The company, which was launched officially in June 2021, has raised around $4.5 million in seed round from Prime Ventures and Zephyr Peacock. Talking about partnering with UpCap for Invoice Discounting Financing, Sakshi Goyal, Director of Poshn, said, “We are pleased to find a partner in UpCap for our financing needs. Products like invoice discounting help us to be less reliant on traditional debts. We have access to finance without diluting our ownership.”

UpCap is also signing up with another Agri Tech platform which connects the fragmented Agri Suppliers and Processing Units with large Enterprise buyers. The will be the third agri-business venture onboarded by UpCap.

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