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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