SME Featured Southeast Asia

HK’s fintech for SMEs Velotrade’s new funding to see it expand in Malaysia

Kuala Lumpur, Malaysia – Velotrade, the trade finance digital platform based in Hong Kong, has announced that it has secured funding from Vynn Capital, the SEA-focused venture capital firm that works with companies in the industries of travel, property, food and FMCG, and female economics, as well as business enablers.

Through the new financing by Vynn Capital, Velotrade will be scaling its technological infrastructure and expansion in Malaysia and other markets in SEA. Vynn Capital will also actively contribute company-building expertise and provide access to an extensive network of resources in the region. 

Velotrade grants short-term financing of outstanding invoices to thousands of corporates, including both Fortune 500 companies and SMEs, demonstrating the urgent need for supplier financing. It operates a digital platform that matches corporates in need of working capital with institutional investors willing to advance funds.

In addition, Velotrade is driven by the objective to provide long-term sustainable results, as it follows prudent risk management and complies with additional risk management rules as the only trade finance platform licensed by the Securities and Futures Commission of Hong Kong.

Vittorio De Angelis, the executive chairman and co-founder at Velotrade, commented that the partnership will help them broaden their geographical reach and further establish their presence in the region. 

“When selecting partners, it is of paramount importance to have synergies to exploit, and our two firms have many to share,” said De Angelis.

Meanwhile, Vynn Capital’s Founding and Managing Partner Victor Chua believes that the financial sector and capital markets are due for greater enhancement in efficiency, and large financial institutions are looking at how technology and digitization can help grease their wheels and propel themselves forward.

“Velotrade sits right in the middle of all the action: the pandemic is encouraging demand for their services as there has been a very strong surge in cross-border transactions. We are ready to integrate Velotrade into our portfolio ecosystem, and we have a very optimistic outlook for the company to expand deeper into countries like Malaysia and Indonesia,” said Chua.

Vynn Capital has also just recently announced a partnership with Tunku Ali Redhauddin ibni Tuanku Muhriz, a senior advisor at private equity firm TPG Capital, to support portfolio companies like Velotrade.