Twinco Capital, a global supply chain finance solution that covers the production cycle from purchase order to final invoice payment, has secured a 12 million dollar equity and debt round.
The Amsterdam and Madrid-based fintech business, which was founded 2019 by bankers Sandra Nolasco and Carmen Marín, said it is on a mission to reduce the world’s estimated 1.7 trillion dollar trade finance gap, which disproportionately affects small and medium-sized companies in emerging countries and hinders their ability to access business opportunities and grow. Via its platform, SMEs all over the world can access affordable liquidity when they most need it, which is when they receive an order and need to start production.
Through its solution, the company engages with retail and apparel corporations to offer funding to their suppliers worldwide, advancing up to 60 percent of the purchase order value upfront and paying the remainder upon delivery. The process is designed to be a fully transparent, no-hassle experience that provides the suppliers with funding for its purchase orders within 48 hours.
“Twinco is focused on a significant pain point in the massive and underpenetrated market that is supply chain finance,” said Monica Brand Engel, co-founder and Managing Partner at Quona. “At Quona, we’ve been incredibly impressed by the strength of this founding team and its business model, and we’re excited to be part of their journey to provide much-needed and affordable supply chain finance to help responsibly fuel the economic gains of emerging market suppliers.”
The key to Twinco’s success is its unique risk model, which complements the traditional view on financial risk with commercial performance and ESG data. In other words, it uses machine learning to evaluate the quality and strength of the commercial relationships between buyers and their suppliers.
The technology enabled user experience was designed to accommodate the complexities of ever-changing trade transactions. Purchase orders can be canceled, replaced or changed, and the Twinco financing flow accompanies these changes without a glitch.
“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,” said CEO Sandra Nolasco. “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’s ambitious mission can only be achieved by bringing together all the relevant parties: Buyers, Suppliers and Investors,” said COO Carmen Marin. “In this way, Twinco is a catalyst for change. With our new funding, we will be extending our geographic scope and data capabilities. 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.”
The investment round was led by Quona Capital.