RICHMOND, Va., Dec. 29, 2021 /PRNewswire-PRWeb/ -- Fintech
company Transigo, a provider of SaaS software that enables
cross-border B2B marketplaces to provide point-of-sale financing to
its buyers, announced today it had successfully secured up to
$70 million funding facility from two
publicly listed companies in Israel: E.N. Shoham Business Ltd (SHOM:IT) and
Nawi Brothers Group Ltd (NAWI:IT) with a business potential for
increasing funding. This facility will allow Transigo to expand its
point-of-sale SaaS platform to major B2B marketplaces in
Asia in the first quarter of
2022.
"Cross-border B2B e-commerce is booming, with the market in
China alone expected to hit almost
$1 trillion in 2022. However, lack of
credit is limiting growth. This is especially the case in Asian B2B
marketplaces, which typically provide zero credit terms. Transigo
is helping remove these financing constraints. This funding
engagement, being with two public companies, will enable us to
connect with more traditional institutions such as banks. This will
further strengthen our financing capabilities," says Nir Tal, CEO of Transigo.
He added, "We expect to complete integration with multiple major
Asian B2B marketplaces in the first quarter of 2022. And that's
only the beginning for us – we are planning to increase the size of
our total funding facilities by an additional $250 million in the first half of 2022. This will
enable us to integrate with even more marketplaces and drive
exponential growth in both financing volumes and revenue."
Transigo's point-of-sale SaaS platform integrates with the
marketplaces' platforms via a secure API and enables the
marketplace to offer approved buyers up to $80,000 in point-of-sale credit with a maximum
term of 90 days. Approvals can be completed within minutes. As
buyers are usually small-and-medium-sized enterprises with limited
working capital, providing such deferred net terms can help improve
the marketplaces' buyer experience, boost retention, increase
average order values, and reduce exposure to seasonal fluctuations.
Using Transigo's invoice factoring platform, the marketplaces bear
no credit risk or cost – creating a win-win situation for them, the
buyers, and Transigo.
To assess prospective buyers and minimize risk, Transigo uses an
AI deep learning-based scoring algorithm that has been tested and
shown to be able to provide highly accurate estimates of a buyer's
future financial performance. Transigo also further caps its
downside risk by using an innovative structure with high credit
insurance coverage and direct pulls from the borrowers' bank
accounts for settlement payments.
Fred Simon, Transigo's lead
investor, had this to say: "The potential in providing a scalable
SaaS-type solution that can help bridge the financing gap in
cross-border B2B marketplaces was evident to me from the get-go.
I'm glad that Transigo has been executing on its plan and I think
it has a real possibility of becoming a genuine leader among the
next generation of fintechs."
About Transigo
Founded in 2018 and based in Haifa,
Israel, Richmond, Virginia,
and Hong Kong. Transigo
(https://www.transigo.io/) helps cross-border B2B marketplaces
scale by offering point-of-sale financing to their customers at
zero risk to the marketplaces. Transigo counts among its investors
entrepreneurs which have successfully co-founded startups that have
gone public and reached multi-billion-dollar valuations.
Cautionary Note Regarding Forward Looking Statements
Certain disclosure in this release, including statements regarding
the increased or continued industry interest in Transigo's product,
future growth, the timing of additional activity on the platform
and the related creation of economic value constitute
forward-looking statements. In making the forward-looking
statements in this release, Transigo has applied certain factors
and assumptions that are based on Transigo's current beliefs as
well as assumptions made by and information currently available to
Transigo, including, but not limited to, Transigo's product
continuing to operate as expected, the industry continuing to see
value in Transigo's product and the ability of customers to
complete additional activity on the platform. Although Transigo
considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect, and the
forward-looking statements in this release are subject to numerous
risks, uncertainties and other factors that may cause future
results to differ materially from those expressed or implied in
such forward-looking statements, including delays to additional
activity and adoption of the platform. Readers are cautioned not to
place undue reliance on forward-looking statements. Transigo does
not intend, and expressly disclaims any intention or obligation to,
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise, except as required
by law.
Media Contact
Nir Tal, Transigo, 1
888-783-6052, nir.tal@transigo.io
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SOURCE Transigo