A global supply chain finance solution that covers the production cycle from purchase order to final invoice payment, Twinco Capital has closed a US$12 million equity and debt round.
The investment was led by Quona Capital, and included participation from Working Capital, as well as existing investors Mundi Ventures and Finch Capital. Zubi Capital provided the venture debt portion.
The funds will be used to accelerate the company’s expansion within the major sourcing countries and strengthen its technology and data capabilities, in particular in relation to ESG.
Twinco Capital says that it is on a mission to reduce the world’s estimated US$1.7 trillion trade finance gap, which disproportionately affects small and medium-sized companies in emerging countries and hinders their ability to access business opportunities and grow.
Through its solution, the company engages with large corporations, mostly in the retail and apparel sectors, and offers funding to their suppliers worldwide, advancing up to 60 per cent of the purchase order value upfront and paying the remainder upon delivery.
The Amsterdam and Madrid-based FinTech was founded in 2019 by Sandra Nolasco (CEO), a banker and specialist in trade finance with a career spanning over 20 years in major European commercial banks, and Carmen Marín (COO), who has over 16 years of management experience in both equity investing and project finance at Banco Santander.
“Twinco is focused on a significant pain point in the massive and underpenetrated market that is supply chain finance,” says co-founder and Managing Partner at Quona, Monica Brand Engel.
“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.”
“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,” says 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.”
“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,” says 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 programme, the Twinco ESG Tilt, where business intelligence is directly linked to beneficial purchasing and funding conditions.”