Spain-based supply chain finance solution Twinco Capital has raised USD 12 million in equity and debt in its mission to reduce the estimated USD 1. 7 trillion trade finance gap.

The company plans to use the funds to accelerate its expansion within its major sourcing countries as well as to strengthen its technology and data capabilities, with a focus on ESG. The round was led by Quona Capital with participation from Working Capital Innovation Fund alongside existing investors Mundi Ventures and Finch Capital. Twinco’s officials said that if everyone wants 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.

Extraordinary events, such as those experienced these since 2019, have revealed the fragility of supply chains, which are historically unable to adapt to the complexity of global production networks. Supporting fair supply chains According to the company, it proposes 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 provides affordable loans to factories, particularly small and medium-sized companies in emerging countries which are disproportionately affected by the trade finance gap and acts as a stopgap for suppliers.

It advances up to 60% of a purchase order value upfront in a process that is designed to be ‘fully transparent’ and ‘no hassle’. Twinco’s ambitious mission can only be achieved by bringing together all the relevant parties: Buyers, Suppliers and Investors. In this way, Twinco is a catalyst for change.

The company plans to extend its geographic scope and data capabilities with the new funding. It currently has more than 100 suppliers across 12 countries, including Bangladesh, China, Pakistan, South Korea, Turkey, Thailand, Vietnam, Indonesia, and Spain. .