To enable international commerce for Indian enterprises through its international trade financing platform, KredX GTX, the supply chain financing platform KredX has received final permission from the International Financial Services Centres Authority (IFSCA).
“We are the first in India to gain the final approval; as a result, we have been registered as a business with the IFSCA”. For both us and the whole trade financing ecosystem, this marks a significant turning point. Anurag Jain, founder, and executive director of KredX said that this would strengthen the government’s push for exports.
The International Trade Finance Services (ITFS) platform, which enables global trade finance using technological platforms for exporters and importers through a commercial licence, will be launched according to standards published in 2021 by GIFT-City and IFSCA. An in-principle approval was given to KredX in October 2022, making it one of the license candidates.
The KredX Global Trade Finance Exchange (GTX) licence will assist the company in establishing and running international finance at GIFT City for importers and exporters to secure both pre- and post-shipment financing from Indian and global institutional investors.
By the end of 2023, KredX GTX hopes to have completed transactions worth more than $500 million on this platform and over 2 billion USD in total over the next 18 months.
KredX Ventures IFSC Pvt. Ltd., a fully owned subsidiary of KredX, is the company that created and manages KredX GTX. So far, the platform has been tested in a sandbox while carrying out real-world transactions.
Jain stated that KredX GTX’s goal with this licence is to give Indian exporters and importers access to working capital at reasonable rates against their receivables.
Over 200 exporters and importers are currently registered for KredX GTX, which has attracted significant interest from domestic and international financiers and has already onboarded a number of them. Exporters can sign up for a KredX GTX account to access low-cost financing. There are already around 350 million dollars’ worth of transactions in the queue for Indian exporters.
“We have already completed a number of cross-border trade finance transactions for large enterprises with an annual rate value of more than $50 million,” Jain continued.
With customers from North America, Poland, and other developed economies and sellers from Maharashtra and Gujarat, he said, “We have seen encouraging initial traction across sectors like pharmaceuticals, chemicals, etc.”
As part of its long-term goals, the site will also search for exporters outside of India.
“Our initial strategy is to serve the Indian market first, but this opens up opportunities to partner with exporters outside of India as well, like Bangladesh and other South Asian countries,” Jain added.