Supply chain finance in Russia has got a much needed boost through a fast growing blockchain (distributed ledger technology- DLT) platform startup company known as Factorin. The company is understood to be one of the fastest growing B2B blockchain platforms for supply chain and trade finance in Europe, helping to revolutionise international trade finance, opening new opportunities and enhancing efficiency in the trade finance market.
Through 2020 so far, the platform reports that it has processed more than 600,000 transactions with a total value over $1 billion.
The platform was put in commercial operation in June 2019. Currently, the platform is used by leading retail chains, 37 banks and factoring organisations as well as over 700 suppliers and buyers. Two major retailers, Magnit and Dixy, with $20 and $5 billion annual turnover respectively, became Factorin’s clients within the first year of operation. Factorin is one of the portfolio companies of London-based Digital Horizon VC.
Factorin is one of the few fully commercially operating supply chain finance platforms. The platform addresses the key issue of complex workflows, data privacy and security which have combined to interfere with the financing of small and medium-sized businesses to date. It facilitates seamless and secure interaction between banks, suppliers and buyers.
Andrei Maklin, co-founder and CEO of Factorin, explains: “Blockchain enables you to create fundamentally new services and business models that cannot be implemented on traditional IT architecture. The decentralised platform Factorin allows all participants to communicate directly with each other and decide what data is shared and with whom they share it. The demand for Factorin’s services, which are such a unique SCF product, is at an all-time high, which our continued fast growth ably demonstrates. Since January, the monthly turnover of financing processed through the platform has increased fivefold and in October amounted to over $165 million."