Transigo, a software-as-a-service (SaaS) platform, announced in a press release on Wednesday (Dec. 29) that it has completed a $70 million funding round. It was led by Israeli firms E.N. Shoham Business Ltd. and Nawi Brothers, which will allow the company to expand its POS platform to major B2B marketplaces in Asia in Q1 of 2022.
“Cross-border B2B eCommerce 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,”Nir Tal, CEO, Transigo
The $70 million in new capital is “only the beginning for us,” Tal said in the release, adding that Transigo plans to raise another $250 million in the first half of 2022, allowing the company to integrate across more sectors and geographies.
According to the release, Transigo’s POS SaaS platform integrates with the marketplaces’ platforms via a secure application programming interface (API), allowing the marketplace to offer approved buyers up to $80,000 in POS credit with a maximum term of 90 days — with approvals in minutes.
Transigo employs an artificial intelligence (A.I.) deep learning-based scoring algorithm that has been shown to provide highly accurate estimates of a buyer’s future financial performance, according to the release.
Meanwhile, global eCommerce activity has increased over the last year, providing prime growth opportunities for businesses. However, companies must meet cross-border shoppers’ payment preferences by accepting localized payment methods, accommodating local or regional regulatory requirements, and managing a variety of cross-border payment frictions in each market.