The supply chain financing industry is expanding, averaging about a 30 percent yearly growth rate, according to recent figures from BCR Publishing. The industry could be worth as much as $46.5 billion already, and that number will surely rise.
The market has also just become a bit more consolidated. Supply chain financing firm ASYX, which operates in the Netherlands and Indonesia, reportedly reached a deal to be acquired by Singapore-based FinTech firm ApexPeak. The merger will combine ApexPeak’s small business working capital solutions with ASYX’s digital financing for suppliers. According to reports, ASYX has corporate clients in a dozen countries around the globe.
“Our acquisition of ASYX helps move ApexPeak one step closer to solving the procure-to-pay finance puzzle,” said ApexPeak CEO Gakim Solomons in a statement.
Financial details of the deal were not disclosed by the companies, but they did say that ASYX would remain a separate brand and continue to run its management and technical teams independently. ApexPeak will integrate ASYX’s supply chain finance technology into its existing suite of services, reports said.
Looking forward, the firms said that they plan to explore new partnerships with banks and corporations to strengthen their financing capabilities.
The supply chain finance market has become an especially critical resource for small business suppliers, especially in the wake of the financial crisis, the companies said. SMEs have been forced to turn to alternative sources of working capital to assure they can continue to operate their businesses, even as their large corporate buyers take longer to settle their invoices.
According to Solomons, the merger is part of the firm’s strategy to become a leading resource for small businesses when traditional sources run dry.
“By providing businesses with access to smart capital, we want to be that third option for decision-makers, alongside banks and credit cards, helping them unlock their growth potential,” he said.