India-based B2B eCommerce platform SOLV is integrating invoice financing capabilities through a new partnership with MonetaGo.
In a recent announcement, SOLV said its collaboration with MonetaGo to add invoice financing, otherwise known as factoring, onto the platform will aim to support B2B trade for an estimated 60 million small and medium-sized businesses (SMBs) across India. The integration also leverages MonetaGo’s anti-fraud capabilities to address the risk of double supplier invoices for buyers.
“We are pleased to partner with MonetaGo to further transparency in transactions and to enable a secure environment for SME buyers and sellers to operate in,” said SOLV CEO Nitin Mittal in a statement. “SOLV believes that MonetaGo’s solutions built on blockchain to address the problem of double financing of invoices augments SOLV’s blockchain-based supply chain finance solution for invoice financing and will help mitigate the systemic risk to the businesses and institutions with whom we work every day.”
The integration follows previous initiatives from SOLV to collaborate with Experian, Receivables Exchange of India and Bank of Baroda to integrate additional financial services features onto its platform.
Reports in EnterpriseTimes.co.uk noted that SOLV deploys blockchain technology as well as artificial intelligence and machine learning to focus on smoothing cash flow for small businesses trading with each other in India. The collaboration with MonetaGo will wield the latter’s API platform technology for seamless integration.
MonetaGo first launched its blockchain-based invoice financing network in 2018, with a focus on addressing factoring fraud. At the time, MonetaGo Chief Executive Jesse Chenard said an estimated 1 to 2 percent of invoice financing around the world is impacted by fraud occurring with B2B suppliers send multiple invoices related to a single order to multiple financing avenues in order to obtain more financing on a single order.
A lack of communication between financiers enables this fraud to go on, Chenard told American Banker in an interview at the time.