According to the latest reports on July 13th, 2021, Marco Financial, a Miami-based trade finance company has successfully secured a seed funding of $7 million and $75 million in a credit facility, driven by Arcadia Funds LLC and Kayyak Ventures, to expand its credit line to $100 million.
Additional financial contributors in this seed round and extended credit facility include Village Global VC, Flexport Ventures, Tresalia Capital, 342 Capital, Struck Capital, Antler LLC, Antler Elevate, Florida Funders, and Fox Ventures. While strategic angel financial backers include Phil Bentley, CEO of Mitie, and Naman Budhdeo, CEO and Co-Founder of Tripstack and FlightNetwork.
Small & medium-sized businesses in Latin America face issues when it comes to getting funds to export their goods to the United States. This is the gap that Marco Financing is focused on bridging through its tech-enabled risk-assessment platform that can give improved insight on who should get loans.
Marco is a trade finance platform that is concentrating on the exporters in the Latin American markets and the raised seed funding will be used to “facilitate the trade finance rails for the world’s largest logistics and shipping conglomerates.”
Marco is seeking an embedded financial structure to boost SMEs in Latin America. This raised capital will help supply chain finance, asset-backed lines of credit, purchase orders, and stock financing.
As per Peter D. Spradling, COO and co-founder of Marco, “Small exporters especially in Latin America market are struggling with a disrupted financing system that makes it complex for them to compete with the larger exporters. Banks are not working to cater to the requirements of smaller organizations, SMEs often have to wait around 90 days before rejecting more than 50% of trade finance proposals. We created Marco especially to encourage this underrated market. This seed funding will aid build a more steady and impartial trade ecosystem.”
According to Jacob Shoihet, Marco’s co-founder and CEO, “Not only there is a roughly $350 billion trade finance market to consider, but demonstrated data from Javier Urrutia, director of Foreign Investments at PROCOLOMBIA, an organization that is focused on boosting foreign investment and nontraditional exports in Colombia, that for every 1% hike in export productivity, 500,000 employment opportunities can be created.”
He further added, “For SMEs in trade, it is essential for organizations to create improved job opportunities and lower the poverty rate. By making it simpler for companies to transcend the 30, 60, 90 and now even 120 days they wait to be paid for supplies, we can address that gap and use billions of value for companies to scale. ”
Earlier, in September 2020, Marco raised $26 million in equity and credit back and since that round, it has assisted finance trade deals in 20 nations. Marco stated that it has appointed Prajwal Manalwar as Chief Product Officer and Sabrina Teichman as Chief Growth Officer. Manalwar previously worked at PayPal as a product lead to enable PayPal debit cards and its extension with 3DS platform, wallet tokenization for improved transaction authorization rate, and extending PayPal’s importance in in-store payment via association with Google Pay and SamsungPay. Teichman joins after spending 11 years in the Federal Government, most recently handling the tasks as Managing Director for the Western Hemisphere in the U.S. Government’s development bank.