FinTech: Triterras’ Kratos Blockchain Platform Clocks $5B Trade Finance Volume
Triterras’ Kratos marketplace handled that much trade finance volume in H1 2020.
Triterras Fintech launched its Kratos blockchain-enabled, end-to-end global trade and trade finance platform in June 2019 with the Trade Discovery module. In February 2020, Triterras added the Trade Finance module to Kratos.
Triterras has already handled about $5 billion of trade finance on Kratos over the six months ended August 31, 2020. (CROWDFUND INSIDER)
A reference to the Kratos website today shows (as of August 2020) a total transaction volume of $8.7 billion since August 2019. That covered 4,800+ transactions. It claims 17B+ of Cumulative AUM of funds onboarded.
Kratos was born out of Triterras’ objective to address the large trade finance gap for SMEs and to help streamline and digitize the trading processes.
According to the WTO, SMEs have $1.5 trillion in annual unmet trade financing needs and have 60% of their financing requests rejected by banks.
Kratos is a platform that seeks to bring together SME’s and alternative lenders. It offers financing options such as supply chain, account receivables, and loans.
“We are encouraged by the trajectory of both our respective trade and trade finance volumes and fees, as traders and lenders continue to realize significant business benefits from our Kratos platform,” said Triterras Fintech Chairman and CEO Srinivas Koneru in a statement last week. “The small and medium-sized enterprise (SME) trade and trade finance market is very large and our platform will address the $1.5 trillion estimated annual trade finance shortfall.”
How Kratos financing works
- Kratos completes KYC on all relevant parties
- The borrower selects the type of financing option & requests facility from the lender
- The lender performs due diligence & approves the facility
- Borrower requests for financing the transaction
- The lender approves the request & funds are disbursed
- The borrower repays the lender on or before maturity
The fintech makes its money from fees earned off the trade finance transactions.
Triterras Fintech claims on its website that it has been consistently profitable from inception.
“We are on track to meet or exceed our initial fiscal year 2020 projections that were released in July 2020,” said Koneru recently. “We enter the second half of the fiscal year with solid operating momentum, giving us confidence in our fiscal year 2021 projections.”
Triterras on track to list on the Nasdaq
By October 2020, Triterras is likely to merge with SPAC (special purpose acquisition company) Netfin Acquisition Corp. (NASDAQ: NFIN). Shareholders will receive shares and warrants of the combined company.
The combined company’s ordinary shares and warrants will list on Nasdaq under the symbols TRIT and TRITW. However, that is subject to regulatory and shareholder approvals and other customary closing conditions.
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