40Seas Raises $111M to Grow Cross-Border Trade Financing Platform

40Seas has raised $111 million to grow its FinTech platform for cross-border trade financing.

The firm emerged from stealth mode with the announcement of an $11 million seed funding round that is complemented by a $100 million credit facility for exporters and importers, 40Seas said in a Tuesday (Jan. 10) press release.

“Given today’s harsh macroeconomic conditions, now more than ever, [small to medium-sized businesses (SMBs)] need easy access to financing to have the best chance of survival,” 40Seas Co-Founder and CEO Eyal Moldovan said in the release. “40Seas wants to drive a sea change in how companies access finance, with a unique solution that makes life easier for importers and exporters, serving both directions of a cross-border trade.”

As PYMNTS reported in December, SMBs may be at a disadvantage when it comes to trade finance because the credit markets are dominated by a handful of players.

The share of trade finance requests rejected by SMBs is far higher than the rejection rate for multinational corporates.

This difference can be bridged, at least in part, by data. FinTechs can tap that information to help smooth the way forward for SMBs to get the credit and the cash they need to facilitate trade.

The 40Seas solution enables digital B2B payment functionality while also facilitating cross-border trade between SMBs, according to the company’s Tuesday press release.

It leverages artificial intelligence (AI) and data-driven technology to offer flexible payment options and extend the accessibility of working capital for SMB importers, exporters, freight forwarders and sourcing agencies, the release said.

Since its soft launch in October, 40Seas has financed transactions for dozens of SMBs, according to the press release.

Team8, the venture group that led the seed funding round, said in the release that SMBs need more streamlined and flexible ways to access funding now more than ever.

“Team8 is extremely proud to have partnered with the 40Seas founding team and we are thrilled to have supported their mission to simultaneously accommodate the financing and cash flow needs of importer and exporters,” Team8 Managing Partner Rakefet Russak-Aminoach said in the release.