Polytrade, a blockchain-based trade finance protocol that aims to streamline global trade through real-time data, has secured $3.8 million in a seed round led by Alpha Wave, Matrix Partners, Polygon Ventures, and CoinSwitch Ventures.
Singularity Ventures and GTM Ventures are two additional partners. The startup intends to use the money to develop different models to move the complete trading supply system to the blockchain.
In 2023, Polytrade projects that its trade funding book will reach $50 million. It anticipates $200 million in liquidity for its lending protocol the following year, and the total trading ecosystem traffic should surpass $1 billion.
Despite being accessible to the retail market, the network emphasizes institutional players more due to their longer-term outlook. The startup also plans to grow in the European, American, and South American markets.
“My single focus is to bring every single trade document, trade financial players and trade counterparties on the chain so that everybody can go to one blockchain page and know everything about a particular buyer or supplier,” said Piyush Gupta, founder and CEO of Polytrade.
According to Piyush Gupta, founder and CEO of Polytrade, the biggest issue is the lack of transparency in the worldwide supply network. Even submitting a document to a bank in India needs an ink-based signature due to the continued use of manual processes and paper-based paperwork.
The early modules of Polytrade include a financing arm that posts actual yields on web3. The platform seeks to access invoices and working capital financing for small and large businesses. To date, the platform has received about 2 million bills.
Polytrade provides borrowers access to low-interest and swift financing tapped from crypto lenders
The widespread use of DeFi has created enormous chances to change the fintech industry. Trade finance and decentralized finance are currently coming together in the contemporary financial sector.
By encouraging trade finance in the DeFi sector, platforms like Polytrade play a crucial role in systematically implementing blockchain technology.
Polytrade aims to introduce real-world assets to the cryptocurrency space and create an intuitive user experience by connecting buyers, sellers, insurers, and investors.
It is concentrated on improving the overall experience of small lenders by offering real-world borrowers seamless lending choices with affordable interest rates and prompt financing.
Additionally, Polytrade works to create a full-stack lending protocol to support the expansion of small companies by introducing cutting-edge solutions to the DeFi industry.
Utilizing blockchain technology to its greatest extent, it aims to streamline receivables financing for real-world borrowers by supplying liquidity and capital tapped from crypto natives, freeing up crucial working capital.
Polytrade continuously works to solve the problems faced in the $7 trillion trade finance business. Polytrade has an experienced team that is painstakingly combining traditional and modern finance.
The $1.5 trillion short-term credit supply-demand gap, which has gone unaddressed due to different problems with traditional business practices of trade finance, is one of the main problems.
Building on the Polygon Network, Polytrade aims to optimize every aspect of the typical trader’s experience with receivables funding. It is currently working towards tokenizing real-world assets to facilitate the seamless transfer of assets on-chain.
To reinforce a sense of security and draw in investors, Polytrade is also aggressively building a liquidity pool and offering insurance-backed investments to crypto natives.
