Velotrade Company Profile

Background

Overview

Velotrade is a Hong Kong-based fintech company specializing in digital trade finance solutions. Established in 2017, the company operates a platform that connects businesses seeking working capital with institutional investors willing to provide funds. Velotrade offers services such as invoice financing, e-commerce financing, purchase order financing, and supply chain financing, catering to a diverse range of industries.

Mission and Vision

Velotrade's mission is to bridge the gap between corporates in need of financial products and investors ready to provide liquidity. The company's vision is to develop a comprehensive ecosystem that serves the needs of different stakeholders, aiming to keep trade engines moving and foster sustainable growth.

Industry Significance

As a pioneer in digital trade finance, Velotrade plays a crucial role in addressing the global trade finance gap, which was estimated at USD 1.5 trillion in 2017. By leveraging technology to streamline financing processes, Velotrade enhances operational efficiency for businesses and offers investors access to a new asset class.

Key Strategic Focus

Core Objectives

Facilitate Trade Financing: Provide businesses with agile financing solutions to support cross-border trade operations.

Investor Access: Offer institutional investors opportunities to invest in trade receivables, diversifying their portfolios.

Technological Innovation: Continuously enhance the platform's technological infrastructure to improve user experience and operational efficiency.

Areas of Specialization

Invoice Financing: Enabling businesses to monetize unpaid invoices, improving cash flow.

E-commerce Financing: Supporting online retailers with financing solutions tailored to their needs.

Purchase Order Financing: Providing capital to fulfill large purchase orders without the need for traditional loans.

Supply Chain Financing: Offering solutions to optimize working capital within supply chains.

Key Technologies Utilized

In-House Developed Platform: A fully digital platform that automates the financing process, reducing manual intervention and errors.

Data Analytics: Utilizing advanced analytics for credit risk assessment and decision-making.

Digital Onboarding: Streamlining client onboarding through electronic document exchange and verification.

Primary Markets Targeted

Asia-Pacific Region: With a strong presence in Hong Kong, Mainland China, Singapore, Taiwan, Malaysia, Thailand, and Vietnam.

Southeast Asia: Expanding operations into Malaysia and other Southeast Asian markets.

Financials and Funding

Funding History

Initial Funding: Velotrade secured initial funding to develop its platform and commence operations in 2017.

Partnership with Vynn Capital: In July 2021, Velotrade partnered with Vynn Capital, a Southeast Asia-focused venture capital firm, to scale its technological infrastructure and expand into new geographies in Southeast Asia.

Total Funds Raised

Specific details regarding the total funds raised by Velotrade are not publicly disclosed.

Notable Investors

Vynn Capital: A Southeast Asia-focused venture capital firm that invested in Velotrade in 2021.

Utilization of Capital

Technological Enhancement: Investing in platform development to improve user experience and operational efficiency.

Geographical Expansion: Expanding operations into Southeast Asian markets, particularly Malaysia.

Pipeline Development

Key Pipeline Candidates

E-commerce Financing Solutions: Developing tailored financing products for the growing e-commerce sector.

Supply Chain Financing Products: Creating solutions to optimize working capital within supply chains.

Stages of Development

E-commerce Financing Solutions: In development, with plans to launch in the near future.

Supply Chain Financing Products: In the conceptualization phase, with ongoing market research.

Target Conditions

E-commerce Financing Solutions: Targeting online retailers seeking flexible financing options.

Supply Chain Financing Products: Aiming to assist businesses in managing working capital more effectively.

Anticipated Milestones

E-commerce Financing Solutions: Expected to launch within the next 6-12 months.

Supply Chain Financing Products: Anticipated to be introduced within the next 12-18 months.

Technological Platform and Innovation

Proprietary Technologies

Digital Trade Finance Platform: An in-house developed platform that automates the financing process, reducing manual intervention and errors.

Data Analytics Tools: Utilizing advanced analytics for credit risk assessment and decision-making.

Significant Scientific Methods

Credit Risk Assessment Models: Employing data-driven models to evaluate the creditworthiness of debtors.

Digital Onboarding Processes: Streamlining client onboarding through electronic document exchange and verification.

Leadership Team

Gianluca Pizzituti – CEO & Co-Founder

Professional Background: Started his career in the Equity Derivatives desk at Dresdner Kleinwort in London. In 2009, moved to Singapore to found and manage a proprietary trading company. Joined Velotrade in Hong Kong in 2014.

Role at Velotrade: Oversees the company's strategic direction and operations.

Vittorio De Angelis – Executive Chairman & Co-Founder

Professional Background: Worked at JP Morgan and Dresdner Kleinwort Wasserstein in London as an Equity Derivatives trader. Later joined Bank of America London as a Managing Director and co-head of the Equity Derivatives Trading team. Moved to Hong Kong in 2008 to head Equity Derivatives Brokerage at Louis Capital Markets.

Role at Velotrade: Provides strategic oversight and leadership.

Emmanuel V. Pitsilis – Senior Advisor & Co-Founder

Professional Background: Spent over two decades at McKinsey & Company in Europe, North America, and Asia, holding various leadership roles as Senior Partner. Currently an entrepreneur and angel investor, focusing on leveraging technology to transform the service and finance industries.

Role at Velotrade: Advises on strategic initiatives and business development.

Leadership Changes

No significant leadership changes have been reported in recent times.

Competitor Profile

Market Insights and Dynamics

Market Size and Growth Potential: The global trade finance market is substantial, with a significant gap in financing for SMEs. The increasing adoption of digital solutions presents growth opportunities.

Industry Trends: There is a growing shift towards digitalization in trade finance, with fintech companies playing a pivotal role in bridging the financing gap.

Competitor Analysis

MODIFI: A fintech company offering trade finance solutions, with a focus on digitalizing trade processes.

Bolero: Provides electronic trade documentation and trade finance solutions.

Mitigram: Offers a digital platform for trade finance, connecting buyers, sellers, and financiers.

Strategic Collaborations and Partnerships

Vynn Capital: In July 2021, Velotrade partnered with Vynn Capital to scale its technological infrastructure and expand into Southeast Asia.

MUFG Bank: In December 2020, Velotrade was selected by MUFG Bank to manage its internal invoice processing requirements, enhancing operational effectiveness.

Operational Insights

Strategic Considerations: Velotrade focuses on technological innovation and strategic partnerships to enhance its market position.

Competitive Advantages: The company's fully digital platform, regulatory compliance, and strategic partnerships provide a strong competitive edge.

Strategic Opportunities and Future Directions

Strategic Roadmap

Technological Enhancement: Continuing to invest in platform development to improve user experience and operational efficiency.

Geographical Expansion: Expanding operations into Southeast Asian markets, particularly Malaysia.

Product Diversification: Developing new financing products tailored to emerging market needs.

Future Business Directions

E-commerce Financing: Introducing tailored financing solutions for the growing e-commerce sector.

Supply Chain Financing: Offering products to optimize working capital within supply chains.

Opportunities for Expansion

Southeast Asia: Leveraging partnerships to expand into Malaysia and other Southeast Asian markets.

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