Taulia today announced its collaboration with International Finance Corporation (IFC), a member of the World Bank Group, to build sustainable SCF programs for SMEs in emerging markets.
IFC is Taulia’s inaugural multilateral funder and adds to its already large and growing multi-funder network, which enables the business to access an increasingly broad and diverse funding pool.
Multifunder models within SCF programs are designed to provide resiliency through diversification and a wider pool of funding for different currency, geography, client size, and credit profiles. Combined with the right technology, it enables businesses to hedge against liquidity risk, particularly during periods of economic uncertainty.
As an industry leader in ESG financing, IFC will assist Taulia in developing its sustainable SCF programs, supporting SMEs in emerging markets with enhanced access to financing solutions, where such opportunities are often limited.
By combining Taulia’s SCF technology with IFC’s global reach and influence, the collaboration aims to offer efficient and sustainable solutions for SMEs using early payments and working capital programs.
The collaboration will draw on IFC’s own deepening commitment to sustainable SCF under its Global Trade Supplier Finance (GTSF) Program, which recently doubled in size to $1 billion and extends financial discounts to emerging market suppliers that improve their social and environmental performance.
The first-ever financial platform to provide sustainability-linked discounts on short-term working capital, IFC’s GTSF program works with global brands to drive improvements among supply chain partners, boosting environmental performance, efficiency, waste treatment, emissions reductions, improved labor practices, and gender inclusivity.
Cedric Bru, CEO of Taulia, commented: “Our collaboration with IFC is a significant step forward for Taulia in expanding our reach in emerging markets and supporting SMEs in accessing cash. The combination of IFC’s international expertise with Taulia’s technology will enable corporations to optimise their working capital so they can pursue opportunities that require extra liquidity.”
Femi Akinrebiyo, Global Manager for Manufacturing and Trade Supplier Finance at the International Finance Corporation, commented: ”Smaller firms are the engine of growth and job creation in emerging markets, but it’s precisely these businesses that often struggle to obtain the working capital they need to thrive. We’re proud to support SMEs through our new collaboration with Taulia, which will draw on IFC’s pioneering work in sustainable SCF to boost businesses, reward companies contributing to a more sustainable future, and help achieve global goals for climate action.”
