{"id":47072,"date":"2023-01-26T16:43:11","date_gmt":"2023-01-26T16:43:11","guid":{"rendered":"http:\/\/www.brandon.ddtest.info\/multisite-test\/supply-chain-finance-startup-twinco-is-raising-a-100-million-debt-facility\/"},"modified":"2023-01-26T16:43:11","modified_gmt":"2023-01-26T16:43:11","slug":"supply-chain-finance-startup-twinco-is-raising-a-100-million-debt-facility","status":"publish","type":"post","link":"http:\/\/www.brandon.ddtest.info\/multisite-test\/supply-chain-finance-startup-twinco-is-raising-a-100-million-debt-facility\/","title":{"rendered":"Supply chain finance startup Twinco is raising a $100 million debt facility."},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Twinco, the Madrid-based supply chain finance company focused on the apparel industry, is raising a $100 million debt facility, CEO Sandra Nolasco tells Axios<em>.<\/em><\/p>\n<p><strong>Why it matters:<\/strong> Twinco aims to streamline the complicated and fragmented process of financing apparel production from manufacturing to delivery of goods.<\/p>\n<p><strong>Details:<\/strong> So far Twinco, which retained structured-debt boutique Alantra as its financial adviser, has raised $30 million toward the asset-backed debt facility, Nolasco says.<\/p>\n<ul>\n<li>The finance startup is currently in negotiations with alternative credit funds and investment banks to secure the remainder, she says.<\/li>\n<li>The amount of interest paid depends on the amount of risk investors in the debt facility are willing to take on.<\/li>\n<li>Historically this type of financing has a very low default rate, Nolasco adds.<\/li>\n<\/ul>\n<p><strong>Driving the news:<\/strong> Twinco closed a $12.5 million Series A comprising growth equity and venture debt this week.<\/p>\n<ul>\n<li>It was led by Quona Capital, with participation from Working Capital and existing investors Mundi Ventures and Finch Capital. Zubi Capital provided the venture debt.<\/li>\n<li>Proceeds will help expand Twinco&#8217;s presence in countries that are leading suppliers of apparel products and in its technology and data capabilities, particularly tied to ESG.<\/li>\n<li>The company has raised, including pre-seed and seed rounds, a total of about \u20ac15.5 million of growth equity and \u20ac3 million of venture debt, Nolasco says, or a little over $20 million in all.<\/li>\n<\/ul>\n<p><strong>How it works (usually):<\/strong> Traditionally, when a U.S. clothing brand looks to source apparel production, it submits a purchase order to a manufacturer based in a country like Vietnam or Bangladesh.<\/p>\n<ul>\n<li>The manufacturer would have to go to a local bank to secure a loan to purchase the materials, such as cotton, to begin producing that order.<\/li>\n<li>On the other end, the apparel wholesaler would retain a factor or factoring services to obtain cash upfront on the invoices or goods they receive while they also wait for payment.<\/li>\n<\/ul>\n<p><strong>How it works (now):<\/strong> Twinco steps in to cover the entire cycle from purchase order to final invoice payment.<\/p>\n<p><span data-ad-status=\"AD\" data-ad-type=\"midStoryAd\"\/><\/p>\n<ul>\n<li>This helps small and medium-sized businesses in emerging markets obtain materials at lower cost, and grants apparel brands and retailers better transparency on sourcing in terms of environmental and labor practices, Nolasco points out.<\/li>\n<\/ul>\n<p><strong>By the numbers:<\/strong> In 2020, its first year, Twinco funded $7 million worth of purchase of orders, Nolasco says.<\/p>\n<ul>\n<li>In 2021, that number grew to $37 million, and in 2022 to $100 million. This year it will fund between $300 million and $350 million in purchase orders.<\/li>\n<li>Twinco&#8217;s customers buy more than $10 billion a year in goods and the company is growing between three and four times year over year.<\/li>\n<\/ul>\n<p><strong>What&#8217;s next:<\/strong> Twinco is initially focused on the apparel industry, but will expand its practice into other categories such as consumer electronics, Nolasco says.<\/p>\n<ul>\n<li>Once Twinco processes between $3 billion and $4 billion in purchase orders per year, at which it will have a clear path to profitability, it can contemplate an exit such as an IPO, Nolasco says.<\/li>\n<\/ul>\n<\/div>\n\n<br \/><a href=\"https:\/\/news.google.com\/__i\/rss\/rd\/articles\/CBMiZ2h0dHBzOi8vd3d3LmF4aW9zLmNvbS9wcm8vcmV0YWlsLWRlYWxzLzIwMjMvMDEvMjYvc3VwcGx5LWNoYWluLWZpbmFuY2Utc3RhcnR1cC10d2luY28tcmFpc2luZy0xMDBtLWxvYW7SAQA?oc=5\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Twinco, the Madrid-based supply chain finance company focused on the apparel industry, is raising a $100 million debt facility, CEO Sandra Nolasco tells Axios. Why it matters: Twinco aims to streamline the complicated and fragmented process of financing apparel production from manufacturing to delivery of goods. Details: So far Twinco, which retained structured-debt boutique Alantra &hellip;<\/p>\n","protected":false},"author":1,"featured_media":47073,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[161],"tags":[],"_links":{"self":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/posts\/47072"}],"collection":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/comments?post=47072"}],"version-history":[{"count":0,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/posts\/47072\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/media\/47073"}],"wp:attachment":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/media?parent=47072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/categories?post=47072"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/tags?post=47072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}