[email protected] and VeChain today announced that the NFT underpinning the first Inventory Monetisation transaction has been officially minted on the VeChainThor blockchain. The EUR1.6million transaction will significantly enhance cashflow and access to working capital for a business involved in the design and manufacture of industrial and specialised vehicles in Italy, US and Africa. The development represents a global first, marking the inception of a new model of accessing capital in the supply chain for manufacturing and trading businesses, as well offering a new asset class for investors.
[email protected]’s fintech platform connects manufacturing businesses, from heavy manufacturing and chemicals to high end food and fashion, with funders who monetise unsold stock via a legal “true sale” mechanism, enabling businesses to release capital trapped in stored inventory. Manufacturing businesses can use this revolutionary commercial facility as a more cost-effective alternative to traditional banking or asset-based lending options, without incurring debt. When manufacturers secure a buyer for their stock, they then can request to repurchase it before selling to the end customer.
[email protected]’s fintech platform facilitates access to a new source of improved cashflow for businesses facing increasing pressure from disruptions in the supply chain. Underpinned by proprietary technology and integration with the VeChainThor blockchainthat manages the NFT life-cycle, the platform allows investors to have continuous oversight of inventories and their subsequent trading activities. Additionally, the integration with manufacturers’ existing systems, as well as enabling monitoring activities, allows the manufacturing business to receive reports on inventory optimisation and risk management.
The next phase of the alliance between [email protected] and VeChain will launch in the coming months, with further Inventory Monetisation transactions worth up to USD8.5m budgeted, also funded by VeChain as an anchor investor, alongside multiple liquidity providers including VeChain ecosystem stakeholders, additional cryptocurrency asset managers and direct investors through liquidity pools partnerships.
Alessandro Zamboni, CEO at [email protected] said, “The scale of the market for inventory monetisation is immense. For too long, the inventory which businesses hold has been a cash drain until it is sold. Traditional lenders have offered discount rates and highly restrictive covenants. Supply chains have yet to recover from Covid-19 and the shift to “just in case” from “just in time” means that the costs which businesses have had to bear have continued to soar. Our Inventory Monetisation facility offers a new, more cost-effective alternative for businesses to free up significant levels of working capital. In VeChain, we have found the ideal, visionary partner to progress this path using digital assets and we are look forward to offering access to this vast new market to more investors.”
Sunny Lu, CEO at VeChain Foundation, said, “This partnership brings to market a highly innovative solution which employs emerging digital technologies to solve a decades old problem for businesses globally. By deploying this, our companies together are able to limit a need for overproduction, promote sustainable global development, improve cashflow for businesses and create a new digital asset class which provides capital directly to the real economy. We look forward to launching – phase 2 of our alliance to involve our community and the rest of the crypto market into this disruptive initiative”.