The International Finance Corporation (IFC) has joined supply chain finance platform Taulia as a funder, in a move aimed at developing sustainable supplier finance programmes for SMEs in emerging markets.

The IFC, the World Bank’s financing arm, is the first multilateral funder to join Taulia’s network, the San Francisco-headquartered company says.

Taulia, which is majority owned by software giant SAP, offers payables, receivables and inventory finance solutions to SMEs and corporates through its platform, using a multi-funder model.

“Our collaboration with IFC is a significant step forward for Taulia in expanding our reach in emerging markets and supporting SMEs in accessing cash,” says Taulia CEO Cedric Bru.

“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.”

The company had not answered GTR questions about the arrangement as of press time, but says in a statement that the IFC will help Taulia develop sustainable supply chain finance programmes in emerging markets, where supply of such facilities falls short of demand.

The IFC is providing funding from its US$1bn Global Trade Supplier Finance Program, through which it funds supply chain finance programmes offered by commercial lenders and platforms.

“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,” says Femi Akinrebiyo, the IFC’s global manager for manufacturing and trade supplier finance.

“We’re proud to support SMEs through our new collaboration with Taulia, which will draw on IFC’s pioneering work in sustainable supply chain finance to boost businesses, reward companies contributing to a more sustainable future, and help achieve global goals for climate action.”

In addition to Taulia, an IFC spokesperson says it also works with other platforms such as Info, Demica and eFactor. The IFC invested in both Mexico’s eFactor and UK-headquartered Demica in 2018.