vAI

Based in Berlin, vAI Trade GmbH operates as a financial technology firm specializing in digital supply chain financing for small and medium-sized enterprises (SMEs).

The company was founded in 2017 by Garry Krugljakow, who has a background in both corporate finance at firms like Swiss Re and Societe Generale, and the startup world, including a stint at mobile bank N26 and founding a peer-to-peer payment company called Cookies. VAI Trade was initiated as a joint venture between Berliner Volksbank and the company builder Bridgemaker, aiming to address the liquidity challenges faced by SMEs. The venture secured a Series A funding round of $6.5 million on September 27, 2017, with Berliner Volksbank Ventures as the lead investor.

The core of vAI's business model is to provide purchase financing. It pays a company's suppliers directly and in advance, granting the client flexible repayment terms of up to 180 days. This service is designed as a streamlined, digital alternative to traditional bank loans, allowing businesses to manage their cash flow more effectively and invest in growth. The process for obtaining financing is entirely digital, involving an instant scoring and approval system based on credit scores, invoice amounts, and loan terms.

In June 2020, vAI Trade was fully integrated into the core business of its parent company, Berliner Volksbank, to further scale its operations and make its digital financing solutions more accessible to the bank's clientele. However, due to changing market conditions, specifically a significantly higher interest rate environment, Berliner Volksbank decided to cease vAI Trade's new business operations at the end of 2023. Despite reaching profitability milestones earlier that year, the demand for its specific financing model had changed.

Keywords: purchase financing, supply chain finance, B2B lending, SME financing, invoice financing, trade finance, fintech, working capital, digital lending, accounts payable financing, supplier payment, flexible payment terms, Berliner Volksbank, Garry Krugljakow, Bridgemaker, business liquidity, inventory finance, purchase order financing, alternative finance, growth capital