Global Trade Flows are continuously increasing across geographies, thus creating a large gap between trade flows and financing facilities. The global market for trade finance was estimated at $18- trillion in 2019 according to the Bank for International Settlements. As of 2019, the global trade finance gap which reflects the inability of financial institutions to provide trade finance is estimated at around $1.6 trillion. About $692 billion of this is in Asia (including India and China). This provides a large opportunity for non-bank intermediaries to cater to the shortfall.
Trade finance is a critical element of global trade. 80-90% of world’s trade relies on Trade Finance - World Trade Organization.
Spacenet will be reshaping completely as Fintech Company addressing the complete lifecycles of Trade finance.
Today's Trade Scenario
Few Organizations control comodity trades.
Metal and Energy:
Major sectors like Pharma, Infra, IT Hardware and many more are untouched.
The world’s top commodities traders have pocketed nearly $250bn over the last decade, making the individuals and families that control the largely privately-owned sector big beneficiaries of the rise of China and other emerging countries. The net income of the largest trading houses since 2003 surpasses that of the combination of mighty Wall Street banks Goldman Sachs, JPMorgan Chase and Morgan Stanley or that of an industrial giant like General Electric. They made more money than Toyota, Volkswagen, Ford Motor, BMW and Renault combined. (Source: Financial Times).
Largest Trade Finance companies in India
Adani Enterprises with Willmar, MMTC, STC, PEC
Vitol Group 300 bn, Glencore, Trafigura 200 bn, Mercuria 120 bn, Cargill, Koch industries 100 bn, ADM 80 bn, Gunvor 60 bn, Bunge 50 bn, Louis Dreyfus 43 billion.