The startup operates in the decentralised finance (DeFi) space.
Polytrade said it intends to use the funds to grow its product suite, concentrate on marketing, and enter the Latin American and European markets.
The company said it would focus on bringing the fully integrated trade platform in the next two quarters.
Founded by Piyush Gupta, Polytrade aims to streamline the supply chain by providing real-time data, reducing errors, delays, and disputes, while also improving visibility and transparency.
The startup was earlier backed by Polygon cofounder Sandeep Nailwal, QuickSwap cofounder Sameep Singhania, and other Web3 ecosystem investors.
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“We understand where the problems lie as well as the real-world impact Web3 can bring. I also firmly believe that with Polytrade, we will make trade finance one of the most preferred asset classes for investors given its relative safety coupled with robust yields,” Gupta said in a statement.The company said it was currently working on various aspects of the trade finance process across areas such as underwriting, tokenisation, collections, and secondary trading of assets.
“Polytrade is soon launching a ZK-ID on-chain identification system, which will improve the creditworthiness of suppliers and buyers. This method will allow for quick and secure identity verification, lowering the risk of fraudulent transactions,” it added.
The company also said that it had raised more than $11 million in DeFi liquidity and traditional credit facilities, “making it by far the largest corpus of any trade finance platform in the DeFi world.”
CoinSwitch cofounder and CEO Ashish Singhal said: “We believe that Polytrade’s Web3 protocol will strengthen the real-world asset tokenisation narrative. Their innovative approach to addressing the pain points of MSMEs (micro, small and medium enterprises) with global footprint and focus on bringing more liquidity to trade finance markets has the potential to revolutionise the global trade ecosystem.”