Dutch-Spanish fintech Twinco Capital has successfully secured €165 million in a combined funding effort to scale its innovative trade finance platform. The capital injection consists of a €15 million Series B equity round led by FMO and a landmark €150 million securitisation facility led by Banco Santander. This significant financial backing validates the company's unique model of providing liquidity to suppliers at the purchase order stage.
A Novel Approach to Trade Finance
Twinco Capital distinguishes itself by addressing a critical liquidity gap early in the production cycle, long before traditional financing becomes available. Unlike conventional supply chain finance that focuses on approved invoices, Twinco provides funding from the moment a purchase order is issued. This approach empowers suppliers in emerging markets with the working capital needed to begin manufacturing and fulfill large orders for global brands.
The company's platform advances suppliers up to 60% of their purchase order value upfront, with the remainder paid upon delivery. This is made possible through a proprietary risk intelligence model that assesses a supplier's operational capacity and execution risk. By analyzing real-time data, Twinco can underwrite performance at scale, a capability that has been crucial to its success and zero-loss record.
Landmark Securitisation and Equity Boost
The financing is structured into two key components that will fuel the company's next growth phase. The €15 million Series B round was led by FMO, the Dutch entrepreneurial development bank, and included new strategic investor Bankinter. Returning investors Quona Capital and Working Capital Fund also participated, demonstrating continued confidence in Twinco's vision and performance.
The more significant transaction is the €150 million securitisation facility from Banco Santander, the first of its kind globally dedicated to purchase order finance. This structure institutionalizes a financing stage previously considered too operationally complex and risky to package for institutional investors. Santander's involvement signals that Twinco's risk model is now considered bankable and ready for significant scaling within the financial markets.
Validating a New Asset Class
Twinco's ability to close this pioneering securitisation deal is underpinned by its flawless operational history. Since its inception in 2019, the company has financed over $1 billion in transactions across thousands of purchase orders without any credit losses. This perfect track record was instrumental in proving the model's viability and attracting institutional capital at this unprecedented scale.
Enrique Rico, Global Head of Trade & Working Capital Solutions at Banco Santander, described the transaction as "an important evolution for the industry." Co-founder and CEO Sandra Nolasco affirmed this sentiment, stating that the deal proves purchase order risk can be managed, institutionalized, and scaled. This development effectively creates a new, low-risk asset class for investors seeking exposure to emerging markets.
Strategic Growth and Market Impact
With the new capital, Twinco plans to accelerate its international expansion and enhance its technology platform. A key focus will be the continued integration of artificial intelligence into its risk analytics and credit decision-making infrastructure. These advancements will enable the company to further automate its processes, scale its reach, and deepen its underwriting capabilities globally.
The investment from FMO highlights the dual commercial and social impact of Twinco's model. Peter Bryde, a director at FMO, noted that the platform improves access to working capital for manufacturers, fostering more inclusive and resilient global trade. In a market where other supply chain finance firms have faced challenges, Twinco's zero-loss record and strong institutional backing set it apart.
Ultimately, Twinco Capital's €165 million funding round is more than a story of corporate growth; it marks the validation of purchase order finance as a scalable and institutional asset class. By successfully de-risking the earliest stage of the supply chain, the company is positioned to redefine trade finance for suppliers worldwide. The strong backing from established financial players like Santander and FMO underscores the industry's readiness for this critical innovation.