Twinco raises €165mn to scale purchase order finance

Twinco Capital has raised €165mn to expand its purchase order finance model, in a deal that points to growing investor appetite for working capital assets linked to global supply chains.

The financing includes a €15mn Series B equity round led by Dutch development bank FMO, with participation from Bankinter and existing investors including Quona Capital and Working Capital Fund. It also includes a €150mn securitisation fund led by Banco Santander to finance purchase orders.

Twinco provides funding to suppliers at the start of the production cycle, before goods are delivered and before invoices are issued. That gives the company a different position from traditional supply chain finance, which normally begins once an invoice has been approved.

The model is designed to address a common liquidity gap for suppliers in global trade. Manufacturers often need working capital to buy inputs, pay workers and begin production long before they can invoice buyers. That gap is especially difficult for suppliers in emerging markets, where access to affordable credit can be limited.

Twinco says its platform combines operational data, risk analytics and real-time supply chain information to assess supplier execution risk at purchase order stage. The company has financed more than US$1bn across thousands of transactions since launch, with no reported losses.

The securitisation element is particularly important. It suggests purchase order finance can be packaged into a structure that institutional investors are willing to back at scale.

The funding should allow Twinco to expand financing for suppliers globally while giving investors exposure to short-duration, self-liquidating trade assets.

For supply chain finance, the deal shows how the market is moving earlier in the trade cycle, from invoice approval towards production-stage liquidity.