LC Lite co-founder Jean-Charles Devin
Last month, Singapore-based global invoice financing marketplace Incomlend announced the acquisition of LC Lite, a specialised Web3-powered trade finance marketplace, for an undisclosed amount. The deal will empower Incomlend to operate through a new fintech platform, reaching crypto and fiat investors through trade finance.
In this interview, LC Lite co-founder Jean-Charles Devin discusses the acquisition and how digital currencies can improve financial inclusion.
Excerpts:
What synergies do you envision between the two companies?
The acquisition will benefit both companies. Firstly, Incomlend gains access to a new platform that reaches crypto and fiat investors in trade financing. This will help it to expand its customer base.
Similarly, LC Lite’s Web3 focus enables Incomlend to explore the expanding Web3 technology domain and potentially add capabilities such as stablecoin transactions in the future. It will also help Incomlend expedite its Middle Eastern expansion aspirations.
Also Read: Invoice financing marketplace Incomlend acquires LC Lite to reach crypto, fiat investors
Overall, the acquisition provides Incomlend with new technology, a larger investor base, and the possibility to enter a new market.
Could you elaborate on how the new fintech platform resulting from the acquisition will facilitate trade finance, particularly in the Middle East, and what advantages it brings to the table?
The new fintech platform will revolutionise trade finance, particularly in the Middle East, by leveraging advanced technologies to streamline processes and mitigate risks. The acquisition will allow Incomlend to offer a new strategy that combines the reliability of receivables financing with the growth potential of digital assets. This could be particularly attractive to investors in the Middle Eastern region.
By incorporating LC Lite’s fintech, Incomlend will also reach a wider pool of investors, including crypto and fiat investors interested in trade finance. This can increase the liquidity in the marketplace, which will also benefit the broader UAE economy.
LC Lite’s technology also paves the way for Incomlend to support future stablecoins transactions. Stablecoins are cryptocurrencies pegged to real-world assets, reducing the price volatility often associated with other cryptocurrencies. This could make trade finance more appealing to a wider range of participants in the Middle East.
Overall, the acquisition is part of Incomlend’s plan to accelerate its growth in the Middle East. By offering a wider range of trade finance options, we will cater to the needs of a growing market.
With the integration of Web3 technology into Incomlend’s platform, how do LC Lite foresee this transforming the landscape of asset class creation within invoice financing?
Integrating Web3 technology into Incomlend’s platform will democratise asset class creation within invoice financing by introducing DeFi principles. It will increase accessibility by facilitating transactions and creating new avenues for liquidity provision and investment diversification.
Could you explain how the use of digital currencies could streamline and enhance the efficiency of invoice financing processes, both for businesses and investors?
Digital currencies can streamline and enhance the efficiency of invoice financing processes by eliminating intermediaries, reducing transaction costs, and enabling real-time settlement. Smart contracts can automate various aspects of the invoice financing process, such as invoice authenticity verification, payments and return distribution.
In what specific ways can fintech firms like Incomlend leverage digital currencies to improve financial inclusion, especially in regions where traditional banking infrastructure may be lacking?
Besides lowering transaction costs and enabling instant settlement, Web3 technology can streamline remittance services and cross-border payments in regions with high fees and limited access to banking services, consequently improving global liquidity.
As a blockchain expert, what challenges do you foresee in integrating digital currencies into invoice financing, and how do you plan to address them?
Not many businesses, particularly small ones, are familiar or comfortable with digital currencies yet. We might encounter some roadblocks on the adoption side. LC Lite will provide educational materials and clear communication about the benefits and procedures for adopting digital currencies in invoice financing. We will also collaborate with industry players to raise awareness and drive adoption.
Also Read: Incomlend raises US$20M Series A for Asia, Europe expansion
Another concern might be security. Digital currencies are subject to hacking and fraud, meaning businesses must ensure their cash is secure. We strive to implement strong cybersecurity measures and collaborate with trustworthy custodians of digital assets, prioritising safe storage and transaction mechanisms.
By addressing these issues, Incomlend and other stakeholders can pave the way for a more efficient and equitable invoice financing environment that fully realises the potential of digital currencies.
What are some potential risks associated with using digital currencies in invoice financing, and how does Incomlend mitigate these risks to ensure the security of transactions?
Besides the security risk, Incomlend must ensure that there is sufficient liquidity available to facilitate invoice financing, maintain adequate reserves of digital assets, and establish partnerships with liquidity providers to mitigate the liquidity risk. On the regulatory side, Incomlend has already implemented strong AML/KYC procedures.
—
X marks Echelon. Join us at Singapore EXPO on May 15-16 for the 10th edition of Asia’s leading tech and startup conference. Enjoy 2 days of building connections with potential investors, partners, and customers, exploring innovation, and sharing insights with 8,000+ key decision-makers of Asia’s tech ecosystem. Get your tickets here.
Want more from your Echelon experience? Be an Echelon X sponsor or exhibitor. Send enquiry here.
The post ‘Stablecoins could make trade finance more appealing’: says LC Lite co-founder appeared first on e27.