Twinco Capital Closes €165M to Institutionalize PO Finance

The big picture: Dutch-Spanish fintech Twinco Capital has closed €165M in combined funding, comprising a €15M Series B equity round and a landmark €150M securitisation facility. This funding aims to institutionalize purchase order finance, a segment previously considered too early and complex for securitization. Twinco Capital, co-founded and led by women, has processed over $1B in transactions since 2019 with zero losses. Twinco Capital is dual-headquartered in Amsterdam and Madrid.

Why it matters:

• New Asset Class: The €150M securitisation facility, led by Banco Santander, is the first globally structured around purchase order finance, signaling a significant evolution for the trade finance industry.
• Supplier Empowerment: Twinco’s model provides crucial upfront capital to suppliers in emerging markets, addressing a long-standing gap where traditional supply chain finance only begins at the invoice stage.
• Market Validation: Santander’s backing validates Twinco’s proprietary risk intelligence and zero-loss track record, demonstrating that purchase order risk can be managed, institutionalized, and scaled.

How it works:

• Early Financing: Twinco intervenes at the purchase order stage, advancing up to 60% of the order value upfront and the remainder upon delivery, unlike traditional finance that waits for invoices.
• Proprietary Risk Assessment: The company uses proprietary risk intelligence and real-time operational data to underwrite supplier performance risk in emerging markets, assessing delivery likelihood.
• Proven Track Record: Since its 2016 launch, Twinco has financed over $1B across thousands of transactions with zero credit losses, a key factor enabling the securitisation facility.

The catch: The supply chain finance sector has been marked by high-profile failures like Greensill Capital and Stenn, highlighting inherent risks. While Twinco’s zero-loss record is a strong differentiator, scaling a new asset class like purchase order securitisation will test its risk model against broader market volatility and potential competition. The long-term success hinges on whether institutional capital beyond Santander will follow suit, transforming a niche into a mainstream financial product.