Online trade finance provider, TradeCard, Inc, has announced that it has raised an additional US$25.5 million of equity capital, making a total of US$70 million of equity capital raised so far. Private equity investment firm and TradeCard's major investor, Warburg Pincus, led and guaranteed the September completion of the round. Several other existing shareholders also participated in the financing.

Commenting on the new financing, Cary Davis, managing director of Warburg Pincus, suggested TradeCard's offering is now distinctly different from competing online trade finance services. "Unlike other companies in the online payments marketplace, TradeCard is not just talking about these capabilities; they are completing transactions today," he said.

Over 600 users

TradeCard says it provides an alternative to traditional paper-based trade settlement methods, including letters of credit (L/Cs). The web-based system enables buyers and sellers to initiate, conduct and settle transactions online through a secure network. TradeCard says it now has over 600 active users, including Radio Shack, Wolverine World Wide, SK Global and International Playthings.

Notable achievements claimed by TradeCard since its April 2000 launch include partnerships with over a dozen banks such as Comerica, Fleet, Bank of East Asia and Bank SinoPac as well as a network of over 40 logistics companies including Fritz & Co., Jardine, and Dimerco.

Other partnerships have been forged with export credit insurer, Coface, insurance broker, Marsh and money movement provider, Thomas Cook. TradeCard has also teamed up with MasterCard International with the aim of providing businesses-to-business payment capabilities for small as well as large dollar purchases.

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