TradeCard, the electronic trade system that provides an online alternative to letter of credit (L/C) transactions, has announced the closure of a US$10 million equity financing.

The announcement from one the more high profile developers of online trade finance coincides with news from TradeCard that it is writing more business this year than in previous years.

Financing growth

Warburg Pincus, the global private equity firm that first invested in TradeCard in 1999, led the latest funding round. Managing director Cary J Davis clearly believes in TradeCard's modus operandi. "TradeCard has the right fundamentals to grow into a large and successful global enterprise," he says.

The equity financing of Series C Preferred Stock closed on 17 November 2003. TradeCard says its new cash injection "will enable it to continue to fund the growth and rollout of the company into new industries and countries".

Increase in business

According to a statement issued by TradeCard on the announcement of the financial closure, it has seen the volume of transactions processed through its electronic platform increase by 225 per cent over the past twelve months.

The company also claims a fivefold increase in revenue from customer transactions since January 2002 and says its customer base now includes well-known companies such as Staples, JC Penney, Linens N' Things, Wolverine Worldwide, Hurley International, TAL Apparel, Van Heusen and Vans.

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