New Singapore-Based Fintech 129Knots Seeks to Improve Credit Access for Marine Industry

Mahesh Kumar is the firm's co-founder and Adrian Tolson its senior consultant for strategy and growth. Image Credit: 129Knots

A new fintech platform in Singapore has developed a first-of-its-kind origination to distribution (OTD) solution, targeting the bunker industry for its initial customers.

The new firm, 129Knots, has been launched with a $10 million investment led by bunker firm Sing Fuels and a $500 million deal pipeline, Mahesh Kumar, the company's co-founder and interim CEO, told Ship & Bunker.

Initially it channels credit flow seamlessly to buyers and suppliers through embedded financing and lending syndicates, leveraging blockchain technology to enhance liquidity and redefine digital finance for the marine bunker industry.

By introducing digital tokens, 129Knots will seek to resolve deep-tier financing challenges and deploy programmable money to enhance governance.

"129Knots is leveraging secured chain technology to enhance transparency, liquidity, and efficiency in the global fintech and trade ecosystem," Kumar said.

"129Knots is founded on a strong foundation of financial innovation, risk intelligence, and cutting-edge technology.

"The brand aims to go beyond traditional credit solutions by redefining how assets are originated, structured, and distributed within deep-tier industries."

Improved Access to Credit

The system offers working capital and credit solutions to shipowners and bunker suppliers.

The brand's service "effectively addresses the cashflow constraints that have long existed in the market," Kumar said.

"Many banks have been exiting the industry due to its historical challenges and the ineffective,
one-size-fits-all approach to credit.

"By combining an understanding of business risk, liquidity, technology, and innovation, 129Knots is bridging these gaps and providing a more effective and tailored solution for the marine industry."

Blockchain technology allows for the creation of decentralised ledgers to record transactions across networks of computers. The data recorded through this system is unalterable, providing a more reliable and transparent record than other systems.

"One of the consistent issues for shipping and bunkering has been how to create credit transparency that provides liquidity and also unlocks cashflow for both the buyers and sellers in marine fuel transactions," Adrian Tolson, senior consultant for strategy and growth at 129Knots, told Ship & Bunker.

"The current trading environment is not efficient, increasing risk that limits credit lines, increasing the cost of credit and hurting suppliers' and buyers' margins."

Proprietary Credit Engine

129Knots has developed a proprietary credit engine, Tribal Knots, which analyses both structured and unstructured data to offer real-time insights into behaviour and creditworthiness.

This engine is designed to minimize risk for lenders and investors in the sector by providing data-driven credit assessments.

129Knots was incubated and launched under the Singapore Economic Development Board (EDB) Corporate Venture Launchpad programme, which supports companies with venture creation and startup partnerships from Singapore.

The corporation partnered with McKinsey & Company to validate its market opportunity, which led to the creation of 129Knots with the goal of driving innovation in the real-world asset economy.

The additional support from Enterprise Singapore and IBM consulting, combined with the $10 million capital injection, will help 129Knots with its goal of scaling globally as it seeks to solve the $2.5 trillion gap between trade finance requests and approvals, which is its first market entry value proposition.

129Knots is headquartered in Singapore, a global hub for both fintech and the maritime industry.

"The name 129Knots is inspired by Singapore's 1.29° latitude, signifying its strong connection to its home country," Kumar said.

"Additionally, 129 represents a comprehensive suite of solutions from 1 to 9, ensuring a holistic approach to digital asset economy.

"Furthermore, 'Knots' is an anagram of 'Tokns', symbolizing the brand's integration of blockchain technology into its financial solutions."