Pressure Makes Diamonds: How IDEX Transformed Diamond Trade with Flexible Payment Terms
February 25, 25
Explore how IDEX unlocked growth with finmid's invoice financing solution
IDEX is a leading diamond-trading platform connecting diamond retailers with manufacturers and wholesalers. Based in Belgium, IDEX has local offices in the world's main diamond trading hubs. With over 7,000 professional traders using the platform, IDEX features more than 75% of the global diamond supply.
Challenge
For years, the traditional diamond trade required buyers to pay upfront. IDEX would hold these funds in escrow until the diamond was quality-checked and delivered, only then releasing the payment to the supplier. However, the industry was shifting. Buyers increasingly sought more flexible payment terms, and the industry needed to adapt to their needs.
This upfront payment model was limiting IDEX's growth, as buyers' purchasing power was restricted by their available cash. To stay competitive and drive higher transaction volumes, IDEX needed a way to offer extended payment terms without locking up its own capital.
Anish Kuriakose, Managing Director Europe, summarises their challenges: "Our buyers needed more flexibility to scale their purchases, but we also had to ensure our suppliers were paid on time. Finding a financing partner who truly understood our business was crucial."
16 countries where buyers are supported
83% buyer eligibility
Zero technical effort to launch
Solution
IDEX partnered with finmid to offer extended payment terms to buyers in the European Economic Area (EEA) through an invoice financing solution. It gave IDEX the following benefits:
• Buyers pay 30 days later: Buyers pay for a purchase 30 days after delivery instead of at the time of purchase
• Support to all EEA buyers: IDEX supports buyers across all required geographies without adding operational complexity
• IDEX maintains liquidity: IDEX relies on finmid's capital instead of their own working capital for financing
• Instant implementation: finmid's ready-to-use dashboard enabled IDEX to launch financing immediately, with zero tech effort
"finmid's ability to support diamond trade deals in our key markets in an efficient and simplified manner made them the ideal partner for us," explained Anish Kuriakose.
Results
83% of buyers on the IDEX platform based in 16 countries are eligible for the extended payment terms, giving IDEX the competitive edge in the diamond trade industry they were looking for. All launched with zero technical effort and highly simplified, buyer-friendly process.
Only five months after the launch of the partnership, IDEX has enjoyed a significant impact on buyers' behaviour. The average purchase size and frequency has increased, contributing to the growth of the platform GMV. Currently, the majority of IDEX trading volume is financed via finmid.
"IDEX is a global leader in diamond trade and adding financial services offering to our platform has further strengthened our leadership position," says Anish Kuriakose.
About IDEX
IDEX is a leading diamond-trading platform connecting diamond retailers with manufacturers and wholesalers. Based in Belgium, IDEX has local offices in the world's main diamond trading hubs. With over 7,000 professional traders using the platform, IDEX features more than 75% of the global diamond supply.
About finmid
finmid is the financial infrastructure provider to today's most popular platforms. With just a few lines of code, finmid enables any B2B software platform to offer financing to their customers at scale, driving revenue and customer retention. The finmid API allows B2B software platforms to build flexible financing solutions with best-in-class user experience. Founded in 2021, finmid is the emerging leader in European financial services infrastructure, backed by leading tech investors. The company is headquartered in Berlin, Germany. To learn more about finmid, visit finmid.com.