By Supantha Mukherjee

STOCKHOLM – SAP has announced that it will buy a majority of the U.S. Fintech firm Taulia. This is in line with its goal to grow its supply-chain financing and working capital loan business.

Taulia partners with financial institutions in order to enable suppliers to get early payments for their goods or services. The market is experiencing a significant increase due to disruptions to supply chains and the pandemic.

SAP provides supply-chain finance through Ariba, but Taulia is being acquired by the company to improve its growth rate for own products.

Although SAP didn’t disclose the price of the deal, Chief Executive Officer Christian Klein stated that it was less than $1 billion. Taulia has raised over $200 million through Questmark Partner, Trinity Ventures and Lakestar.

The fintech firm had also secured https://www.reuters.com/article/us-britain-greensill-taulia/greensill-tech-partner-taulia-secures-6-billion-funding-from-jpm-led-consortium-idUSKBN2B22GU a credit facility worth more than $6 billion from JPMorgan (NYSE:) last year after its partner for supply-chain financing, Greensill Capital, filed for insolvency.

SAP confirmed that JPMorgan’s relationship with Taulia has not changed and that JPMorgan will operate its strategic alliance while also maintaining its equity share.

Taulia has more than two million users, and generates over $500 billion per year in transactions volume. With 87% customers using SAP, Taulia also helps them to connect with their suppliers.

SAP’s former CEO Léo Apotheker also serves as an independent director at Taulia, and both companies have joint customers such as Airbus, Nissan (OTC:) and AstraZeneca (NASDAQ:).

SAP said that the cloud business had boosted its first quarter fourth-quarter results. According to SAP, 2022 cloud revenue will be between 11.55 and 11.85 trillion euros (12.95 billion dollars) – an increase of 9.42 billion from 2021.

($1 = 0.8916 euros)