Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Amdocs.
With a technologically advanced and competitive corporate sector, almost every company looks forward to transforming its business communication and IT structure. Cloud-migrated, digitized, and automated companies leveraging innovative technologies tend to have better operational efficiency and productivity.
Enterprises can find several platforms to access innovative solutions, including 5G, communication tools, digitization, cloud migration, and automation solutions. One such platform is Amdocs. It is a software and services provider that enables customers’ digital and network transformation via innovative solutions, expertise, and intelligent operations.
Let’s dig in for more details about Amdocs, from its founders, mission, and startup story to investments, products, competitors, and more.
Amdocs is a multinational corporation specializing in innovative software and services for media, communication, financial service providers, and digital enterprises. The company unlocks customers’ innovative potential and empowers them to transform their boldest ideas into reality by accelerating their migration to the cloud, digitalizing and automating their operations, differentiating in the 5G era, and providing end users with the next-generation communication and media experiences.
Amdocs has a global presence with 53 offices located in the United States, Israel, India, Switzerland, the United Kingdom, Ireland, and other areas. It serves billions of consumers worldwide through its relationships with 600+ content creators and 350+ communications & media providers across 85+ countries.
Amdocs – Founders and Team
Avinoam Naor, Boaz Dotan, and Morris Kahn are the founders of Amdocs.
Avinoam Naor
Avinoam Naor earned a bachelor’s degree in Computer Science at Technion. He was one of the Amdocs founders and was its President and CEO from 1995 to 2002.
Avinoam Naor – Co-founder, Amdocs
Boaz Dotan
Boaz Dotan graduated from Tel Aviv University. He is the co-founder of Amdocs, and in 1982, he was appointed the company’s first President and CEO. Currently, he is a board member at Retalix Ltd and a partner at AfterDox.
Boaz Dotan – Co-founder, Amdocs
Morris Kahn
Morris Kahn is an Israeli entrepreneur. In addition to Amdocs, he founded Golden Pages Israel, the Aurec Group, Coral World, and a few more companies.
Morris Kahn – Co-founder, Amdocs
Shuky Sheffer is the CEO, and Tamar Rapaport-Dagin is the CFO & COO of Amdocs. Presently, it works with a global team of over 31,000 employees.
Amdocs – Startup Story
In 1982, Amdocs was founded in Israel as an offshoot of Golden Pages- the phone directory company owned by the Aurec Group, which Morris Kahn headed. Boaz Dotan was appointed as the company’s first President and CEO. Morris, along with others at Golden Pages, developed a billing software program for phone directory companies. He and Boaz incorporated Aurec Information & Directory Systems for marketing the product.
50 percent ownership of Aurec Information & Directory Systems was acquired by Southwestern Bell Corporation in 1985, and its name was changed to Amdocs. Within two years, the Aurec Group sold Amdocs’ remaining holdings for approximately $1 billion.
Amdocs diversify for the first time between 1990 and 1995 by expanding first into the wireline telephony arena and then the mobile space. In June 1988, it went public on the New York Stock Exchange and moved to the NASDAQ Global Select Market in 2014.
In 1999, Amdocs entered the managed services space and entered many different markets by acquiring multiple companies.
Amdocs – Mission and Vision
Amdocs aims to enrich lives and progress society with creativity and technology.
Amdocs – Business Model
5G, Automation, B2B Portfolio, Cloud, Digital, Media, and Financial Services form Amdocs’s core business, which has been expanded through several acquisitions and partnerships. The company’s technology, design-led approach, and expertise help service providers accelerate their journey to the cloud, deploy and manage existing and next-generation networks, improve their entertainment offerings, and service customers across multiple channels.
Moreover, Amdocs sometimes engages third-party vendors and system integrators to provide complimentary products and services, including hardware and software.
Amdocs provides multiple products and services, and these are:
Amdocs Customer Experience Suite
Amdocs Digital Brands Suite
Catalog Management
Amdocs Subscription Marketplace
Commerce & Care
IoT
Monetization
Amdocs Network
Network & Service Automation
Network Deployment & Optimization
OTT & Digital Subscription
Amdocs Microservices Management Platform
Amdocs Consulting Services
Amdocs Low-Code Experience Platform
AmdocsContent Mangement Services
Amdocs Operations Services
Amdocs Delivery Services
Amdocs Mobile Network Services
Amdocs Systems Integration Services
Amdocs Quality Engineering Services
Amdocs – Challenged Faced
In early 2000, a counterintelligence investigation was conducted by federal agencies to determine whether Israel was using Amdocs to eavesdrop on U.S. government communications. But no evidence was found in the inquiry.
Moreover, as per Spy Cables, in 2009, the South African State Security Agency suspected Amdocs of being used by Mossad to spy on South African citizens by tapping their mobile phones to collect information.
Amdocs – Funding and Investments
Amdocs has undertaken 1 funding round, i.e., Post-IP Equity Round, on January 1, 2023. Moreover, the company has made the following 10 investments:
Amdocs created a subsidiary named ‘Vector Creations Limited’ in 2016.
You’re touched by Amdocs when…
Amdocs – Patents and Trademarks
Amdocs’ intellectual property includes 3 registered patents, primarily categorized into the ‘Computing; Calculating’ class.
Amdocs – Growth
Amdocs’ estimated annual revenue in 2022 is $4.3 billion ($101,736 per employee). In January 2022, its valuation stood at $9.4 billion. Moreover, the monthly website visit grew by -4.8%, with 548,432 visits.
Amdocs – Partners
Amdocs has 175 partners, of which 159 are technology partners, and 16 are channel partners. Some of them are:
Hewlett Packard
Amazon Web Service
Google Cloud
Microsoft Azure
Creatio
Amdocs eSIM
CommBox
Perx
PayFast
TechSee
Continual
vHive
NCTC
Zixi
Amdocs – Awards and Achievements
Amdocs received many prestigious awards:
TWO Coveted Leading Lights 2021 awards for Outstanding Digital Enablement Vendor and Innovative Hybrid Networking Strategy.
Amdocs + Airtel won TM Forum’s Excellence Award in the ‘Customer Experience and Trust’ category.
The Carbon Disclosure Project recognized Amdocs as a sustainable leader.
Amdocs Media’s MarketONE platform won Media Excellent Award in the ‘Payment/Crypto/Commerce category.’
Amdocs is a multinational corporation specializing in innovative software and services for media, communication, financial service providers, and digital enterprises.
Who are the founders of Amdocs?
Avinoam Naor, Boaz Dotan, and Morris Kahn founded Amdocs in 1982.
The financial services industry has been transformed by the advent of financial technology (fintech) companies that leverage cutting-edge technology to revolutionize traditional financial systems. These companies offer innovative solutions that streamline processes, enhance financial inclusion, and optimize operations.
One such company that is a prominent player in this industry is C2FO. It is an on-demand working capital platform that provides fast, flexible, and equitable access to low-cost capital to businesses worldwide.
In this article, let’s explore the story of C2FO, its business and revenue model, its funding details, and more.
C2FO, which stands for “Collaborative Cash Flow Optimization,” is a financial technology company that works towards creating working capital for clients and managing their accounts payable and receivable on demand. It helps companies gain control over their cash flows whenever required. The platform is the first of its kind in the world.
Why Buyers Love C2FO
C2FO – Industry
C2FO belongs to the financial technology industry as it attempts to deal with the issues of the traditional financial market through key technological interventions. Moving at an impeccable pace, the US fintech market is expected to grow at a rate of 8.6% until 2024. Within the fintech industry, the digital payment sector is growing the fastest. The total transaction value in the digital payments segment is projected to reach US$2,041 billion in 2023. The financial technology industry in the US constitutes 57% of the global fintech market.
With more attention and popularity paid to the nuances of the industry like convenience, simplicity, security, transparency, and customization, people are more attracted to the various fintech tools that have been launched in the market in the last decade. With the entire world gearing up for a sea of technological change, the fintech industry is only starting to grow at full throttle in the years to come.
Alexander C. Kemper – Founder, Chairman of the Board and CEO, C2FO
Alexander (Sandy) Kemper holds a Bachelor’s degree in History from Northwestern University. He founded C2FO in 2008, which was then named Pollenware. Currently, he serves as the Chairman of the Board and CEO of C2FO. He is also the Chairman of the Board of The Collectors Fund.
Prior to founding C2FO, Kemper also founded eScout.com, which is now known as Perfect Commerce, and served as its Chairman and CEO from 2000-2006. Apart from his role at C2FO, Kemper is an active angel and venture investor, holding reputed positions on the boards of UMB Financial, UMB Bank, NIC, and Dwolla.
Since C2FO started gaining momentum in their business, Kemper has hired an extremely talented pool of professionals into the executive board of the company who now collectively run the startup to garner better growth prospects.
The leadership team of C2FO includes:
Sanjay Gupta, President, and Chief Operating Officer
Dan Karas, Chief Credit Officer
Raffaele Sadun, Chief Financial Officer
Leslie Olsen, Chief Marketing Officer
Ragui Selwanes, Chief Product and Technology Officer
Colin Sharp, Chief Sales Officer
Bri Simoneau, Chief Accounting Officer
Krissy Young, Chief People Officer
Anne Steinhaus, Head of Product – Platform
David Greer, General Counsel and Corporate Secretary
Aditya Devurkar, Head of Data Science and Operations
Alex Donnelly, Chief Operating Officer, Americas
Chris Atkins, President of Capital Finance and Capital Markets
C2FO – Startup Story
C2FO began its journey by curating an on-demand working capital platform that aligned with accounts receivable and accounts payable for many companies. The primary idea behind the startup was the realization of the importance of maintaining cash flow in businesses and the absence of one such facilitator in the industry. Soon, they created an online space where large corporate buyers could negotiate prices with suppliers for quicker payments in return for feasible discounts. Hence, they were able to help the suppliers receive early payments on their invoices at discounted rates depending on their needs and abilities. Today, they have become the world’s largest platform for working capital, operating in more than 180 countries.
C2FO – Mission and Vision
The company’s mission is to equip all businesses, big and small, with enough capital for their growth. They hope to serve as the right fit in an industry where companies generally struggle to find and access capital at the right place and at the right time.
C2FO – Name and Logo
C2FO Logo
The name “C2FO” stands for “Collaborative Cash Flow Optimization.” The name reflects the company’s focus on collaboration and cash flow optimization, which is at the core of its services.
C2FO – Business and Revenue Model
C2FO operates as a business-to-business (B2B) marketplace that provides a unique approach to optimizing cash flow for businesses without extending actual credit. The company addresses what is known as the “liquidity paradox,” which involves careful negotiation between areas of surplus and deficit funds to facilitate early payment to suppliers in exchange for a discount.
In terms of its revenue model, C2FO primarily earns fees from both buyers and suppliers who use its platform. Buyers pay a fee based on the early payment discount offered to suppliers, and suppliers pay a fee based on the early payment they receive. These fees are typically proportional to the transaction amount, the creditworthiness of the buyer, and the discount rate offered.
C2FO also adopts a collaborative market approach wherein both buyers and suppliers benefit from the deals made. By creating a win-win situation, C2FO aims to strengthen relationships within the supply chain ecosystem while facilitating early payment and optimizing cash flow for both parties.
C2FO’s platform can help clients optimize their cash flow and potentially generate additional profit. The company’s revenue primarily comes from the fees charged for facilitating early payment transactions.
The Federal Open Market Committee voted to boost the overnight borrowing rate by half a percentage point, taking it to a targeted range between 4.25% and 4.5%. Officials have indicated that they expect to maintain higher interest rates through this year, with no reductions anticipated until 2024. As a result, the cost of borrowing for clients may also increase.
Furthermore, supply disruptions and rising inflation are increasing the amount of working capital that firms need, resulting in higher costs and increased risk pressure. In light of these challenges, C2FO may need to curate programs like Dynamic Supplier Finance to reduce the impact and help clients navigate through these market conditions effectively.
C2FO – Funding and Investors
C2FO has received funding from various world-famous venture capitalists and investors. In 2010, C2FO got its first funding from Union Square Ventures. In 2012, it received $9.1 million in funding from the same party, which was used to expand its workspace and create a risk-free profit market. In 2015, it raised $40 million in a round of equity funding led by Temasek Holdings. The fund was used to build upon the existing market domain of the company.
In another round of funding led by Allianz X and Mubadala Investment Company, along with the existing investors from C2FO, the firm completed a funding round worth $100 million in 2018. So as to improve access to working capital as far as the companies are concerned, C2FO went for another round of funding, which was led by SoftBank Vision Fund, through which the company completed the round worth $200 million.
C2FO has only made one acquisition so far. In October 2019, C2FO acquired Priority Vendor, which is one of the largest early payment platforms in India. It was C2FO’s initial step to scale up its global presence. The acquisition also ensured that now C2FO will have more than 200 corporate clients like Acer, Costco Wholesale, Flex, Kellogg’s, Mondelez, Pfizer, and Office Depot.
C2FO – Growth
C2FO had made its own space in the market by 2010. Soon, it had passed $1 billion in payments by the end of 2011. In 2015, with a vision to gear up for growth at the global level, it opened its London office.
In 2015 itself, the company handled more than 8 million transactions a week. The company proudly flaunts that it has generated $210 billion in working capital since its first transaction in 2010. Today, the company serves over 2 million businesses with more than $10.5 trillion in annual sales. Over the years, it has expanded its offices to Europe, China, India, and Australia.
C2FO – Competitors
Some of the competitors of C2FO include:
Taulia
PrimeRevenue
CashFlo
Fundbox
BlueVine
C2FO – Future Plans
In 2023, C2FO aims to expand its product suite to enhance its ability to facilitate working capital for its clients. The firm also aims to address the issues of liquidity in a more nuanced manner so as to propel business further in a positive manner by ensuring that there is better cash flow on a day-to-day basis. C2FO recently got permission to develop a TReDS platform in India. In 2023, C2FO will leverage its understanding of supplier constraints to build upon the TReDS, which will inadvertently benefit various MSMEs that work with C2FO.
FAQs
What does C2FO do?
C2FO is a financial technology company that works towards creating working capital for clients and managing their accounts payable and receivable on demand.
Who is the founder of C2FO?
Alexander C. Kemper is the founder of C2FO. He serves as the Chairman of the Board and CEO of C2FO.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by the organization it is based on.
One cannot ignore the fact that money doesn’t impact us. Banking and financial services are our everyday affairs. Today, companies that offer financial services have a broad category that can include many different types of businesses. Generally speaking, a business can be categorized as a financial services institution if it deals with finances, investment banking, and money management.
With its headquarters in New York City, Morgan Stanley is American multinational financial services and investment management company. In this article, we will learn about Morgan Stanley, its founders, its startup story, its business model, its investments, and more.
Morgan Stanley is a financial services company that provides advice, capital origination, trading, management, and distribution for organizations, governments, and individuals through its affiliates and subsidiaries. The firm is divided into three main business sectors: Securities issued by institutions, wealth management, and investment management.
Morgan Stanley raises money to assist organizations, institutions, and people around the world in achieving their financial objectives. As a global financial services provider, the company has a presence in more than 40 countries, serving clients like governments, institutions, corporations, and individuals. Through proper dedication and continuous delivery of first-class service, Morgan Stanley has remained a consistent industry leader over many decades.
Morgan Stanley – Industry
The largest and most liquid financial markets are found in the United States. The financial services industry in the US has grown at an exponential rate in the last few years. Along with this, global economic growth is also being influenced by the US finance and insurance markets. Furthermore, the global financial services industry is going to increase at a CAGR of 6% from 2020 to 2025, increasing its value from $20.49 trillion to $28.53 trillion.
Morgan Stanley was founded in 1935 by Henry Sturgis Morgan and Harold Stanley.
Henry Sturgis Morgan
Henry Sturgis Morgan – Co-founder, Morgan Stanley
Henry Sturgis Morgan was born on October 24, 1900, in London, UK. He joined J.P. Morgan & Co. in 1923, the same year he received his Harvard degree, and worked there from 1928 to 1935 as a partner. He and Harold Stanley co-founded Morgan Stanley in 1935 as the Glass-Steagall Act forced the division of investment banking from commercial banking.
Henry was married to Catherine Frances Lovering Adams, who was the daughter of the U.S. Secretary of the Navy, Charles Francis Adams III.
Henry served as the Chairman and President of The Morgan Library & Museum. Along with this, he also served as a board member of J.P. Morgan & Co., General Electric, and Pullman Company. In addition, Morgan served as an OSS agent and a commander in the Naval Reserve during World War II.
Henry Sturgis Morgan passed away on February 8, 1982, at the Columbia-Presbyterian Medical Center, New York.
Harold Stanley
Harold Stanley – Co-founder, Morgan Stanley
Harold Stanley was born in Great Barrington, Massachusetts, in 1885. He got his degree from Yale University in 1908. Harold Stanley’s career began in 1916 when he was appointed vice-president of the Guaranty Trust Company of New York’s bond division. Eventually, he spun off the department into the Guaranty Company, a separate and subsidiary securities company, where he collaborated with J.P. Morgan, Jr. Dwight Morrow, who was appointed the US Ambassador to Mexico, was replaced by Morgan’s invitation for Stanley to join his company as a partner in 1927.
Apart from all of this, Harold Stanley was also a member of the Yale Club, the National Golf Club, the Racquet and Tennis Club, and the Links Club of New York. He served as the director of numerous organizations, including Shell Caribbean Petroleum Corporation.
Harold Stanley did a lot of philanthropic activities. He oversaw the New York fundraising effort in 1940 to raise $1.5 million (or $29,013,000 in 2021) for the United States Commission for the Care of European Children, a non-profit that assisted young war refugees.
James P. Gorman
James P. Gorman – CEO and Chairman, Morgan Stanley
James P. Gorman is a prominent business executive who currently serves as the CEO and Chairman of Morgan Stanley, a leading global financial services firm. He holds a Bachelor of Arts and Bachelor of Laws degree from the University of Melbourne and an MBA from Columbia Business School.
Prior to his current role, Gorman worked at McKinsey & Company and Merrill Lynch. He joined Morgan Stanley in 2006 as the President and Chief Operating Officer of the Global Wealth Management Group (GWMG).
In January 2010, Gorman was appointed as the CEO of Morgan Stanley, and in 2012, he assumed the additional role of Chairman, where he continues to provide leadership and strategic direction to the company.
Morgan Stanley – Startup Story
In 1935, the original story of Morgan Stanley began with J.P. Morgan & Co, which served as its foundation. It was when the Glass-Steagall Act was passed, firms could no longer combine their commercial and investment banking operations under a single holding company. The Glass-Steagall Legislation, a part of the United States Banking Act of 1933 describes that commercial and investment banking companies should run separately. Due to this, J.P Morgan & Co. decided to go with the commercial banking business. Henry S. Morgan and Harold Stanley, among others, left J.P. Morgan & Co. as a result, joining other Drexel partners to launch Morgan Stanley. This is when the new story for Morgan Stanley began.
It was on September 16, 1935, when the company officially began operations at 2 Wall Street in New York City, right next door to J.P. Morgan. For the United States Steel Corporation, which served as the lead underwriter, the company distributed 1938 US$100 million in debentures. In addition, the company earned the distinction of serving as the lead syndicate in the 1939 U.S. rail financing. To facilitate greater activity in its securities business, the company underwent a new strategy for reorganization in 1941.
After many years around 1997, the company merged with Dean Witter Discover & Co., the spun-off financial services business of Sears Roebuck. Within a year, the company’s name was changed to “Morgan Stanley Dean Witter & Co.” To prevent hostility between the two businesses, the original name was chosen as a combination of the two predecessor businesses. For reasons unknown, “Dean Witter” was removed entirely in 2001, and the company’s name changed to “Morgan Stanley”.
The combined company started expanding its international operations around 1999. John J. Mack, who was the company’s president and Chief Operating Officer, established a joint venture in India with a Mumbai-based financial services group, JM Financial.
It is reported that Morgan Stanley was the largest tenant of the World Trade Center complex. It had offices spread across 35 floors of buildings 1, 2, and 5 of the complex. Sadly during 9/11, the firm lost over 13 employees. However, the other 2500+ employees were vacated safely.
The company made acquisitions in the 2000s that allowed them to widen its financial operations. As part of a larger initiative to promote investment in initiatives that support economic, social, and environmental sustainability, Morgan Stanley announced in November 2013 that it would invest around $1 billion to help enhance affordable housing.
Through many years, the company has invariably delivered top-notch financial services. Today, the company claims of having offices in more than 40 countries.
Morgan Stanley – Mission and Vision
Morgan Stanley’s mission statement is, “Morgan Stanley is dedicated to providing first-class service to our clients, in a way that reflects our commitment to creating a more sustainable future and fostering stronger communities around the world. In each line of business, we strive to demonstrate our belief in the power of transformative thinking, innovative strategies and leading-edge solutions—and in the ability of capital to work for the benefit of all society.”
They have core values that they follow passionately: do the right thing, put clients first, lead with exceptional ideas, commit to diversity and inclusion, and give back. These values serve as the foundation for everything Morgan Stanley stands for.
Morgan Stanley – Name, Tagline, and Logo
Morgan Stanley Logo
Morgan Stanley was known as “Morgan Stanley Dean Witter & Co” in 1997, as it was merged with the company Dean Witter Discover & Co. However, the company’s name was again changed to Morgan Stanley in 2001. The reason for changing the name was never revealed.
Morgan Stanley – Business Model
Morgan Stanley is a financial and investment banking company that offers services such as sales & trading, investment banking, investment management, prime brokerage, research, institutional consulting, wealth management, and private wealth management. Moreover, the company’s business segments are divided into three segments:
Wealth Management
Stockbroking, brokerage, and investment advisory services, market-making activities in fixed-income securities, financial and wealth planning services, annuity and insurance products, credit and other lending products, banking, and retirement plan service are offered by the global wealth management group. Under this segment, the company offers financial and wealth planning services to individuals and small to medium-sized businesses and institutions.
Institutions Securities
This segment by Morgan Stanley offers investment banking services like capital raising including underwriting of debt, and equity, and financial advisory services like mergers and acquisitions advice, reorganizations, real estate and project finance, and corporate lending activities and credit products. The clients include corporations, governments, financial institutions, and high-to-ultra high-net-worth clients. Institutional securities at Morgan Stanley is the most thriving industry.
Investment Management
Services like traditional asset management, including equity, fixed income, liquidity, alternatives and managed futures products, and merchant banking and real estate investing are provided by this business segment.
Morgan Stanley – Revenue Model
One of the most profitable business segments of Morgan Stanley is institutional securities. Other than this, the investment banking division of the company makes money by charging fees for advisory services like mergers and acquisitions and restructurings. In both mergers and acquisitions and initial public offerings (IPOs), the firm ranks highly on a global scale. In 2022, the company made a revenue of $53.7 billion.
Morgan Stanley – Challenges Faced
Just like any bank, Morgan Stanley faced challenges during the 2008 financial crisis. The firm lost more than 80% of its market value between 2007 and 2008, with its share price sliding by 57% in just four days. Despite these difficulties, Morgan Stanley has since recovered and remains a major player in the global financial services sector.
Morgan Stanley – Mergers and Acquisitions
Morgan Stanley has made many acquisitions since its inception. The most recent acquisitions are:
Date
Acquiree name
Amount
December 5, 2022
blooom
–
January 19, 2022
Fusion Connect
–
October 8, 2020
Eaton Vance Management
$7 billion
February 20, 2020
E-TRADE
$13 billion
March 3, 2019
Microlife Corp
$302 million
February 15, 2019
KSH Infra
$49 million
February 11, 2019
Shareworks
–
October 2, 2017
Mesa West Capital
–
October 9, 2015
CoAdvantage
–
September 12, 2014
NEWSTAR
$8.1 million
Morgan Stanley – Investments
Morgan Stanley has made various investments throughout the years. The most recent investments are:
Date
Organization Name
Funding Round
Money Raised
March 2, 2023
Delhivery
Post-IPO Secondary
₹9.5 billion
Feb 2, 2023
Syngene
Post-IPO Equity
₹11.9 billion
Jan 9, 2023
Athulya Senior Care
Private Equity Round
₹770 million
Jan 5, 2023
Netskope
Convertible Note
$401 million
Jan 4, 2023
HYNN Technologies
Series D
–
Dec 19, 2022
CyberCube
Series C
$50 million
Nov 20, 2022
OPTT Health
Pre-Seed Round
$1.2 million
Oct 21, 2022
Emler Swim School
Private Equity Round
–
Sep 29, 2022
Intersect Power
Debt Financing
$2.4 billion
Sep 27, 2022
Vital Thin Film Materials
Series B
CN¥4.5 billion
Sep 6, 2022
Clip
Credit Facility
$50 million
Besides this, there are a few more diversity-based investments made by the company, the details are:
Date
Organization Name
Funding Round
Money Raised
Aug 11, 2022
Stimulus
Seed Round
$2.5 million
Jul 21, 2022
TomoCredit
Series B
$22 million
Jun 2, 2022
Hourwork
Series A
$2.5 million
Mar 28, 2022
Hourwork
Series A
$10 million
Mar 24, 2022
Lillii RNB
Seed Round
$3.7 million
Mar 23, 2022
Stimulus
Seed Round
–
Jan 27, 2022
NVISIONx
Seed Round
$4.6 million
Dec 23, 2021
MedTrans Go
Seed Round
$1.5 million
Nov 17, 2021
Cohesion
Series A
$15 million
Aug 1, 2021
Presagen
Seed Round
$2.2 million
Morgan Stanley – Growth
Morgan Stanley has come a long way and evolved through many decades. The company was a pioneer in assisting blue-chip clients to access public markets to finance expansion and innovation throughout the 1950s and 1960s. It was in 1962, the firm claims to have developed the first practical computer model for financial analysis, ushering in a new era for the discipline. Later in the 1990s, the company went overseas by expanding its operations in countries like India, China, South Africa, and Russia.
After the financial crisis during 2007-2008, the company struggled and faced quite challenges. In 2008, the company changed its status by becoming a bank holding company. In addition, the firm also made a deal with Mitsubishi UFJ Financial Group (Japan). The group agrees to invest $9 billion for a 21% stake in the company. This gave both companies to expand on a global scale.
At present, the company is one of the top financial and investment banking companies in the USA and of, course internationally as well.
Morgan Stanley has received the following awards and recognition:
Morgan Stanley was ranked among the top innovative workplaces in 2020 and 2021 by Fast Company.
Morgan Stanley was recognized by the Times which ranked the company fifth among the top 20 large companies.
Great Place to Work Institute, Japan based on the opinions of the employees and the corporate culture, ranked Morgan Stanley as the second-best company to work for in that country in 2007.
In 2004, Working Mother named Morgan Stanley as one of the 100 Best Companies for Working Mothers.
Morgan Stanley also achieved the Best Places to Work for LGBT Equality in 2016.
Euromoney magazine recognized Morgan Stanley with the Best Global Investment Bank Award in 2015.
Morgan Stanley was named the Bank of the Year by IFR in 2020 and the best global investment bank by Euromoney in 2021.
With a revenue of $53.7 billion, Morgan Stanley is undoubtedly one of the leading global investment banks, employing more than 80,000 employees. The company plans to be more optimistic in terms of the stock market. It further aims to come up with a better business strategy in the areas of wealth management and investment banking. Its long-term goal is to amass $10 trillion in client assets.
Morgan Stanley – FAQs
Who started Morgan Stanley?
Morgan Stanley was founded in 1935 by Henry Sturgis Morgan and Harold Stanley.
Where is the headquarters of Morgan Stanley?
Morgan Stanley’s headquarters are in New York, US.
Who are Morgan Stanley’s top competitors?
The top competitors of Morgan Stanley are Goldman Sach, Citibank, Wells Fargo, Raymond James, Bank of America, Credit Suisse, and Merrill Lynch.
Who is the CEO of Morgan Stanley?
James P. Gorman currently serves as the CEO and Chairman of Morgan Stanley.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by the organization it is based on.
A financial system is very crucial for any country, as it regulates all monetary things. The financial services industry, without a doubt, is one of the biggest industries that exist today.
If we look back at history, it was the Gramm-Leach-Bliley Act, which allowed various types of companies operating in the U.S. financial services industry at the time to merge, that was passed in the late 1990s, and it contributed to the term “financial services” becoming more common in the country.
One such financial services company is Wells Fargo. It is an American multinational financial services company, that has its headquarters in San Francisco, California. The firm is also one of the “Big Four Banks” of the US, along with JPMorgan Chase, Bank of America, and Citigroup.
In this article, you will learn about Wells Fargo, one of the most prominent financial institutions in the United States, its visionary founders, its innovative business model, notable investments, and much more.
With nearly $1.9 trillion in assets, Wells Fargo & Company is a diversified, locally focused financial services provider.
Established in 1852, the company offers banking, investment, and mortgage services as well as consumer and business financing through more than 7,300 locations, 12,000 ATMs, the internet (wellsfargo.com), and mobile banking. The company also has offices in more than 40 nations and territories to support its clients who conduct business in the global economy.
Wells Fargo has various subsidiaries, including:
Wells Fargo Advisors
Wells Fargo Bank, N.A.
Wells Fargo Rail
Wells Fargo Securities
Wachovia
First Union
CoreStates Financial
In 1998, the original Wells Fargo & Company and the Minneapolis-based Norwest Corporation merged to form the current Wells Fargo. Although Norwest appeared to have survived, the combined company adopted the more recognizable Wells Fargo name and relocated to Wells Fargo’s headquarters in San Francisco.
Wells Fargo – Industry
The global financial services industry was valued at nearly $23,328.73 billion in 2021. In addition, it is anticipated that the value of this industry will grow from $23,328.73 billion in 2021 to $33,313.50 billion in 2026 at a rate of 7.4%. It is then expected to grow at a CAGR of 6.3% to reach $45,149.00 billion in 2031.
The sudden rise of digitization has led to the emergence of financial service software as well. Thus, there is also a demand for workforce optimization solutions to drive the growth of the financial service software market.
Wells Fargo & Company was established in 1852 by Henry Wells and William G. Fargo, who together with John Butterfield founded American Express, to offer banking services to California then.
Henry Wells
Henry Wells – Founder, Wells Fargo
Henry Wells was born in Thetford, Vermont, in 1805. His father, Shipley Wells, was a Presbyterian minister at what is now the First Presbyterian Church of Seneca Falls, New York. His parents had moved to central New York State as part of the Yankee westward migration out of New England.
Henry went to school in Fayette and worked on a farm when he was younger. He began working as an apprentice in 1822 for the Palmyra, New York-based tanners, and shoemakers Jessup & Palmer.
Before starting in the express industry, Henry Wells worked as a freight agent. By transporting mail for less than the government rate, his companies, which were the forerunners of American Express and Wells Fargo, competed with the United States Postal Service. In the field of higher learning, Wells founded Wells College in Aurora, New York.
Henry Wells passed away in Glasgow, Scotland, two days before his 73rd birthday.
William George Fargo
William George Fargo – Founder, Wells Fargo
William G. Fargo was a pioneer American expressman who also served as Buffalo’s 27th mayor from 1862 to 1866, all of which occurred during the American Civil War. When Fargo was 13 years old, he stopped attending school and began delivering mail for his native New York village of Pompey. He started working as a freight agent for the Auburn and Syracuse Railroad in Auburn in 1841, acting as an express messenger between Albany and Buffalo. In 1852, he co-founded Wells Fargo & Company with his partner, Henry Wells.
William G. Fargo passed away on August 3, 1881. He is the inspiration for Fargo Avenue in Buffalo, the Fargo Quadrangle at the University at Buffalo, and Fargo, North Dakota.
Charles W. Scharf
Charles W. Scharf – CEO and President, Wells Fargo
Charles W. Scharf is the CEO and President at Wells Fargo. He is also a member of the Board of Directors of Wells Fargo & Company. Prior to this, he held leadership positions at prominent organizations. Charles served as the CEO of the Bank of New York Mellon from 2017 to 2019 and was also the chairman of its board. He has also served as the CEO and director of Visa Inc. from 2012 to 2016.
Charles has a B.A. from Johns Hopkins University and an MBA from New York University.
Wells Fargo – Startup Story
The two founders’ passion led them to establish Wells Fargo. It is documented that it was during the technological revolution when Henry Wells and William G. Fargo started their professional lives. An era when more interconnected communities and economies were made possible by trains, canals, and stagecoaches. As a result, there was an increase in demand for trustworthy locations to access money while traveling, as well as safe ways to send payments.
Using this opportunity, both the founders established a network of offices from California to New York and all over the world, using their practical experience delivering money and valuables by steamboat, railroad, pony ride, and stagecoach. When the economy was changing rapidly, their network offered customers consistency and support. Through a network of agents, it also started offering fundamental financial services like money orders and fund transfers.
By the end of the California Gold Rush (1855), the company was a leading express and banking company in the West, shipping large quantities of gold as well as supplies and mail. Wells Fargo had 6,000 locations connected to its network by 1910, and by 1918, the company had more than 10,000 communities nationwide.
Customers wary of transacting with distant partners used Wells Fargo because they knew they could rely on their neighborhood Wells Fargo agent to represent them.
During the 1980s and 1990s, Wells Fargo made a series of acquisitions and introduced many subsidiaries. In May 1995, Wells Fargo became the first significant US financial services company to offer Internet banking.
Much has changed since the inception of Wells Fargo. Through the ages and every generation, the firm has kept up its tradition of assisting clients in moving forward by offering cutting-edge financial services.
The firm even has a dedicated museum, the Wells Fargo Museum, in the same place where it first started its business in 1852, in San Francisco. It has all of its artifacts from the past and information on different people who have helped shape what Wells Fargo is today. One can visit the museum between 10 AM to 5 PM for free from Monday to Friday.
Wells Fargo – Mission and Vision
Wells Fargo always had the goal of serving their customers properly by being a reliable financial service provider to all their finance needs.
The mission of Wells Fargo is, “helping customers succeed financially”
Wells Fargo – Name, Tagline, and Logo
Wells Fargo Logo
Wells Fargo’s name comes from the two founders’ surnames; Henry Wells and William G. Fargo.
The company goes by the tagline, “It all begins with you”.
Wells Fargo – Business Model
Wells Fargo offers a broad range of banking and financial products and services to corporates, governments, or institutions. The firm also provides a scope of banking, insurance, investment banking, mortgage banking, retail banking, brokerage, and consumer and commercial finance service through its subsidiaries.
The business of Wells Fargo can be divided into three segments:
Wealth & Investment Management
Under this, the company offers a comprehensive range of personalized and dedicated wealth management, investment management, retirement strategies, and other services to high-net-worth families and individuals.
Wholesale Banking
Wholesale banking provides all the financial solutions to any business operating globally such as commercial banking, commercial real estate, business banking, government, and institutional banking, etc.
Community Banking
As the name suggests, community banking offers fully devoted and diversified financial products and services to consumers and medium-sized and small-sized businesses that include; student and small lending businesses, credit and debit cards, savings, etc.
The company also has operations in several foreign countries, such as Canada, Latin America, Europe, Asia Pacific, and Africa, where it offers local relationship managers to businesses seeking assistance with their international operations. It has offices in Toronto, Hong Kong, London, Dubai, Singapore, and Tokyo. With more than 20,000 employees, back offices are located in India and the Philippines.
To pinpoint the business strategy of Wells Fargo, it has given a platform to its customers where they can easily make use of its services.
Customers can use Wells Fargo’s services either through an online banking service or its mobile app. They can use these services to move money, schedule recurring payments, manage account information, and apply for financial products without even speaking to anyone from the Wells Fargo staff.
What It’s Like to Work for Wells Fargo in India
Wells Fargo – Revenue Model
Talking about the revenue model of Wells Fargo, the firm generates most of its money by offering a range of private banking and commercial banking services to consumers, with the majority of its income coming from the charging of fees and commissions.
In 2022, the company’s revenue stood at $73.8 billion.
Wells Fargo – Mergers and Acquisitions
Wells Fargo has made several acquisitions to date. The details of some of the latest acquisitions are listed below:
Date
Acquiree Name
Amount
Apr 27, 2012
Merlin Securities
—
May 26, 2011
Castle Pines Capital
—
Sep 29, 1999
Ragen Mackenzie
$240 million
In addition, the firm has also merged with some companies.
The banking and express divisions of Wells Fargo were split off in 1905, and the company’s bank merged with the Nevada National Bank to form the Wells Fargo Nevada National Bank.
The Union Trust Company and Wells Fargo Nevada merged in 1923 to form the Wells Fargo Bank & Union Trust Company.
The name Wells Fargo & Union Trust was shortened to Wells Fargo Bank in 1954. To create the Wells Fargo Bank American Trust Company, it merged with American Trust Company four years later. In 1962, it went back to being known as Wells Fargo Bank.
Wells Fargo – Investments
The details of Wells Fargo investments are as follows:
Date
Organization Name
Funding Round
Money Raised
Mar 15, 2023
Leeward Renewable Energy, LLC (LRE)
Debt Financing
$185 million
Feb 15, 2023
Dreamscape
Debt Financing
–
Feb 9, 2023
Soil Health Institute
Grant
$300K
Jan 18, 2023
Lightsource bp
Debt Financing
$267 million
Jan 6, 2023
Realty Income Corporation
Post-IPO-Debt
$1 billion
Nov 29, 2022
Greenwood Bank
Series B
$45 million
Nov 16, 2022
HomeZada
Grant
$250K
Nov 14, 2022
BB Energy
Debt Financing
$580 million
Oct 25, 2022
Bilt Rewards
Series B
$150 million
Oct 14, 2022
BWX Technologies
Post-IPO-Debt
$250 million
The company has also made 16 diversity investments. Here are the most recent ones:
Date
Organization Name
Funding Round
Money Raised
Feb 25, 2022
Miami Foundation
Grant
$20 million
Nov 7, 2021
H2O.ai
Series E
$100 million
Mar 25, 2021
Greenwood Bank
Series A
$40 million
Oct 29, 2019
Accion Serving San Diego
Grant
$300k
Aug 27, 2019
Wisconsin Women’s Business Initiative Corp(WWBIC )
Grant
$500K
Aug 20, 2019
H2O.ai
Series D
$72.5 million
Jul 11, 2019
Fyde
Seed Round
$2 million
Dec 12, 2018
AtScale
Series D
$50 million
Wells Fargo – Philanthropic and CSR Activities
Wells Fargo has also established itself when it comes to serving communities and societies through its CSR activities. It offers solutions such as diversity and inclusion, community giving, economic empowerment, environmental and social impact, and so on.
The company announced a $1 million donation to the American Red Cross on March 2, 2022, to help refugees from the Russian invasion of Ukraine.
Not only this but, the Wells Fargo Foundation made the announcement in April 2022 that it would donate $210 million to advance racial equity in homeownership. The Wealth Opportunities Restored through Homeownership (WORTH) grants, which will be given out with $60 million of the donation, will last until 2025. In order to help minority homeowners, an additional $150 million will be invested in lowering mortgage rates and lowering refinancing costs.
Wells Fargo – Awards and Achievements
Wells Fargo was recognized as the Global Best in Service for US Dollar cash management for financial institutions by Euromoney magazine.
Wells Fargo was awarded as the Best Private Bank Globally for its philanthropy services by the Financial Times Group.
Greater Des Moines Partnership awarded Wells Fargo an Inclusion Award Winner 2021 for supporting diversity, equity, and inclusion.
Even after facing significant challenges and scrutiny in recent years, Wells Fargo is still one of the big four banks in the US. The company has maintained itself and shown potential growth over many years. Furthermore, the company has a strong franchise base with which it can become a leaner organization and continue to preserve its status in the market today. Overall, Wells Fargo’s future plans involve maintaining its position as a leading financial institution by making improvements and investments to drive growth.
Wells Fargo – FAQs
When was Wells Fargo founded?
Wells Fargo was founded in 1852.
Who started Wells Fargo?
Wells Fargo & Company was established in 1852 by Henry Wells and William G. Fargo.
Who is the CEO of Wells Fargo?
Charles W. Scharf is the CEO of Wells Fargo.
Where is Wells Fargo’s headquarters?
Wells Fargo’s headquarters are in San Francisco, California.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Chime.
Businesses in the banking and financial sectors are increasingly focusing on mobile devices as a means of increasing consumer engagement and streamlining processes. The extensive use of mobile devices and the quick acceptance of mobile banking as a practical substitute for the expensive cost of completing transactions in physical branches is a big appeal for financial executives. As a result, the banking industry has been actively incorporating mobility into its client interaction strategy.
Mobile banking is the concept of doing monetary operations via a smartphone. Some financial organizations, particularly banks, provide this service. Customers and users of mobile banking can complete a variety of transactions, which may differ depending on the financial institution.
Chime is a company that creates mobile financial and banking platforms to provide banking services on the move. Users may avoid costs, save money, and lead better financial lives thanks to the company’s platform, which sets a predefined amount of funds away in savings following a payment and generates income from transaction fees paid by the merchants.
Chime Financial, Inc. is a financial technology business based in the United States that offers fee-free mobile banking services through The Bancorp Bank or Stride Bank, Visa debit or credit cards are provided to N.A. account holders, who also have access to secure online banking platform through the business’ website or smartphone apps.
Chime is not a bank, and its customers do not have any banking relationships. Chime may and does deactivate user accounts with no warning; it is not obligated to give the client a cause for the termination or even have one. Customers cannot file a complaint with banking regulators to get their deposits back since they might not be paid out right away.
Chime doesn’t have any physical branches, doesn’t impose overdraft or monthly payments, and doesn’t ask for an initial deposit or a minimum amount to start a free bank account. At present the accounts are only accessible to persons with private accounts; all money received must be in the name of the personal account holder.
The following are some features of the app:
A thorough dashboard snapshot of their expenditures and account balance.
Automatic savings account contributions.
Early payments via direct deposits.
Zero overdraft charges
There are approximately 60,000 ATMs in the US, yet none charge fees for withdrawals.
Instantaneous payments to other Chime users.
Chime – Industry
The term “financial services” refers to the monetary services provided by the banking sector, which comprises a wide range of companies that balance a budget, which includes credit unions, financial institutions, individual asset managers, card companies, insurance providers, accounting firms, consumer finance firms, brokerage firms, investment funds, and some govt-sponsored entities. Several other businesses that depend on credit and loans to function are supported by financial services. Despite mixed findings, the majority of estimates place the financial services industry at 20–25% of the global GDP.
With a compound annual growth rate (CAGR) of 9.7%, the worldwide financial services market increased from $23,319.52 billion in 2021 to $25,588.3 billion in 2022. Economic sanctions on many nations, a rise in commodity prices, and disruptions in the supply chain as a result of the conflict between these two nations have all had an impact on several markets throughout the world. At a CAGR of 6.9%, the financial services industry is anticipated to reach $33,358.77 billion in 2026.
Chime was founded by Chris Britt and Ryan King in the year 2013.
Chris Britt & Ryan King | Founders of Chime
Chris Britt
Chime is a San Francisco-based firm that Chris Britt co-founded in 2013 as a no-fee mobile banking app and debit card. Chris attended Tulane University to earn his degree. At Visa, Inc., he held the position of senior product leader. Before establishing Chime, he previously worked for a company called Green Dot Corporation.
Ryan King
Ryan is Chime’s Co-Founder and Cheif Technological Officer. Ryan was previously the VP of Engineering at Plaxo, an early professional social networking pioneer bought by Comcast Interactive Media. Ryan formerly previously served at Microsoft and Liberate Technologies. Ryan has bachelor’s and master’s degrees in computer science and engineering from UCLA and Stanford University, respectively.
Some other team members include :
Dennis Yu – Chief of Staff
Jeff Trudeau – Chief Information Security Officer
Russ Branzell – CEO/President
Adam Burde – Sr. IT Systems Engineer
Amine Asmerom – VP, Controller
Arkadiy Tetelman – Head of Application & Infrastructure Security
Beth Steinberg – Vice President, People & Talent
Jay Parekh – VP, Business Development & Partnerships
Ori Dugary – Vice President of Operations, Member Experience
Chime – Startup Story
Regardless of its importance, the covid outbreak and quarantine had an impact on every aspect of society as it turned our existence upside down. In spite of the fact that it is a huge aid, most individuals became hesitant to visit bank offices. Despite the fact that banks were open during the lockdown, people started switching to other options. In the field of online transactions, the majority of banks have noticed a noticeable improvement of about 40%. With the help of various banking and UPI applications, people were increasingly using the internet to exchange money and pay their bills. Many banks have been inspired to adopt this shift by the US-based banking company Chime.
Chris Britt and Ryan King founded Chime in 2013, and the company is based in San Francisco. The formal debut was on the Dr. Phil Show on April 15, 2014. Chime stands out since it was founded in the era of smartphones. As a result, they were able to launch an app right away for the convenience of the user. It is simple for clients to use for monitoring their financial standings. They can manage their credit cards and get their questions answered by customer service representatives.
The environment that Chime has developed for its customers is actually establishing new standards for banking services. The company’s absence of branches is quite intriguing and sets them apart from its opponents. They provide Visa debit cards and access to an online banking platform through chime.com for account holders. The clients have the option of doing their business using an Android or iOS mobile application.
Chime – Name, Logo, and Tagline
Chime Logo
Chime’s tagline says “It’s your money. It’s your life. Chime in.”
Chime – Mission, and Vision Statement
Chime’s mission statement says, “We created Chime because we believe everyone deserves financial peace of mind. We’re building a new online bank account that helps members get ahead by making managing money easy. It’s your money. It’s your life. Chime in.”
Chime – Business Model
By charging its customers’ interchange fees on transactions they complete through the Visa payment gateway, Chime generates revenue. ATM fees and interest on cash are other revenue sources for Chime.
Exchange charges – The interchange fee model is where Chimes makes the most money. This stream covers the costs that Chime’s affiliate retailers incur while using its network to process transactions. The business is responsible for paying a processing charge to Chime each time a Chime user swipes their Visa card.
Chime receives a portion of the 1.5% cost that merchants pay to Visa, which is far less than the processing fees charged by other legitimate credit card providers like Amex. Chime generates a sizable amount of revenue from the roughly 40 transactions every month that its millions of customers perform.
Chime leverages its merchant revenues to give customers a better experience by doing elimination of account fees, ATM fees, and other expenses connected to traditional banking.
Interest on money – Chime users may use the app to invest in savings accounts and other financial instruments.
Users’ money is transferred into a high-yield savings account through the automated savings option. Chime makes short-term loans of this money to banks and other financial organizations. Chime earns interest on the cash as payment for the loan at an interbank rate that is far higher than the 0.5% APY that users receive on cash balances in their accounts.
ATM fees – VPA and MoneyPass are two of Chime’s ATM networks. Consumer pays $2.50 for each ATM withdrawal if they use an ATM outside of this 38,000-location network.
Additionally, ATM providers may impose additional fees at their discretion. Up to 20% of Chimes’ earnings come from ATM revenue.
Chime – Funding, and Investors
Date
Round
Amount
Investors
Aug 13, 2021
Series G
$750M
Sequoia Capital Global Equities
Sep 18, 2020
Series F
$533.8M
–
Dec 5, 2019
Series E
$700M
DST Global
Mar 5, 2019
Series D
$200M
DST Global
May 31, 2018
Series C
$70M
Menlo Ventures
Sep 27, 2017
Series B
$18M
Cathay Innovation
May 19, 2016
Series A
$9M
Aspect Ventures
Nov 5, 2014
Series A
$8M
Crosslink Capital
Aug 30, 2013
Seed Round
$3.8M
–
Chime – Acquisitions
Acquiree Name
About Acquiree
Date
Amount
Charlie Finance Co.
Charlie Finance is a financial services company that helps ordinary Americans worry less about money and get out of debt faster
Aug 16, 2021
–
Pinch
Pinch makes it easy to build its clients’ credit history just by paying their rent.
Sep 17, 2018
–
Chime – Competitors
Chime is a market leader in fintech, but it faces stiff competition from other companies that operate in the same industry.
The company’s main rivals as a digital bank include Dave, Marcus, Ally Bank, and Varo Bank. Chime relies on its partner banks, Stride Bank and The Bancorp Bank, as each of them does have a charter. Chime may provide FDIC-insured deposits to its clients on all balances and assets kept with the new bank, just like its rivals.
Chime – Future Plans
Chime’s bank accounts are guaranteed up to the typical maximum deposit amount of $250,000. The Bancorp Bank or Central National Bank, which changed its name to Stride Bank, N.A. in 2019, is their main collaborator. The accounts on Chime are also managed by Stride Bank or Bancorp Bank. Chime does not seek to push credit on its clients, in contrast to conventional banks that encourage customers to acquire overdraft assurance and advances. Additionally, they are not required to maintain a base balance, incur monthly costs, or pay overdraft fees. The business provides customers with discounts or money back at the time of purchase through its money-back rewards program.
Chime has become one of the most popular and effective digital banking apps in the United States over the years. The organization has so far raised 2.3 billion dollars of funding and is currently valued at $25 billion (2021). It reported an estimated profit of close to $200 million in 2019. In order to maintain its leadership position among challenger banks, Chime also plans to expand into Visa and trading services.
According to Chime’s CEO, the firm bases its products on four fundamental aspects of sound monetary planning: spending, saving, managing credit, and investing. In order to help people with little to no credit manage their finances better, Chime will continue to create programs that offer tools and information.
FAQs
Who is the CEO of Chime?
Chris Britt is the CEO of Chime.
Is Chime owned by Amazon?
No, Amazon doesn’t own Chime.
How much is Chime valued?
Chime has raised a total of $2.3 Billion and is valued at $25 Billion.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.
Consumer durable financing demand is expanding across India as the country’s urban population grows, brand awareness grows, and disposable income rises. Because it was the only secure and available choice for customers during the lockdown, internet options reported increased usage of financial services.
The Indian banking system is undergoing an unprecedented shift. Digital lending strategies are getting popular, putting banks’ conventional retail lending procedures on alert.
Even though the transition is pandemic-driven, the technology revolution that swept the financial world in the pre-Covid eras was on the verge of launching digital lending platforms. However, the virus made it grow at an incredible rate.
In 2018, Sachin Bansal and Ankit Agarwal formed a financial services firm based in India called Navi. The headquarters of the company are in Bangalore. Digital personal loans, home loans, healthcare insurance, mutual funds, and microloans are all available through Navi.
The business today has millions of users, more than 3 billion apps downloaded, 825 thousand or more investors, 36 lakh or more satisfied customers, and 105 thousand or more health insurance policies sold to date.
Navi is working on a digital lending platform that will make finance-based services more economical, simple, and relevant to everyone. Navi is a digital lending software that offers you loans up to Rs. 20 lakh in an entirely cashless approach. The company’s platform enables customers to access financial services at a low cost through customer-friendly and innovation-driven enterprises in the financial services, banking, and insurance spaces.
IT and consulting services, non-banking financial services such as loans and microfinance, insurance products, and mutual funds are among Navi’s integrated activities. The Securities and Exchange Board of India has also granted the business a stockbroking and investment advisory license, according to the regulatory filing (SEBI).
The duration of the loans offered by Navi ranges from 3 to 36 months. Navi Finserv also offers 2-wheeler, residential, local business, and educational loans in addition to consumer loans.
Navi works in three simple steps:
Select the loan and EMI amount.
Complete KYC using Aadhar and PAN.
Instantly, money is transferred to your bank account.
Navi – Industry
During the projected period, the digital lending market is estimated to grow at a CAGR of around 11.9% (2022–2026). Because of the COVID-19 outbreak, SMEs all around the world struggled to raise funds to keep their operations running during the crisis period.
An important driver that is driving the industry’s expansion is shifting customer expectations and behavior as a result of the numerous advantages provided by the digitalization of banking and financial services. Consumers come from various backgrounds and will need the loan for several reasons, including personal loans, SME financing, and house loans, among many others.
The lending environment has evolved dramatically over the years because of the fast implementation of digitalization in the BFSI business. In several areas around the world, conventional lending is still practiced. The advantages given by digital solution providers, on the other hand, are progressively paving the way for business adoption of digital lending solutions and services.
Furthermore, various technical improvements, such as the widespread usage of smartphones, have resulted in a rise in the acceptance of digital banking across a variety of end-user industries. Artificial intelligence, machine learning and cloud computing are also beneficial to financial institutions and banks because they can analyze large volumes of client data. This data and information are then compared to produce findings on the appropriate assistance that clients desire, thereby assisting in the development of customer relationships.
Navi – Founders and Team
Navi was founded by Ankit Agarwal and Sachin Bansal in 2018.
Sachin Bansal – Co-founder of Navi
Ankit Agarwal
Navi’s Chief Financial Officer is Ankit Agarwal. Ankit Agarwal studied computer science at IIT Delhi and then obtained an MBA from Ahmedabad’s Indian Institute of Management. Agarwal was previously the VP at Deutsche Bank. He also served as VP and Director at Bank of America before founding Navi with Sachin Bansal.
Sachin Bansal
Sachin Bansal joined Techspan after finishing his degree and worked there for a few weeks. As a senior software engineer, he joined Amazon.com India in 2006. He quit Amazon in 2007 and co-founded Flipkart with Binny Bansal, his business partner. Bansal had served as the chairman of Flipkart for over 10 years before leaving the company in 2018. The ex-founder of Flipkart then founded Navi in the same year.
Navi Technologies chief Sachin Bansal announced that the company has appointed Vidit Aatrey as its independent director. The co-founder and CEO of Meesho, Aatrey’s appointment has been effective since April 9th, which is still subject to the completion of some formalities. Abhijit Bose, Shripad Nadkarni, and Usha Narayanan are the three other directors named by the company; Bose is the Head of India of WhatsApp and the founder of Ezetap; and Nadkarni has worked with reputed organizations previously like Coca-Cola, Johnson & Johnson, and more. and Narayanan has previous experiences with Lovelock & Lewes Chartered Accountants LLP, PricewaterhouseCoopers, and more.
Navi – Startup Story
After leaving Flipkart in December 2018, Sachin Bansal and an IIT-Delhi alumnus created BACQ Acquisitions Private Limited, which was eventually rebranded ad Navi Technologies Private Limited.
Soon after leaving Flipkart, the co-founder and chairman changed course to continue his mission to make his long-term dream happen. Sachin Bansal had his heart set on another great thing, even as his Flipkart dream came to an end. Bansal’s insatiable pursuit of something new can be observed in the fact that he has only spent a few months since leaving Flipkart without investing in or acquiring a firm, mostly for his current venture, Navi Technologies.
Despite the lockdown, Navi’s founder and CEO invested INR 3,000 crore in his firm and built a personal lending app. Flipkart, like Navi, which has acquired a series of businesses in the last 2 years, was built on a foundation of mergers.
Navi – Name, Logo, and Tagline
Navi stands for “new” which depicts what the company stands for.
The new India is becoming more and more accepting when it comes to the digitalization of financial services and banking, which is what Navi does.
Navi’s tagline says, “Get Instant Loan using Navi.”
Navi’s mission statement says, “Our mission is to provide financial products and services that are simple, affordable and accessible by building a customer-centric and technology-first organization.”
Navi – Business Model and Revenue Model
When it comes to Navi Technologies Business Model, the company has emphasized technology-enabled financial and banking services, as well as the seamless integration of the neo banking model with traditional banking services and assurance. To gain domain understanding, Sachin Bansal has teamed up with fellow IIT Delhi alumni Ankit Agarwal, who is a banker by profession.
“Building a universal bank is a reflection of our commitment to provide financial services to those who need them most. Our vision is to go beyond what hitherto has been broadly defined as ‘financial inclusion and provide access to formal financial services using technology that people can use intuitively and easily.” – Sachin Bansal.
It’s worth mentioning that Navi only operated for 3 to 4 months in FY19. Navi’s NBFC business provided over 72% of this income in the form of interest income and related fees. The remaining 8% and 20% of revenue came from the insurance industry and advisory services, respectively.
Navi – Funding, and Investors
Navi Technologies has raised funding in over 6 rounds the latest round of funding was raised on May 12, 2022.
Date
Round
Amount
Lead Investors
May 12, 2022
Debt Financing Round
$ 72.62 million
–
Apr 13, 2020
Private Equity Round
$26.51 million
Gaja Capital
Apr 2, 2020
Funding Round
$398.99 million
Sachin Bansal
Jan 10, 2020
Venture Round
$30 million
International Finance Corporation
Nov 14, 2019
Funding Round
$117.97 million
Sachin Bansal
Jan 31, 2019
Angel Round
$7 million
Sachin Bansal
Navi Technologies, a four-year-old financial business helmed by Sachin Bansal, is the latest Indian fintech startup to submit a DRHP with market regulator SEBI. The loan-providing fintech business plans to raise INR 3,350 crore in the public market.
According to the DRHP obtained, the IPO offer would be made only through a new share issued. This means that no firm shareholders will sell their shares during the Initial Public Offering.
While reading the DRHP, the fact that Navi Technologies’ promoter, Sachin Bansal, has a massive 97.39% interest in the business was found. Because the IPO offer does not contain an OFS component, he will keep 97.39% of the stock after the Public Offering. This implies he owns more of his firm than the well-known Nayar family, which runs Nykaa.
Navi – Investments
Navi Technologies has invested in 6 companies.
Date
Organization Name
Round
Amount
Feb 10, 2022
Infra.Market
Debt Financing
$30 million
Jul 24, 2019
Kissht
Debt Financing
$6.06 million
Jul 17, 2019
boAt
Debt Financing
$2.42 million
Jul 3, 2019
Bounce
Debt Financing
$1.2 million
Apr 24, 2019
KrazyBee
Series B
$12.10 million
Mar 29, 2019
Bounce
Debt Financing
$4 million
Navi – Acquisitions
Navi Technologies has acquired 2 businesses to date.
Acquiree Name
About Acquiree
Date
Amount
DHFL General Insurance
DHFL General Insurance. is a Third Party Car Insurance company.
Jan 2, 2020
–
MavenHive
MavenHive is a Bangalore based tech consulting firm.
Dec 26, 2019
–
Navi – Growth and Revenue
Sachin Bansal, who has also been the founder of Flipkart, after getting an offer of $16 billion from Walmart, decided to sell his 5.5% stake in the company for Rs 7650 crore. However, this time with Navi, which he founded with a vision to build a financial services behemoth over the next two decades, he remained steadfast, which is the primary reason behind the growth of Navi Technologies. The company is already in the segments of asset management, insurance, and lending and is further looking to expand its horizons. The founder currently owns 97.39% of the company’s stakes, as per the reports dated April 3, 2022.
The Navi company has launched a metaverse-based fund of funds scheme, Navi Metaverse ETF Fund of Fund, with the help of its mutual fund arm. Anmol Como Broking sponsors the Fund of Fund scheme of Navi, which will be managed by Navi Mutual Fund. The Fund of Fund scheme-owned assets will be managed by Navi AMC Limited.
According to the company’s current documents filed, Sachin Bansal-led Navi Technologies became profitable in the fiscal year 2021, achieving a combined profit of Rs 71 crore. In the previous fiscal year, the firm had lost Rs 8 crore.
On August 18, 2023, Navi reported revenue of Rs. 438.7 crore for the first quarter of FY24 and the previous quarter (Q4 FY23). However, there was a 2.3X increase when compared to the first quarter of the previous fiscal year (Q1 FY23).
Navi Technologies Revenue Breakdown
Navi Technologies Revenue Verticals
FY21
FY20
Interest Income
INR 451 cr
INR 143.02 cr
Other Operating Revenue
INR 235.6 cr
INR 40.3 cr
Insurance Business Revenue
INR 92.4 cr
INR 15.7 cr
Navi’s sales increased by over 143% as the firm’s operations developed and the usage of banking and financial services via internet channels soared during the pandemic. The income was Rs 137 crore, up from Rs 56 crore the previous year, 2020.
The company’s total earnings increased by 251% from Rs 199 crore in FY20 to Rs 779 crore in FY21, demonstrating the company’s expansion.
The expenditures of Navi have increased by 217% year on year, from Rs 219 crore to Rs 673.8 crore (YoY).
Navi Technologies Expenses Breakdown
Navi Technologies Expenses Verticals
FY21
FY20
Employee Benefit Expenses
INR 169.7 cr
INR 61.6 cr
Advertising and Promotional Expenses
INR 38.7 cr
INR 1 cr
Other Operating and Admin Expenses
INR 190 cr
INR 95.58 cr
Impairment Loss on Financial Assets
INR 187.2 cr
INR 23.8 cr
Finance Cost
INR 88.2 cr
INR 37.02 cr
Navi Technologies Financials
Navi Technologies Financial Breakdown
FY21
FY20
Operating Revenue
INR 779 cr
INR 199 cr
Total Expenses
INR 673.8 cr
INR 219 cr
Profit/Loss
Profit of INR 71.2 cr
Loss of INR 8.07 cr
EBITDA Margin
30.15%
22.02%
The EBITDA of Navi improved positively. On a unit level, Navi Technologies has been reported to have spent Rs 0.86 to earn a single rupee of revenue during FY21.
Navi Financials – FY19-FY21
Bansal had broken down the lending business, stating that the company’s microfinance loan book was worth Rs 1,500 crore and its non-microfinance loan book was worth Rs 600 crore. According to Bansal, the company was disbursing loans of Rs 350 crore each month.
“We are now comparing ourselves with banks and NBFCs. That is why we describe ourselves as a financial services company that happens to be good in technology. I don’t like the word fintech, lot of fintechs don’t have (lend from) their own books,” Bansal had said.
Navi – Products and Services
Navi App
Navi app was released in 2020, and according to latest news the Navi Mutual Fund has effectively empowered 1 million Indians on October, 2023 by making investing money on the Navi app simple and reasonable.
Navi – Layoffs
According to sources, Navi just let go of 200 employees across the divisions of technology, products, and analytics on July 13, 2023. Employees had no prior knowledge of layoffs, according to sources. Meanwhile, a recruiter reported that the upper management had downsizing plans and that HR policies were in place to make sure that not much severance was needed to be paid.
Company spokeperson said, “Navi conducts performance appraisals twice a year, which results in expected departures from the company. However, Navi continues to have multiple open positions and the company is expected to continue hiring many new employees this year, including a batch of 150+ campus hires who will be joining in August.”
Navi Technologies, owned by Sachin Bansal, is allegedly aiming to file a draft red herring prospectus (DRHP) with SEBI for a 4,000 crore initial public offering (IPO) shortly.
According to sources, the firm plans to make its initial public offering (IPO) in June of this year. The IPO will be conducted purely through fresh share issuance, with no component of an OFS (offer for sale). Bansal owns almost 97% of the firm and will not dilute his holdings in the IPO.
The IPO is intended to aid Navi’s expansion in personal loans, microfinancing, and mutual funds, in addition to its mutual fund operations. Navi is also expected to utilize the funds to fund its expansion goals, which include creating a loan book of 20,000 crores in the next two years and obtaining roughly 15,000 crores in debt from the public markets over the same time frame.
Navi became a public company in February 2022, in preparation for an initial public offering. The fintech firm has enlisted the aid of ICICI Securities, BofA Securities, and Axis Capital to manage its public offering.
FAQs
Who founded Navi?
Sachin Bansal and Ankit Agarwal founded Navi.
When was Navi founded?
Navi was founded by Ankit Agarwal and Sachin Bansal in 2018.
Is Navi NBFC registered?
Navi Finserv (Navi) is an RBI-registered non-banking financial company (NBFC).
How does Navi operate?
IT and consulting services, non-banking financial services such as loans and microfinance, insurance products, and mutual funds are among Navi’s integrated activities. The Securities and Exchange Board of India has also granted the business a stockbroking and investment advisory license, according to the regulatory filing (SEBI).
Who are Navi founders?
The Navi startup founders are Sachin Bansal and Ankit Agarwal.
For a business owner, the invoices handle could be very hectic, especially when your company’s invoice is unpaid. According to the records and facts discovered by independent consulting firm Plum, over 11% of total invoices allocated by small or average-sized enterprises are paid late, which comes to a round of $1 trillion per year. By the records, the average small business in the US has over $84,000 unpaid invoices. The payment for an invoice usually takes 21-30 days and as many small businesses who have a limited cash budget of 27 days only, can be pushed by the felon customers at red alert.
Therefore, the Debt Collection Agencies are meant to accumulate the unpaid accounts through their training and resources, after the disruption of many businesses. These agencies are very promising and have a success rate of 20%.
Managing and devoting time towards the delinquent accounts could be a pretty waste of time and also, could cost a huge expense. Debt collection agencies are hired for these purposes and to handle your company’s invoices thoroughly. It saves you valuable time as well as collects incredible debts.
However, finding the right debt collection agency for your business could be very confusing and hectic. That’s why we present to you the top 10 debt collection agencies, that would help you pick wisely and smartly.
The debt recovery agency or startups chases the businesses to pay back what they owe. In simple words, they try to retrieve the unpaid money from the debtors.
When we talk about businesses and industries, debt payments can be quite complex. A creditor can’t go to every debtor and collect the debt from them. So, the businesses resort to the method of debt recovery. In this method, they hire a third party to recover debt on their behalf.
With the rise in debts, there is also a rise in the need for debt recovery. Thus, more and more debt recovery startups are entering the marketplace.
What are the Basic Needs to Start Debt a Recovery Startup?
The first step to start anything is to plan. Every successful startup not only begins with an idea but also good planning and execution of it.
The startup then acquires the basics that they need to enter the market. These include computers with working internet.
Since it is a debt recovery startup, it does pay more attention to the legal aspect. They then work on getting the license and insurance plans.
The most important thing a debt recovery startup needs is a good team. A team that knows their work and has good communication and management skills. So, this startup needs the best masterminds in the team.
How do Debt Recovery Startups Work?
The debt recovery startups work on commissions. These startups connect with businesses and collect debts on their behalf. They fix a certain percentage as commission for the amount that they collect.
The percentage of commissions depends upon how difficult a debt recovery is. They charge a smaller amount for the new and easy debts. In this way, the amount increases for the complex recovery cases.
The debt recovery companies used to hire agents to do the work. Now, the time has changed. The new-age startups used modern automatic technologies for recovery. They don’t hire special agents, rather resort to the use of the software.
Such software helps businesses to recover from debt in an automated mode. It sends reminder messages to the customers or clients about their debts.
The startups now design their software in a way that it can work on an auto-pilot mode. They offer negotiation deals, counteroffers, dispute management. They even make customized monthly plans according to customer needs.
These startups provide a solution to every debt recovery issue. From collecting debt in a simple way to dealing with the legal aspects of recovery.
There is no specific market for a debt recovery startup. Every business that extends its products and services on credit is the market itself. These businesses often find it complex to collect their debts. So, they contact these startups to deal with their debts.
The Pandemic- A Way to the Popularity of Debt Recovery Startups?
In the past few months of the ongoing pandemic, the economy has begun to see some changes. The financial debt is decreasing in the market. But Public debt continues to increase. So, the debt to GDP ratio remains high.
The pandemic made the household and corporate sectors flooded into debt. Both the sectors owe huge mortgages, loans, instalments, and more.
The household debt has increased by about 5 trillion dollars, reaching 53.3 trillion dollars in the last year. The corporate debt, even so, has risen about 11 trillion dollars, reaching 152.1 trillion dollars.s
Now, the demand for proper debt handling went up. When the market demands something, it is important to supply whatever it needs.
Debt recovery companies have always been there whether it was a boom or recession. But, the pandemic paved way for debt recovery startups. These startups are now in more demand as they come up with modern and better techniques.
Technology Over the Traditional Practices of Debt Recovery
The pandemic increased the debt in the market. With this debt, there came two types of debtors. The ones who could not pay back their debts. On another note, others only pretended that they could not payback.
Here, the tech-based debt recovery startups solved the issue. They do not hire physical agents to go and investigate every debtor. They make use of technology and build software to differentiate them.
The traditional debt recovery method cannot be a hundred percent reliable. It is quite common for a human to commit a mistake. Technology yet makes the process easier and more reliable.
Fintech 2021- A Revolution for Debt Recovery Startups
Fintech (Financial Technology), as the name suggests combines finance with technology. It aims to replace the traditional methods of financing with modern technology.
Fintech startups are now changing the game of debt collection. They have changed the process of communication.
Now, these startups use artificial intelligence and machine learning. This enables them to keep track of customers engagement without having to call them now and then.
Top 25 Debt Collection Agencies
Atradius Collection
Atradius Collection – Top Debt Collection Agency
Atradius Collection, the agency was built in 1925, and is well known for its benchmark “managing risk, enabling trade”. The agency is based in the United Kingdom as the leading commercial debt collection agency. Atradius Collection is a part of numerous other debt collection trade associations around the world. Such associations include the Federation of European Credit Management Associations, the International Association of Commercial Collectors, and the credit services associations.
The best functioning points of Atradius Collection is,
Free instant online quote
No minimum amount of debt
Engaging with international companies
Atradius Collection has a global success rate of over 79.3%. It has a big customer base of more than 15,000 and manages over 90,000 debt commercial cases every year.
Summit Account Resolution
Summit Account Resolution – Top Debt Collection Agency
The well-established debt collection agency, Summit Account Resolution founded in 1996 works by recovering your debt without any further estrangement with the customers or vendors. Summit Account Resolution has accreditation with the Better Business Bureau (BBB) and comes out with outstanding results. It provides tons of offers such as transparent pricing, customised approaches, and business-to-business along with business-to-consumer collections services.
Summit Account Resolution provides great facilities and a custom approach for the accounts it handles. It prioritises its clients with satisfaction and good bonds by the company.
PRA Group
PRA Group – Top Debt Collection Agency
The prominent company, PRA Group Inc. (PRA) was established in March 1996. It focuses on accumulating and acquiring non-performing loans from Virginia, Norfolk (United States). PRA Group Inc. is counted among the largest debt buyers in the United States by the report of the Federal Trade Commission.
The founders; Kevin P Stevenson and Steven D Fredrickson, founded PRA Group Inc with absolute devotion and innovative plans. As per the reports of FTC, PRA Group Inc is also counted among the top debt buyers.
The top-notch commercial debt collection agency, The Kaplan Group, founded in 1991, manages the working of only Business-to-business collection. The Kaplan Group is one of the most considerable choices in the debt collection agency is because:
The success rate of 85%
Affordable fees on big debt balances
Free upfront and membership
The Kaplan Group handles tons of claims of various sizes from $20,000 to $1 million. Moreover, it offers tons of services such as Background investigation, in-house law firm, skips tracing, settlement agreement, credit analysis, and many more.
MNS Credit Management Group
MNS Credit Management Group
Founded in 1996, MNS Credit Management Group offers boutique services in Business Credit Information and Debt Collection at a global level and is hailed as one of the largest Indian debt recovery management companies. Headquartered in New Delhi, MNS Credit Management Group also has its branch offices in some of the major cities of India including Mumbai, Chennai, Kolkata, Bangalore, Hyderabad, Ahmedabad, Ludhiana, and Tirupur, along with some offices overseas too.
MNS Credit Management Group is a longstanding member of the world’s largest and most extensive global network of Debt Collection specialists. The company works with an experienced group of Attorneys, Chartered Accountants, Management Graduates, and Finance Professionals, and has successfully helped creditors in managing their overdue invoices, credit, and receivables.
MNS Credit Management Group works on a strictly contingency fee model (No Collection – No Fee) for amicable settlement. The contingency fee charged by the company is exclusive of any taxes/GST. All of these makes MNS Credit Management one of the best choices for commercial debt recovery solution.
Rocket Receivables
Rocket Receivables – Top Debt Collection Agency
The debt collection agency owned by TSI, Rocket Receivables, is majorly designed for small business owners. It provides tons of offers to them like healthcare, residential, retail industries, trade, and education. Its membership comes absolutely free of cost and it charges for only the activities of actual collection.
Rocket Receivables safeguards on the fixed-fee collections even as low as $15 per account. It has no online portal access and comes with great results.
Rozlin Financial Group
Rozlin Financial Group (RFGI) – Top Debt Collection Agency
Rozlin Financial Group (RFGI), founded in 2008 is a debt collection agency that provides the service of comprehensive consumer debt collection along with a customised strategy. The company always keeps itself updated on several new and promising collection techniques, regulations or laws through different training programs.
With the help of its numerous offers and services for the customised approach, it improvises itself in the recovery of the accounts. It offers comprehensive reporting and skip-tracing together with its advanced trained staff.
Encore Capital Group
Encore Capital Group – Top Debt Collection Agency
Encore Capital Group is counted as the largest publicly traded debt buyer in the United States based on revenue, i.e. 140 crores USD. Encore Capital Group was established in 1953 with now, investments and undertakings in 15 countries around the globe. Encore Capital Group has its headquarters in San Diego and California (United States).
Encore Capital Group, a consumer banking company that is known as the leading debt management company for several consumers and business owners in a wide range of assets.
ACA International
ACA International – Top Debt Collection Agency
The industry trade group, the Association of Credit and Collection Professionals ACA International, founded in 1939 in the United States works for the handling and management of debt collection agencies including debt buyers, creditors, debt collection industry service providers, and collection attorneys.
ACA International has its well-established headquarters in Minneapolis and Minnesota (United States).
Consumers Financial Protection Bureau – Top Debt Collection Agency
The government agency, Consumers Financial Protection Bureau is the United States-based debt collection agency that looks after the protection of consumers in the financial system. It was founded in 2011 by the US government. It has always been updated with the latest technology tools to keep an eye on the financial entities that are used in social media and algorithms to meet consumers’ goals.
Consumers Financial Protection Bureau provides tons of facilities that include credit unions, payday lenders, banks, security firms, debt collectors, foreclosure relief services, and many other financial companies systems.
National Consumer Law Center
National consumer law center – Top Debt Collection Agency
The non-profit organisation, National consumer law center was founded by Robert Drinan in 1969. It has well-organized headquarters in Massachusetts and Boston, United States. National consumer law center offers for low-income people on their consumer’s issues. Several private advisers, legal services, government and also, community organizations work together with the consumer reform.
The national consumer law center is an America-based company that works for dozens of people who do not have financial stability in their lives.
ARRMS (India) Private Limited
ARRMS (India) – Top Debt Collection Agency
ARRMS (India) Private Limited is one of the top debt collection agencies in India. It helps to provide complete debt recovery solutions that come with proactive legal actions. ARRMS aims at the strategically framed legal intervention that adheres to all regulatory, judicial, and statutory guidelines.
As the methods of debt collections, ARRMS includes a few of the traditional collection methods, for instance, tele-calling, field visits along with legal interventions. The legal interventions can consist of arbitration, enforcement of section 17 orders through court, execution of awards or decrees, mediation, bankruptcy proceedings, criminal proceedings, civil suits, and so on.
Direct Recovery Associates – Top Debt Collection Agency
Direct Recovery Associates Inc has specialisation in collecting professional and commercial service that is being claimed throughout the U.S. as well as in India.
They promise to prove three things – Persuasiveness, persistence, and professionalism. All these skills infused in their collectors make them stand apart from the crowd. Their skills and performances are the escape to their high success rate by bringing in a relevant level of satisfaction for the clients.
The EOS Group
EOS Group- Top Debt Collection Agency
Another top debt collection agency is the EOS Group. It is currently working with 50 companies that operate in more than 25 countries globally. It has been positioned among the leading international collection service providers.
The high rated success of The EOS Group is entirely based on its fusion of expertise in national markets and also in its wider field, international focus. The headquarter of EOS Group is based in Hamburg.
Maxim Credit Management Services
Maxim Credit Management Services – Top Debt Collection Agency
Maxim Credit Management Services is a leading organization that has specialized in domestic and international debt collection as well as debt recovery services. Operating across the Asian countries, this company provides an entire solution in recovering long and overdue debts.
With skilled debt collectors and attorneys, it promises to produce a faster payment from the debtors of the clients. It offers a wide variety of credit and risk management services. The services include Receivable Management and legal and Para-legal Services, Debt Collections and Debt Recovery of all kinds, and Skip Tracing Services.
Cedar Financial
Cedar Financial – Top Debt Collection Agency
Cedar Financial is also among the top debt collection agencies. It focuses on providing the clients, the most professional and comprehensive debt recovery services that are available. The fields of their operation include Commercial, Education, Government, Healthcare, and Retail.
Keeping in mind the commitment and relationship between the parties, they promise a positive payment experience. With current technologies and personnel education programs, they also provide higher conversion rates.
Debt Collection India
Debt Collection India – Top Debt Collection Agency
Debt Collection India claims to be the most competent and competitive organisations from the top collection agencies. They offer a hassle-free mode of performance and commitment from the start to the end.
They have prepared their collectors with rigorous and comprehensive training. This is why they are equipped with the skills required to handle any type of cases in need of a solution. They have been operating for a decade and aims at their enhanced growth with even more promising deeds.
Debt Nirvana
Debt Nirvana – Top Debt Collection Agency
Debt Nirvana has also positioned itself among the leading debt collection agencies in India. The company is represented by a group of people who are working with passion and dedication. They have successfully delivered excellent results to their clients and are equipped with combined experience.
The company has been operating for 2 decades now and partnered with a few MNCs. They are Google, Honeywell, Bharti Airtel, and LG Electronics. It also ensures that the returns of the clients on the investment are higher in rate.
Unified Credit Solutions Pvt. Ltd.
Unified Credit Solutions – Top Debt Collection Agency
Unified Credit Solutions Pvt. Ltd. is the leading B2B Credit Management Group that was established in 1991, sharing its specialisation in fields like Business Information Services, Receivables Management, Para Legal Services, and Debt Collection.
A team of tried and tested professionals, as well as local partners, this company aims at providing prompt, efficient, and reliable service, currently operates in all huge global cities from over 214 countries. It has worked with companies from the fields such as Credit Insurers, Transnational Banks, Accounting & Legal Firms Factoring Companies, and a broad range of Multinational companies too.
It is important to make strategic and diplomatic movements when it comes to monetary transactions.
Afford Motors India Pvt. Ltd.
Afford Motors India -Top Debt Collection Agency
Founded in 1996 by Mehar Yadav, Afford Motors India Pvt. Ltd. is another among the top debt collection agencies. The company initially started with only two employees and an ambition. Standing today it has employed hundreds of employees working in three collection centres. Also, they have two training facilities based in Mumbai and Jabalpur.
This organization provides a wide comprehensive custom collection along with receivables management solutions. It aims at complementing and adding values to its existing methods of collection. They have partnered with a few organizations related to financial retail, services, automobile, debt buying, utility, and related markets.
CreditNirvana
CreditNirvana – Top Debt Collection Agency
Founded in 2018, CreditNirvana helps businesses with debt recovery with the help of artificial intelligence and digital technology. It is New Jersey based startup that helps in making correct strategic collection decisions. It has worked with big companies like Toyota, HDFC, etc.
Recoupex
Recoupex – Top Debt Collection Agency
Recoupex is a debt recovery startup focussed toward industries like- Transportation, Logistics and Storage. It was founded in 2019 in Hamburg. It offers the services of commercial debt collection. It also handles the legalities of the shipping industries.
Pair Finance
PAIR Finance – Top Debt Collection Agency
Pair Finance is a debt collection startup headquartered in Germany. This startup uses Machine learning for its business customers to help recover from debts. This AI-Based fintech debt collection agency was founded in 2016. It helps in finding Digital debt collection partner.
CollectionHub
Collection Hub – Top Debt Collection Agency
Collection Hub is London-based debt collection startup. It was founded in 2020. It is an end-to-end debt collection service. It deals with late payments, factoring, and international litigation and provides quick and effective solutions for receivable management. They connect global companies to help business in hiring debt collection agencies.
Captira
Captira – Top Debt Collection Agency
Captira offers automatic tools for debt collection. Its software facilitates discounts and dispute management. It even provides customization of plans for the customers. It was founded in Albany, New York in 2005. Through its software, Captira helps businesses to follow-up, escalate, and help customers pay unpaid accounts. Its web-based software helps businesses in gettin receivable paid faster and improve cash flow.
Conclusion
It’s very crucial to choose the right debt collection agency for your business. You need to understand the processing and management of how the collection procedure is completed. Also, the maintenance of your bond with the consumers is an important step in debt collection. Debt buyers focus on the accounts with past due and purchase likewise. It possesses trained staff who are well aware of the regulations and ordinances of debt collection.
Small businesses require a good level of a debt collection agency as it suffers the most due to unpaid invoices. You need to find a company that does not charge upfront and has a transparency of price. Moreover, it’s important to have such an agency that uses multiple channels to contact its customers. Through this article, we covered the top level of debt collection of the agencies.
FAQs
What does a debt collection agency do?
Debt Collection agencies collect debts and payments from individuals or businesses who have failed to pay the money they owe for goods, services they have received.
Which are the best collection agencies?
If you are wondering about the best collection agencies, then here’s the list of the top 10 best collection agencies:
Atradius Collection
Summit Account Resolution
PRA Group
The Kaplan Group
Rocket Receivables
Rozlin Financial Group
Encore Capital Group
ACA International
Consumers Financial Protection Bureau
National Consumer Law Center
What is the future of debt collection in India?
Like most industries of today, the debt collection sector is largely embracing the cutting-edge technologies including AI. This is why in the future, the debt collector’s role could go to a bot.
What is a debt recovery plan?
Debt recovery means taking back control of your financial future without getting any (or more) black marks on your credit rating.
Does debt expire?
In most states, the debt itself does not expire or disappear until you pay it. Under the Fair Credit Reporting Act, debts can appear on your credit report generally for seven years and in a few cases, longer than that.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Recordent.
Credit management reinforces a company’s liquidity and improves cash flow if done properly. Credit management helps in managing customer risks and accounts receivables. There are several businesses running on credit terms. Such businesses need timely payments and a transparent cash-flow management. Recordent helps them in managing payments. Recordent is a tech-driven platform that provides credit management services to SMEs, rental companies, and large corporates. Their services helps in providing better and transparent cash-flow management and builds trust among customers which consequently helps in securing business growth.
Read the Success story of Recordent and know more about the startup, founders, the idea of starting up, business model, and its journey towards growth.
Recordent, is an innovative technology platform focused on providing credit management services, enabling businesses in their secured growth. Their solutions are designed for better cash-flow management and business expansion while creating trust and transparency in seller-buyer relationships through data.
Recordent’s long term vision is to enable trust and accountability for businesses that offer a service, credit or a loan to their customers. The Recordent team work with a single aim to empower businesses to reduce their credit and financial risks through its solutions.
Recordent – Industry
Recordent largely operate for the SMEs industry. The current market size stands at $27 bn. Recordent takes valuable information from reports of Atradius, TransUnion & BCG along with the Govt. MSME ministry website.
In terms of the market growth, Recordent anticipate a 20% YoY growth for the coming 5 years.
Harish Mamtani is the founder of Recordent, and Winny Patro is the co-founder.
Harish Mamtani – Co-Founder of Recordent
Harish comes on board with exceptional experience in the education sector. He is the Founder & board member of Seed Schools that was founded in March 2013 to invest in and provide curriculum, training, and management services to high quality low-cost private schools (LCPS) in India. He is also the board member for SoftWear Automation, a company disrupting the $100 billion sewn products industry by creating autonomous sewn good worklines for Home Goods, Footwear & Apparel. Harish Mamtani is more focused towards fundraising, partnerships and growth for Recordent.
Winny Patro is the CEO & Co-Founder of Recordent.
Winny Patro – Co-Founder of Recordent
Winny Patro managesDay to day operations and running the company. He comes with over 12+Years of work experience in public sector, entrepreneurship, business consulting and coaching. Currently, he is spearheading and managing the day to day operations and running of Recordent.
Harish & Winny met in 2017 for a social media impact project. Since, Winny was working with government bodies, and that was the first time they spoke. In around 2019, they were quite concerned and shared similar thoughts on the current MSME industry’s payment cycles and credit risks involved. They came together in a quick thought and wanted to start a company that could solve the standing issues for the MSME sector. And that is how the journey for Recordent began.
Recordent Team
They are now a team of 35+ driven individuals and subject matter experts that have been working on Recordent’s goals to achieve a scenario where businesses are at a position to make sound decisions in terms of finance, and overall credit reduction.
Recordent – Idea & Startup Story
Delayed customer payments was a pain point that both Harish and Winny Patro experienced in the companies that they were running earlier. Their inspiration came from this shared peril where they began thinking on the lines to find a startup that could provide solutions for delayed payments and enable businesses to reduce their credit risks.
The research that went into was first to deep dive into how the trade credit sector operates, and how manufacturing to the last mile delivery value chain works, the trade credit practices and how the credit practices are. How the delayed payments are furthermore affecting the value chain. The founders spoke with key people in the trade credit sector, in trade associations and with bankers to understand the viability of their idea, and that gave us a kickstart to all activities that are currently happening at Recordent.
Recordent – Name, Tagline, and Logo
Recordent Logo
The name of the startup was derived by bringing in the most important factor for SMEs that is to track, collate or simply, record their due payments. Furthermore, Recordent came from the idea of ‘recording’ all key business collections and invoices on a unified platform.
Record + Payment = Recordent
They have recently revamped their branding and logo. Recordent’s new logo depicts growth, and that is why it is a slightly upward arrow. The yellow color in the logo represents optimis, while the lighter blue in the middle stands for ambitions, and finally the darker blue shade represents trust, a solid foundation for Recordent.
Their tagline is ‘Lower your risk. Power Growth’. Itsimply talks about businesses to lower their risks, and therefore empower growth.
Recordent – Business Model & Revenue Model
Recordent’s platform enables businesses to submit their customer dues/invoices on a regular basis to collect payments faster and on-time. Inspired from the Credit Bureau model, Recordent informs customers on how their positive payment track record can be viewed by other businesses & lenders to offer better terms on credit or a loan; thus, motives and creates urgency to pay dues sooner than later.
Recordent – Product & Services
Recordent is a technology platform that enables businesses to improve collections by credit profiling their customers; and reducing risk by providing insights into the payment history of prospective customers. We’ve partnered with Equifax, Leading credit bureau for businesses particularly MSMEs to make better credit decisions before offering credit against goods and services by providing a consent based comprehensive credit report of potential customers. The startup provides credit reports of businesses, entities and individuals with insights into their payment history for a better financial or business decision.
Recordent – Marketing
The first 100 customers came on board completely through direct selling and through associations. Recordent adopted the digital route post reaching a considerable number of members. They now operate in a hybrid marketing model which is a combination of direct selling and digital methods. Their most successful marketing campaign so far has been to have done sms, and marketing affiliations with trade credit associations.
Recordent – Challenges Faced
The initial market that Recordent went after were schools and educational institutions. As the pandemic hit and the schools and institutions shut, the markets were slightly tough to operate on given the current situations. The company soon went ahead with a B2B marketing model, and that is how they put together Recordent, and its solutions.
Currently, Recordent generates a revenue of 4lacs per month, and they have a user base 12,000+ businesses. Some of its notable clients include Udaan, Faith Lumber Pvt Ltd, Pennar industries and Sterling. Their plan for the next 1-2 years is to cater to at least 40,000 businesses and empower their financial well being and fuel their growth.
Recordent – Funding
Recordent has raised a funding of $400K in November 2021.
Date
Stage
Amount
Investors
November 2021
Angel Investment
$400K
Family Office of Kantamaneni & IIM Calcutta Innovation Park and other angel investors from India and the US
Recordent – Recognition and Achievements
Recordent’s constant endeavors are targeted towards building a trustworthy and solution-oriented platform. Recordent is now ISO 27001 certified, a worldwide standard certification that indicates a commitment to data security and assurance that data assets are safe.
Recordent – Partnerships
We’ve also partnered with Equifax India to help businesses particularly, MSMEs to make better credit decisions before offering credit against goods and services by providing a consent based comprehensive credit report of potential customers.
Its partnership with Equifax US aims to reduce trade-related risks for Indian exporters and importers who trade with U.S. companies. The solution enables Indian exporters to check the credit history of their U.S. business clients. These checks save on financing costs, increase competitiveness and expand commercial activity between U.S. and Indian businesses. Indian importers can also make use of the information to ensure their purchases are from valid and creditworthy businesses.
The coming future, the focus will be to keep up the tech oriented solutions and spend time in customer acquisition. Recordent’s major focus areas will be collaborations with complementary fintech and banks for providing financing options to businesses, invoice reconciliation, and adding more services and features to the tech platform for further ease of use.
Recordent – FAQs
When was Recordent founded?
Recordent was founded in 2020.
Who are the founders of Recordent?
Harish Mamtani and Winny Patro are the founders of Recordent.
Who are the competitors of Recordent?
Some of the competitors of Recordent are:
Invoiced
YayPay by Quadient
Tesorio
Lockstep
Versapay
Has Recordent received any funding?
Yes, Recordent has raised a total funding of $400K.
In the last 7 to 8 years, the fintech industry has experienced immense growth all over. A countless number of fintech startups have begun their journey in the last few years and have already put their name on the list of top fintech companies.
As of 2020, the global market size value of the fintech industry is $110.57 billion. Fintech or financial technology is a form of technology that is challenging the traditional method of providing financial services to people.
Now in the fintech industry, there is a thing called credit score, and everyone is dependent on them, including consumers, business ventures, and purchasers. In this article, we will learn how credit scores play an important role in the fintech industry. So without any further, let’s get into the business.
“The major winners will be financial services companies that embrace technology.” – Alexander Peh
In simple terms, a credit score is a number that decides your creditworthiness. The number is between 300 to 850. The more your number is the more is your creditworthiness. This score actually depicts your chances to pay off the money that you owe to the lender.
This helps any kind of financial institution to understand if you are dependable enough to pay the loan if they lend you. If your credit score is high, then the chance of getting a loan and credit increases for you, if you want to buy something. If the score is lower then, the chances of getting a loan decrease.
There are different credit bureaus that check your credit scores and make a report on it and send it to you. The reports are based on many factors. There are three top and popular bureaus that count the credit scores of people.
There are there main international credit score bureaus that assess people’s credit score and they are:
Equifax
Experian
Transunion
Fintech Industry in India
The fintech industry in India has taken a huge turn in a few years, it has changed the way we used to enjoy financial services in the past. Currently, it wouldn’t be wrong to say that India is the hotspot for fintech startups.
As of 2021, the market size is $31 billion and it is said to be the third-largest in the world. By the next five years, we are going to see 22% growth annually. The country has 1860 startups in the fintech industry, out of those 17 have already got the Unicorn status. In the last two years, massive numbers of people have adapted to digital payments systems for any kind of transaction, and it’s only going to increase.
Role of Credit Scores in Fintech
The first thing the financial institution will do after getting your, request for the loan, is to check your credit history. If your credit score is good enough, then it will provide you with the loan and apart from that, loads of rewards and benefits. It is very good support for the fintech companies who are lending money to the borrowers.
How Credit Score is Calculated?
The way of calculating credit scores varies from bureaus to bureaus. They have their own model that they use to get the result. There are five things that are taken into consideration during the evaluation process and they are:
The credit scores help you in two ways and they are:
Your credit score lets you know where you are lacking, the complete report gives you an idea of how you can improve in that area to increase your score. The report consists of all the transactions that you have made.
Through a good credit score, you are eligible to get attractive offers on loans and credit cards. A credit score of 750 and above is the best to get good offers.
How to Improve Credit Score?
Pay your debt before the due date every month.
Don’t ignore your overdue bills pay them as soon as possible.
Keep in mind the credit card you use and its type.
Don’t spend too much on your credit card. Be aware of your spending and try to cut the unwanted ones.
Benefits of High Credit Score
A high Credit score has several advantages, some of which are listed below.
When your credit score is higher, you are eligible in front of banks to get loans and credit cards at considerably lower interest rates. Plus there is a chance of a discount on the processing fee of a high loan amount.
Those who have higher credit scores have a lower risk rate of not paying their debts. It basically means the chances of your loans getting approved are higher.
You are eligible for a credit card that offers good rewards and other offers like cashback as well.
Your credit limit increases, if you’re worthy, then the creditors know that you will pay your debt on time, this increases their trust which in return increases the credit limit.
Attractive Car insurance and home insurance rates are offered to those with good credit scores.’
Less number of documents is needed by lenders from you.
Guarantors are not needed when you are taking a loan if you have a good credit score.
Getting loans or credits can be quite a hassle but if you have a good credit score, then lenders won’t hesitate to lend you the money. Fintechs take the help of credit scores and realize who to lend money and who do not. The credit scores assure the fintech, about your credit risk and the money that they are about to lend,
FAQ
Why do financial institutions look at your credit scores?
Financial institutions take the help of credit scores to determine what kind of borrower you will be and if you are creditworthy or not.
Who uses credit scores?
Credit scores are used by financial service givers, especially lenders.
What is a good credit score?
A credit score of 700 or above is a good one as achieving the perfect 850 is quite hard.
What are the factors that affect credit score?
Payment history, Amount owed, Credit history length, Credit mix, and New credit are the factors that affect credit score.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Artivatic.
The insurance industry in India is growing 12-15% annually since last few years. Technological revolution has brought a technical drift in the industry. Technology like AI & ML are the key drivers to bring innovations in the insurance Industry. Artivatic is among the startups that offers AI-driven automation services in insurance & healthcare. It is a Bangalore based AI Startup that provides SaaS Solutions and provides tech-led insurance solutions and products to automate processes and mitigate risk assessment.
Read the success story of Artivatic to know about Artivatic founders, funding, startup idea, and the journey of its growth.
Artivatic was born in 2018, with the vision of urgently strengthening the position of insurance providers by re-imagining insurance and health solutions for the scores of users, who face hurdles at every step of the journey.
Artivatic’s aim has always been to build new-age insurance solutions and products to automate processes, mitigate risk assessment, and make insurance available 24/7 via tech-led platforms. The only way to proceed was by replacing outdated legacy processes with AI-led customer-centric digital platforms, and that’s the challenge we accepted.
Three years on, Artivatic is already fast-tracking into their next phase of growth by following its course. Being able to provide the whole gamut of sophisticated insurance offerings with zero hassle is the long-term vision – everything from offering seamless health benefits via the chosen networks to AI-driven automated, personalised processes that offer risk systems, the startup wants to foresee every need in this business and cater to it.
Artivatic – Industry
As per the Grand View Research, the total valuation of the global InsurTech market was approximately USD 2.72 billion in 2020 and that it’s expected to expand at a CAGR of 48.8% from 2021 to 2028.
Given the current uncertain times due to the pandemic, businesses everywhere acutely feel the need for insurance, often in more forms than one. In order to capitalise this growing demand, it’s increasingly clear to the industry that legacy software is not viable. To be able to match the dynamics of the ‘on-demand, need-based’ generation, AI and ML is the only way forward. This evolving ecosystem of insurance demands the support of a new manner of operating and that’s where InsurTechs step up.
Since the insurance sector understands the need to shift gears from legacy processes to tech-driven platforms, it’s doing so rapidly. Driven by its rapid transformation, its expansion is as phenomenal—using technology to enhance processes, in order to be more accessible to customers, optimising risk assessment by way of leveraging data, systems processes, etc.
Within half a decade into the future, simplification of the claims process may the key feature to drive growth in this business. Capabilities to implement competent automation processes coupled with transparent communication with users may become important criteria to judge insurance providers by. The focus will be chiefly on using innovations to improve the efficiency of the existing insurance industry model.
Now, even the industry is waking up to the potential of offerings that were previously too difficult for them to provide, such as exceptionally customised insurance policies and social insurance plans, etc—which is now possible given the advanced technology. Hence, this transformation is opening doors to many such previously unexplored avenues. Since it’s within one’s reach to read and analyse Big Data and use it to build better solutions, many unthinkable tasks are now possible.
Founder and CEO Layak Singh decided to focus on and empower the healthcare and insurance segments with Artivatic’s proprietary technologies, after learning about the pressing sectoral needs from his previous ventures. An IIT Kharagpur graduate and a serial entrepreneur, he leads the company in leveraging AI to power tools and solutions that are meaningful to all the parties in the insurance lifecycle, by offering complete lifecycle management.
His mission is to build an end-to-end, transparent InsurTech platforms that’s understood, used and appreciated by all. He was also the Founder and CEO at Fullerene Solutions and Services (P) Ltd, a portfolio company for education, online dating, content, and lifestyle ventures. Layak has also been associated with DRDO, IOCL, and EDUDIGM to execute their projects, with focus on building team, product execution, in business strategies, marketing, PR, revenue and financial performance.
An inveterate entrepreneur, he is also associated with several communities such as Bootstrap Bangalore and 2Weekends Hackathon. A 2014 fellow in the Startup Leadership Program in Bengaluru, his fields of interest encompass not only technology, startups, entrepreneurship, AI, education, but also consumer interaction, culture, and health, with many of his articles gracing renowned publications such as YourStory, Silicon India and Tech in Asia.
Puneet Tandon, a New Jersey Institute of Technology (US) alumnus, is the Co-Founder of Artivatic, and previously he had also founded two online dating startups ‘dateIITians & Cogxio.com’ along with Layak.
Before training its focus to InsurTech, Artivatic was active in the foodtech, travel, and other consumer-facing segments as well.
Co-Founder of Artivatic, Puneet Tandon has 18+ years of experience, with the last 8 years being in product/program management. It is here then that he sensed the need for a full-stack smart AI infrastructure for banks and financial firms.
A serial entrepreneur, like Layak, he has a strong penchant for technology. At present, he is integrating technology for Artivatic to build intelligent applications and solutions in the InsurTech space.
The technology affairs of the company are managed by Puneet whereas the non-technology related matters are sorted by Layak.
Artivatic – Idea & Startup Story
In 2018, Artivatic was born out of the lessons learned from the first two ventures of Founder and CEO Layak Singh, namely, COGXIO and DateIITians. These lessons, combined with market research, helped identify the requirement of an end-to-end B2B AI platform that would draw from pan-industry intelligence in real-time to help users makes the best decisions possible. Following in-depth discussions and analysis over a three-month period, a clear concept of the company was distilled. Right from its initial stage, the manner of scalability, and aligning its vision with the future of the industries it would be serving – Artivatic had its plans charted.
The initial days were, of course, challenging – explaining the concept and probability of solutions to industry leaders till they mapped the solutions to their own needs is always the initial roadblock. But soon industry behemoths like Capgemini and HCL agreed to partner with Artivatic as they successful demonstrated their technology capabilities to solve age-old issues that plagued businesses. That’s how the journey began. Soon, however, the challenges faced by the team inspired them to self-analyse and decide to channel their energies further in leading technology-led transformation of the insurance segment.
Artivatic – Mission and Vision
At its heart, the company’s mission is to help insurance providers, brokers, and TPAs build smart insurance solutions while simultaneously providing a seamless, integrated customer experience to the end-user. Hence, Artivatic’s focus is not only on building consumer-centric apps but also on forging enterprise-grade business solutions.
Artivatic – Name, Tagline, and Logo
Artivatic Logo
The term “ARTIVATIC” is a combination of Artificial Intelligence and Vedic mathematics.
Art – Artificial Intelligence Vatic – Vedic Mathematic
The founders focussed on combining words that accurately reflected their vision of the future—and we see AI governing the world, and we added our unique vision to it.
Artivatic is building new-age insurance products and solutions to automate processes, mitigate risk assessment, and make insurance available 24/7 via technology. And to do all this, one has to start by replacing outdated legacy software with AI-led customer-centric digital platforms.
The InsurTech aims to enable insurance providers, brokers, and TPAs build smart insurance solutions. Simultaneously, they want to provide a seamless, integrated customer experience to the end-user. Hence, they build consumer-centric apps with as much focus as do while forging enterprise-grade business solutions.
Artivatic has launched several platforms, each catering to a specific need in the industry. Artivatic’s stable includes the following-
INFRD
INFRD – Artivatic Product
INFRD is an advanced modular API platform that personalises the customer experience while presenting itself as the singular solution to the risks and complexities.
ALFRED
ALFRED – Artivatic Product
An automated insurance claims platform, ALFRED aids businesses to enable self-claims digital processing, with inbuilt assessment systems of risk and fraud.
ASPIRE
ASPIRE – Artivatic Product
A pocket-friendly, personalised solution, ASPIRE is meant for the group and employee health insurance segment as well as the SME and business insurance section.
AUSIS
AUSIS – Artivatic Product
A full-stack integrated intelligent engine, AUSIS is adept at processing any kind of document and data, and helps with better decision making in the underwriting field.
MiO
An entire online branch and PoS platform rolled into one, MiO connects all parties on one intergrated platforms
PRODX Design
PRODX – Artivatic Product
PRODX is a complete AI-driven personalised smart underwriting tool, which provides huge efficiencies in terms of time, risk, fraud and expenses, among others.
ProdX Distribution: A customised B2B2C distribution and embedded insurance platform for businesses.
Artivatic – Business Model & Revenue Model
Artivatic is a product-based start-up, that provides a wide range of product portfolio and solutions that enable end-to-end digital transformation across the value chain in the insurance and health care industry.
Our products offer simplification, automation and digitised management of the operations and processes in the insurance and healthcare sector.
Our clients such as the hospital networks, the insurance carriers, the insurance brokers or the insurance TPA’s, impact the lives of a million people by providing them and assisting them with their insurance policies and health care. As the impact of better organised operations and processes, our clients are able to serve their clients better.
Our revenue model sits at this intersection of our client/s and their clients. Empowering the working relationship between the two, our revenue is driven by the number of people our client provides insurance policies to or manages insurance policies for or both. Hence most of our product revenue is driven from a per user registration fee concept. To elaborate, for an insurance policy carrier as our client, their policy holders are the registered users, in the above context.
Artivatic – Startup Launch and Growth
Since both members of the founding team have formed startups earlier as well, they were well aware of the fact that launching a company is a risk and that did not deter them. They knew that once their intent and products were understood by industry leaders, their business would gradually overcome the initial hiccups.
The initial two years of the startup were quite trying, with the first year being a huge lesson in acute growing pains of being iconoclastic in a legacy business. Be it facing rejection, bootstrapping, or building a team with limited funds, the team saw through all the phases.
With the launch of the first product in the second year, Artivatic started gradually garnering positive interest. And soon, they had partnered with aggregators such as ClearTrip, Zomato and Dineout to test their capabilities. Since that trial was a success story, the company has only been looking ahead since.
Artivatic – Challenges Faced
The COVID-19 pandemic has been an unforeseen maelstorm that has shaken the world to its core; interestingly, due to the nature of Artivatic’s business, they have been affected in a positive manner. The demand for their digital innovations has only grown in this scenario, and the transformation to tech-led from legacy of insurance providers is happening sooner rather than later in order to be future ready.
Artivatic – Marketing Strategy
Artivatic’s content engine has evolved as a critical function to Marketing Strategy by supporting business teams with strategic inputs backed by market research and supporting communication for business development activities. Moreover,
1. Their content engine is holistically maintained and managed by the in-house team, with a scientific, targeted approach to leverage digital marketing tools and traditional tactics for content substantiation, designing, and amplification.
2. With no additional outsourcing budget, content development enabled various engines in parallel, viz:
Branding & Marketing
Lead Generation – both for business development as well as attracting talent
Artivatic has raised a total funding of about USD 2.06 Million, with KFintech, Indian Angel Network, Scale Venture Partners and Sensei as their investors.
Date
Stage
Amount
Investors
May 2021
Corporate Round
$1 Million
KFintech
December 2020
Bridge funding-for R&D
Undisclosed
Scale Ventures and Indian Angel Network
February 2019
Seed Round
$500K
SenseAI Ventures
September 2017
Angel funding- to expand customer base and fortify technologies
$133K
Deepak Verma and Saurabh Chugh
July 2017
Angel funding
Undisclosed
Spark10 Accelerator UK
Artivatic – Advisors and Mentors
As a business leader, one is mired in the day-to-day of one’s company’s operations. Apart from the constant struggle to manage all that has to be accomplished in the short timeframe available, there also are unchartered territories to be navigated. A board can help one rise above the situation and look at the complete picture. They help the founder chart a more strategic direction that’s very difficult to spot in the daily grind.
For the same reasons, Artivatic is also backed by a panel of prominent industry leaders and entrepreneurs. If we need to identify one individual, then Rajesh Relan, as the Board of Director, has helped Artivatic with industry connections and provided a sanity check on business practices at regular interventions.
Artivatic – Mergers and Acquisitions
In May 2021, market leading registrar and transfer agency KFin Technologies acquired a 17% stake for an undisclosed amount in Artivatic. The startup has channelled the funds to expand its portfolio, explore new business opportunities and broaden its global footprint.
Artivatic’s modular API-based healthcare platform called DARVIN, which was built for customers, insurance, clinics, and hospitals—won top honors in the healthcare category in RAISE 2020. RAISE 2020 was organised by the Ministry of Electronics and IT as a five-day virtual global AI summit, which was inaugurated by Prime Minister Narendra Modi. Organised in conjunction with NITI Aayog, it’s a government initiative to support tech startups and entrepreneurs through recognition and guidance, with winners taking home a reward of Rs 20 lakh.
Artivatic also won at the 2018 EMERGE 50 Awards organised by NASSCOM.
Artivatic – Tools Used
The sound of the word ‘startup’ rings many bells. Most commonly, the product or the service is the core business model. However, it takes a lot more than that to practically run a startup. The primary need is management tools and operations simplification tools to manage employee processes and day-to-day documentation activities.
Artivatic uses standard tools for HR management that help the employees onboard from their day 1 in the organisation and another efficient tool for end-to-end project management.
Artivatic – Future Plans
Artivatic aims to garner USD 15 million in revenue by Q2 2022, and is looking at 110% MoM growth in the coming months.
In the next 5 years, Artivatic wants to establish itself as a globally-recognised InsurTech, with a clear focus on:
• Establishing the brand with every operational centre scaling up independently in its area.
• Building local teams to power a decentralised capabilities network, thus enabling a scalable model.
• Expanding SME and commercial sectors by creating next-gen platforms and byte-size insurance plans to affect industry growth.
Artivatic – FAQs
When was Artivatic founded?
Artivatic was founded in 2018 at Bangalore.
Who is the founder of Artivatic?
Layak singh is the founder of Artivatic. He also serves as CEO of Artivatic.
Who are the investors of Artivatic?
Artivatic has raised a total funding of $2.06 Million. Investors funding for Artivatic are:
Sarika Anand
