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Tag: Fintech companies

  • Karza Technologies Success Story: A One-Stop Shop for Your Lending Journey

    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 Karza Technologies.

    Non-performing assets (NPAs) and frauds have been plaguing Indian banks for the last several years. In 2021, the total amount of non-performing assets held by Indian public sector banks was approximately 6.17 trillion Indian rupees. However, as of March 2022, the percentage of gross non-performing assets in the banking sector fell below 6%, which is the lowest it has been since 2016, and bank loan frauds stood at INR 58,303 crore in FY22.

    Karza Technologies has stepped in with big data analytics, business intelligence, and machine learning to carry out background checks and assess the creditworthiness of borrowers not just on their track record but also on their future potential and intent to repay. Karza is building an intelligent system that analyzes available financial information from the institutions and trawls the internet for lurking signals that will raise a red flag about the creditworthiness of the borrowers. Recently, in February 2022, this fintech startup was acquired by Perfios Software Solutions.

    In this article, know about Karza Technologies, it’s business and revenue model, products and services, founders, startup story, and more.

    Karza Technologies – Company highlights

    Startup Name Karza Technologies
    Headquarters Mumbai, Maharashtra, India
    Industry Financial Services
    Founders Omkar Shirhatti, Gaurav Samdaria, Alok Kumar
    Founded 2015
    Total Funding Raised $1.1 million
    Parent Organization Perfios Software Solutions
    Website karza.in

    Karza Technologies – About and How Does It Work?
    Karza Technologies – Industry
    Karza Technologies – Founders and Team
    Karza Technologies – Startup Story
    Karza Technologies – Name, Tagline, and Logo
    Karza Technologies – Mission and Vision
    Karza Technologies – Products and Services
    Karza Technologies – Business and Revenue Model
    Karza Technologies – Startup Launch
    Karza Technologies – Marketing Strategy
    Karza Technologies – Funding
    Karza Technologies – Recognition and Achievements
    Karza Technologies – Challenges Faced
    Karza Technologies – Competitors
    Karza Technologies – Future Plans

    Karza Technologies – About and How Does It Work?

    Karza strives to be a one-stop solution for the financial services ecosystem. Karza is an analytics and automation platform that aggregates and stitches information from 850+ public databases to meet service automation, onboarding, due diligence, and monitoring requirements for the BFSI sector. Their services permit the seamless onboarding of customers and the mitigation of risks, allowing for a better assessment of any customer type, be it individual or entity.

    Karza began providing its business intelligence, AML screening, KYC verification, and other services with a view to preventing systematic fraud through consistent innovation in the service of the larger public good. It has so far been successful in its stated objective of reducing fraud, having successfully prevented losses of over 2,500 crores by weeding out bad applications at the outset. It has also greatly simplified the customer onboarding process, with myriad solutions for KYC verification, including VideoKYC.

    It is now acknowledged as being one of the preeminent KYC and business intelligence service providers in the country and has 400+ banks, insurance companies, and financial institutions dependent on its services to protect against identity theft, comply with AML and other regulatory obligations, and conduct customer due diligence and enhanced due diligence on their clientele.

    Karza Technologies – Industry

    The fintech market in India is a rapidly growing industry that encompasses a wide range of financial services and technologies. This includes areas such as mobile payments, online lending, digital banking, insurance, and investment platforms.

    Digital lending includes services such as online personal loans, business loans, and other types of digital lending. Other important segments in the Indian fintech market include insurance, investment and wealth management, and blockchain technology.

    As of FY2021, the fintech market in India was valued at INR 2.48 trillion. It is projected to reach a value of INR 9.27 trillion by FY2027, growing at an annual rate of around 24.96% during the period between FY2022 and FY2027.

    Overall, the fintech market in India is expected to continue growing in the coming years, driven by increasing demand for digital financial services and the government’s efforts to promote digital financial inclusion.

    Top 50 Leading Fintech Startups in India 2022
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    Karza Technologies – Founders and Team

    Karza Technologies was founded by Omkar Shirhatti, Gaurav Samdaria, and Alok Kumar.

    The co-founders, Gaurav and Omkar, knew each other from their college days, as they had pursued their graduation and chartered accountancy together, after which they took up different jobs. They are level-headed individuals with an enterprising mindset and a penchant for white-collar investigations. Omkar and Gaurav often engaged in conversations about their experiences with the BFSI sector and were struck by the massive gaps that could be filled by data-led, deep-tech approaches.

    By March 2015, both Gaurav and Omkar had a fairly structured idea about the way forward, as they had already begun interacting with market stakeholders. Both had to quit their jobs, and the company was incorporated in June through personal investments. However, they were two chartered accountants who were starting a tech company and were in search of a tech expert.

    The next challenge was to find a suitable developer. By reaching out to Gaurav’s friend circle, they were able to find some leads to begin the hunt for a tech co-founder, wherein close to 200 to 250 people were personally interviewed by Omkar and Gaurav. They narrowed down their search and found Alok, who has a Master’s in Computer Science from IIT Kharagpur and had been working with Morgan Stanley. He was part of a 7-member global elite team that was working on global tech data, AIML projects, wire transfer frauds, and transaction pattern recognition to detect wire frauds and anomalies, etc.

    They discussed the overall vision of Karza and the scale of the operations, including the complexities of profiling millions of businesses, detecting shell entities, and other AI, ML, and data science-related use cases. This excited Alok immensely, and he decided to take up the opportunity, put his Ph.D. and advanced learning dreams on the back burner, and come on board as a co-founder and CTO at Karza.

    Omkar Shrihatti

    Omkar Shrihatti - Co-founder and CEO at Karza Technologies
    Omkar Shrihatti – Co-founder and CEO at Karza Technologies

    Omkar serves as the co-founder and CEO of Karza Technologies and also as the
    Chief Product Officer at Perfios (Karza Technologies’ parent company). Before co-founding Karza Technologies, Omkar Shrihatti served as a senior consultant at Ernst & Young, a global leader in assurance, tax, transaction, and advisory services. He has over 12 years of experience in the fields of fraud investigations, background checks, and so on.

    Gaurav Samdaria

    Gaurav Samdaria - Co-founder, Director at Karza Technologies
    Gaurav Samdaria – Co-founder, Director at Karza Technologies

    Gaurav is the co-founder and Director of Karza Technologies and
    Chief Business Officer at Perfios. Previously, Gaurav served as the co-founder and Director at Schbang Digital Solutions, an integrated marketing solutions agency. Prior to that, he worked as the Chief Financial Officer at M/S FoxyMoron, a marketing and advertising firm.

    Alok Kumar

    Alok Kumar - Co-founder, CTO at Karza Technologies
    Alok Kumar – Co-founder, CTO at Karza Technologies

    Alok is the Co-Founder and CTO at Karza Technologies. After completing his master’s from IIT Kharagpur with a focus on machine learning and big data, Alok specialized as a data scientist for Morgan Stanley for over three years, working on mining/natural language processing (NLP), and fraud detection.

    Karza Technologies – Startup Story

    The idea behind Karza stemmed from conducting investigations at our previous workplaces. Having worked with global consulting firms such as EY, their focus had been on fraud investigation, during which they identified several gaps in the processes followed by the BFSI sector. They were investigating loan frauds, hawala transactions, security market frauds, conducting market surveys, due diligence, etc., which gave us insights into identifying how money gets siphoned off in fraudulent transactions, how hawala and money laundering work and the way shell companies are floated, etc.

    They did a lot of secondary research to identify, piece together, and gather all the scattered information to understand how Karza could solve problems with its data-first approach. While investigating loan frauds, they realized that banks used a lot of manual processes, which led to inefficiencies and were not able to keep pace with the technological advancements in the sphere. Even though the government had already begun to take huge strides in digitization, promoting their vision of a digital India, banks were unable to effectively capitalize on the opportunity with their existing resources, and their processes largely remained manual.

    The inspiration came from the above-mentioned scenario, where they realized the power of leveraging technology to build solutions where intelligent information relevant to an entity can be searched and profiled based on various official sources.

    Initially, they were able to meet people in the industry due to the social circle of their partners. Some of the interactions were instrumental in creating their first products. From the smallest cooperative banks to large PSUs, private sector banks, etc., they were all pivotal in helping them understand how to build robust products that cater to the BFSI segment. The initial set of clients came in through conversations at BFSI summits and conclaves, where the need for their solutions was immediately recognized, giving us a head start.

    Karza Technologies Logo
    Karza Technologies Logo

    The name ‘Karza’ came into their focus as it was catchy and roughly translates to ‘lending‘ in several Indian vernaculars. They were looking for names that could be relatable and easily remembered. They reckoned that as a company that provides money-lending technologies, they must keep it simple and go ahead with ‘Karza’, a term specific to India.

    Their aim was to revamp how consumers approach BFSIs and the overall journey to get a loan and to revolutionize the lending process by automating every aspect of it. This way, the name will be associated with a service that smooths this process.

    Karza Technologies – Mission and Vision

    They are now exploring other avenues to expand into, with a continuing focus on the BFSI sector. Karza Technologies is constantly innovating and looking to build products that can increase credit access and availability and, among a host of other things, is looking at the NBFC Account Aggregator framework, the creation of workflows, and improving our analytics and scoring services.

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    StartupTalkyShalini Rath

    Karza Technologies – Products and Services

    The traditional BFSI ecosystem has various limitations that make organizations slow, inefficient, and unable to service rising demand:

    Scattered and Unstructured Data:

    • Data is scattered across the web and not available in a consumable, intelligent manner.
    • Evidenced by multiple licensing requirements, high requirements for statutory and compliance filings, several state-level regulatory bodies, and regional language portals.
    • Lack of credible intelligence also hinders the ability of institutions to service smaller and newer credit customers, inhibiting financial inclusion.

    Manual Processes:

    • Processes such as onboarding, verification, and collection of data, when undertaken manually, have a high turnaround time and lead to huge operational costs.
    • Moreover, these processes are prone to error and/or manipulation and can lead to fraud and misappropriations remaining undetected.

    Karza Technologies endeavors to eliminate these inefficiencies by harnessing the power of big data and AI to provide automated, scalable, and customizable solutions, enabling the digital transformation of businesses. They provide a multitude of services applicable across the lending lifecycle and to different industries.

    They started with commercializing Total KYC, onboarding, and the verification suite. Karza Technologies adopts the principle of research-driven innovation to constantly roll out updates, improvements, and new features to its services. Over the course of their research, they also found a need in the market for a product that would allow enhanced due diligence to be carried out effectively and a need to increase access to credit for SMEs. Accordingly, they have built a due diligence platform, KScan, that enables them to conduct due diligence on all business entities registered in India, including identifying litigation filed against these entities.

    They supplemented this with our GST and Income Tax solutions, which enable banks to effectively assess the credit risk of lending to SMEs. Most recently, they have gone live with their skip tracing solutions, improving the contact ability of defaulters and improving recovery rates for financial institutions.

    Karza Technologies combines human and artificial intelligence through a research-driven development process to create products that address the gaps in the BFSI sector, payment companies, and larger corporates. With data collected from 800+ publicly available sources, they combine alternate data sets to provide maximum insights that no other player in the market can currently provide.

    Karza Technologies – Business and Revenue Model

    Karza Technologies is a B2B Software-as-a-Service (SaaS) company and works closely with various players across a multitude of industries, including lending, insurance, payments, corporates, law, investment, and several others. Their services are consumed both in the form of APIs that directly integrate with the core banking systems for large players in financial services and in the form of consumer-friendly dashboards that make the consumption of information as easy as possible.

    The pricing will vary from product to product and be based on the level of customization required by clients. On account of the highly customizable nature of our solutions, they do not have fixed pricing models. They also offer batch modules for their clients so that they can directly share their insights in the form of reports.

    Karza Technologies – Startup Launch

    Their initial response from potential clients was positive, as the clients were in dire need of the sort of products that Karza was building. However, the onus was on Karza to prove its mettle and deliver working prototypes, EPIs, etc. that would lead them to use Karza for their business functions. For starters, Karza had to start small by packaging micro-services and catering to the first customers through the initial connections.

    Later on, growth was solely through word of mouth. They ended up revamping or digitizing processes for several organizations, with the first year and a half going into researching, identifying resources, and offering offline reports. Furthermore, eliminating fraud was a serious concern for banks, as they weren’t getting the right sort of intelligence for processing the loans seamlessly.

    Karza Technologies – Marketing Strategy

    In the year 2017-18, there were 32 clients, 66 clients by March 2019, and crossed the 100 client milestone in October 2019, reaching a total of 142 clients by March 2020. This was achieved only by the word of mouth alone, as clients were extremely satisfied with the utility of the products that were being delivered. Now, the platform boasts of having 400+ clients.

    Karza spent zero money on marketing and PR until June 2020. They were getting all their leads from existing client referrals; it was completely word-of-mouth. This speaks a lot about the utility and advanced products that Karza has to offer. They fulfill market demand by being a one-stop solution for the entire lending transaction cycle. However, for the next phase of growth, their focus could be on building better marketing and branding strategies now that Karza has managed to make a name for itself in the financial sector.

    The NBFC-Account Aggregators ecosystem is improving, which opens up new opportunities for Karza. Entities weren’t able to look into banking analytics earlier; however, through public information sources, a proper official channel can be merged with external intelligence, making the lending process even faster. India has always been a credit-hungry country, and there will be enough space for Karza to expand its presence and build the necessary onboarding and due diligence infrastructure in the long run.

    Karza Technologies – Funding

    Karza Technologies has raised a total funding worth $1.1 million in over two rounds.

    Date Round Amount Lead Investors
    Jul 1, 2019 Series A $750k –
    Jun 21, 2017 Seed Round $388.5k –

    Karza Technologies – Recognition and Achievements

    • Recognized as Top25 startup in India to work with, in 2019 by LinkedIn
    • Winner of HDFC Bank’s Digital Innovation Summit 2020
    • Super Winners (Won every category) at Technoviti 2020 by Banking Frontiers
    • Winner of Amazon AI Award 2019 for Fintech
    • Winner of FinTech Spot Pitches at Fintegrate Zone 2018 held at BSE
    • Winner of the FinShare 2018 challenge held by ShareKhan
    • Maharashtra start-up week- Winners- August 2020

    Karza Technologies – Challenges Faced

    Like every other startup, Karza too has gone through ups and downs during its overall business cycle, as it has had to be cognizant of cash flows. With minimal balances, they initially faced challenges in managing resources to pay off employees and run the organization in parallel. However, the intention was always to be profitable and build a sustainable business rather than go after the valuation game, and they have since been cash-flow positive.

    There were challenges also with banks when Karza tried to crack it through. They started with fintech companies, who were the early adopters of our offerings, as they could discuss the services and their applicability openly with the founders and make the right kind of propositions. Later on, they reached out to slightly larger NBFCs, which often had centralized decision-making and a close-knit setup because they would have a single product or offering, which made communication easier. However, with banks, they realized that getting through to them would be tough, as it could take several months or a year to close an agreement with them.

    Well-known banks often expect major partnerships while participating in large-scale RFPs, and these challenges can be overcome with time. Karza had gone through a learning curve in the initial months, trying to understand how to bid on RFPs and mature as an organization.

    Their other aim is to be cash-rich and maintain healthy liquidity. On the business decision front, the challenge has been getting the right talent. Bangalore is leading the country in terms of producing top-quality tech talent, and attracting the best tech workers to Mumbai was the biggest hurdle. It took two and a half years for them to get the first 20 people on board. In 2018-19, they got 20 more techies, and 40 more in 2019-20. Therefore, getting highly motivated and talented tech experts has always been challenging.

    Karza Technologies – Competitors

    Some of the competitors of Karza Technologies are:

    • Razorpay
    • CreditVidya
    • Zest AI
    • Nova Credit
    • Digit Insurance

    Karza Technologies – Future Plans

    Karza Technologies is the partner of choice for 400+ clients across banking, lending, payments, insurance, investments, and commerce for digitization, verification, and diligence, including all four credit bureaus, processing over 10 million transactions per month.

    Their APIs are integrated with 40+ workflow providers and cover all leading LOS players. Their top clients include Google Pay, Cash Bean—a digital lender—IDFC First Bank, Bajaj Finance, and ICICI Bank, among others. While their only office is based in Mumbai, they work with clients situated across India, from large cities to even rural communities.

    Karza Technologies continues to create solutions that transform the consumption of BFSI solutions. Their future plans include expanding and enhancing their existing product suite with additional data, investing in technologies such as advanced natural language processing and computer vision to strengthen their analytics offerings, and building automated solutions for partners.

    FAQs

    What does Karza Technologies do?

    Karza Technologies provides business intelligence services to transform the ways financial institutions lend money. It takes care of the complete lifecycle, from onboarding to diligence and monitoring to collection.

    Who founded Karza Technologies?

    Karza Technologies was founded by Omkar Shirhatti, Alok Kumar, and Gaurav Samdaria.

    Who is the CEO of Karza Technologies?

    Omkar Shirhatti is the CEO of Karza Technologies.

    How much funding has Karza Technologies raised to date?

    Karza Technologies has raised $1.1 million to date.

    When was the last funding round for Karza Technologies?

    Karza Technologies’ last funding round took place in July 2019 from a Series A round.

    Which company has acquired Karza Technologies?

    Perfios Software Solutions has acquired Karza Technologies for INR 597 crore.

  • Chime Success Story – Making Banking Easier Than Ever

    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 – Company Highlights

    Company Name Chime Financial, Inc.
    Headquarters San Francisco, California, United States
    Industry Financial Services
    Founders Chris Britt, Ryan King
    Founded 2013
    Total Funding Raised $2.3 billion
    Valuation $25 billion (2021)
    Revenue $950 million (2021)
    Website chime.com

    Chime – About
    Chime – Industry
    Chime – Founders and Team
    Chime – Startup Story
    Chime – Name, Logo, and Tagline
    Chime – Mission, and Vision Statement
    Chime – Business Model
    Chime – Funding, and Investors
    Chime – Acquisitions
    Chime – Competitors
    Chime – Future Plans

    Chime – About

    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.

    List of Top 16 Fintech Startups in USA 2022
    When it comes to fintech startups, the USA beats all the countries to maintain the top rank. Here is a list of top fintech startups in the USA.
    StartupTalkyMichelle D’souza

    Chime – Founders and Team

    Chime was founded by Chris Britt and Ryan King in the year 2013.  

    Chris Britt & Ryan King | Founders of Chime
    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 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.

  • Top 16 Fintech Startups in the USA

    Fintech or financial technology in the last decade has been one of the world’s most promising sectors. FinTech has changed the way finances are conducted with mobile banking, investing, and blockchain apps. According to the Modern Knowledge World, the centerpiece of this technology trend is the United States where 1,491 startups and $58,5 billion invested in the sector.

    Yet banks are not the only financial institutions that have changed technologies. Digital financial access is embedded in entire markets, including digital loans and mobile stock systems, e-commerce payment networks, and digital currency exchanges.

    In this article, we will talk about some of the top Fintech startups in the USA. So, let’s get started.

    What is Fintech?
    Evolution of Fintech in the USA
    List of Top Fintech Startups in the USA
    Stripe
    Chime
    Plaid
    SoFi
    Coinbase
    Ripple
    Toast, Inc
    Spur
    Credit Karma
    Opendoor
    Root
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    What is Fintech?

    Fintech means Finance + Technology which refers to the amalgamation of both into software that seeks to improve and automate the delivery and use of financial services. Fintech defines any business offering financial services through software or other technologies, from smartphones to cryptocurrency payment applications.

    Fintech firms have changed nearly every part of the finance sector in recent years. Ten years earlier, individuals had to visit a branch or bank to apply for a deposit, a credit or to transfer funds literally from one bank to another. At present, Fintech has made it possible, without having to ever step into a bank to spend, borrow, save, and move funds through online and mobile services. Although conventional institutions are picking up technologies from fintech steadily.

    Evolution of Fintech in the USA

    Fintech was even longer than most people believe. Though Fintech’s current version helps you to pay for a coffee cup with a smartphone app, financial infrastructure history goes back to the first credit cards accepted by the public at the end of the 1950s.

    Financial technologies developed and implemented many significant milestones in the mass market after the credit card, such as ATMs, Electronic Shares, Mainframe Bank computers, and internet stock investment. Many modern technologies improved the financial system that most people used, but had to think seldom about every day.

    Today, solutions from the Fintech industry challenge existing banking infrastructure, for example by using a payment app on the mobile wallet, rather than the carriage of physical credit cards in a physical wallet.

    Fintech’s various markets have been revolutionized, particularly in the financial, commercial, insurance, and risk management industries. Fintech firms include startups, technology companies, and existing financial institutions leveraging digital innovations such as big data and artificial intelligence to enhance financial services usability and performance, blockchain, and edge computing.

    List of Top Fintech Startups in the USA

    Stripe

    Founder – Patrick and John Collison

    Founded – 2010

    Stripe Logo | Top Fintech Startup in USA
    Stripe Logo | Top Fintech Startup in the USA

    Stripe is an Irish-American financial service and SaaS company founded by Patrick and John Collison. Stripe provides payment infrastructure for businesses of all sizes from startups to large enterprises that use Stripe’s software, and APIs to accept payments, send payouts, and manage their businesses online.

    Zoom, Shopify, and Amazon are some of their clients. Stripe claims to be the world’s most powerful and end-to-end API. In 2019, Stripe launched a new corporate credit card and small business loans, which are automatically repaid from payments it processes for borrowers.

    Chime

    Founder – Chris Britt

    Founded – 2012

    Chime Logo | Top Fintech Startup in USA
    Chime Logo | Top Fintech Startup in the USA

    An increasing crowd of startups bets on your smartphone for banking. Chime, headquartered in San Francisco, has experienced its sales explosion over the past year and provides a debit card with no annual or overdraft charge. According to a person familiar with the topic, it is set to hit almost $200 million in 2019, a fourfold increase over 2018. With many significant tactics, Chime has drawn 5 million clients – or about 3.3 million users, based on an annual average of 1.5 accounts per client. Chime allows you to pay for a direct deposit to control the main functionality.

    Plaid

    Founder – Zach Perret and William Hockey

    Founded – 2013

    Plaid Logo | Top Fintech Startup in the USA
    Plaid Logo | Top Fintech Startup in the USA

    Plaid was founded by Zach Perret and William Hockey. Plaid provides a simple front-end module that streamlines the onboarding experience. It can be implemented with 2-3 lines of coding. Plaid connects payment apps like Square Cash and personal finance apps like Acorns to users’ bank accounts to transfer and track funds. American Express, Venmo, Coinbase, and Betterment are some of their clients.

    SoFi

    Founder – Mike Cagney and Dan Macklin

    Founded – 2011

    SoFi Logo | Top Fintech Startup in the USA
    SoFi Logo | Top Fintech Startup in the USA

    SoFi began out as a small business with just one commodity by launching a fintech service mainly for refinancing student loans. The organization sells several items today, but refinancing student loans remains its flagship commodity. SoFi is a value-driven organization with a task to help our members earn a living. We develop new financial goods and services that can enable customers to borrow, save, buy, save and safeguard their cash more, gain financial freedom, and meet their ambitions—from homeownership to pension plans, to paying student loans, and more.

    Coinbase

    Founder – Brian Armstrong and Fred Ehrsam

    Founded – 2012

    Coinbase Logo | Top Fintech Startup in the USA
    Coinbase Logo | Top Fintech Startup in the USA

    CoinBase has become a regular on-ramp for new crypto-investors as the leading mainstream cryptocurrency exchange in the United States. Coinbase provides a broad range of items, including cryptocurrency investment, an integrated trade network, institutional custody accounts, a retail investment wallet, and a secure U.S. dollar coin. Coinbase has taken the lead in offering crypto custody services to organizations since having developed its position as a stable and regulatory crypto-exchange and a personal wallet and new currencies tailored to cater to those wanting more anonymity. The company has become a pioneer in the crypto industry.

    Ripple

    Founder – Arthur Britto, Jed McCaleb and Chris Larsen

    Founded – 2012

    Ripple Logo | Top Fintech Startup in the USA
    Ripple Logo | Top Fintech Startup in the USA

    Ripple is both a peer-to-peer (RippleNet) and a digital currency transferrer (ripple XRP). The platform itself is a protocol for open-source transactions between two parties. All currencies, such as sterling currencies, bitcoins, and air miles, among others, can be traded on the site. In 2019, XRP sold $500 million to MoneyGram, using sales to raise and invest up to $50 million, currently using XRP in 10% of its Mexico purchases across borders.

    Toast, Inc

    Founder – Steve Fredette, Aman Narang and Jon Grimm

    Founded – 2012

    Toast, Inc. Logo | Top Fintech Startup in the USA
    Toast, Inc. Logo | Top Fintech Startup in the USA

    Toast, Inc. is a Boston, Massachusetts-based cloud restaurant tech firm. Toast, Inc. was one of the leading technology names when the calendar was turned towards 2020. In the secondary markets, shareholdings of the private enterprise that produces restaurant apps were in strong demand. In mid-February, current investors contributed about $5 trillion in investment, almost double the previous year.

    Spur

    Founder – Glenn Clayton

    Founded – 2017

    Spur Logo | Top Fintech Startup in the USA
    Spur Logo | Top Fintech Startup in the USA

    Spur simplifies human capital by leveraging a digital interface to provide embedded financial services on an hourly basis for its staff. Your business plan saves time and resources and allows staff to improve their financial status. Spur was developed by companies who want to take up the responsibility of job management less time and more time for their enterprises, their clients, and their hourly employees.

    Credit Karma

    Founder – Kenneth Lin

    Founded – 2007

    Credit Karma Logo | Top Fintech Startup in the USA
    Credit Karma Logo | Top Fintech Startup in the USA

    Credit Karma is known best for its free credit and loan reports. It is however a platform that provides its customers with the ability to create a stronger financial future. If you wish to use Credit Karma you should give your name and the last four digits of your Social Security number. You should have simple personal information. Credit Karma can then view your loan report, and collect and make it available to you with your consent. For users who utilize credit card reviews, personal, home-and-auto loans, or auto insurance, Credit Karma earns a big reference fee.

    Opendoor

    Founder – Eric Wu, In Wong and Keith Rabois

    Founded – 2014

    Opendoor Logo | Top Fintech Startup in the USA
    Opendoor Logo | Top Fintech Startup in the USA

    Home sellers in 21 cities can submit all-cash deals online from Opendoor and collect offers within 24 hours. The application initiated last year helps customers to arrange their own guided tours and deliver houses to sell in six cities, Dallas and Phoenix included. You only present details and pictures of your home through their website to sell your home with Opendoor. All these advantages Opendoor especially apply to veterans, openings, relocators, or people who have to sell their homes quickly. Opendoor also appreciates the ease of online and straightforward deals and costs for the youngest generation.

    Root

    Founder – Alex Timm and Dan Manges

    Founded – 2015

    Root Logo | Top Fintech Startup in the USA
    Root Logo | Top Fintech Startup in the USA

    Founded by Alex Timm and Dan Manges, Root raised $100 Billion for a $1 Billion valuation in 2018 and entered the unicorn club. Root provides car insurance to drivers. Root qualifies customers and sets their rates by first monitoring their driving with a smartphone app measuring 200 variables. After monitoring they provide a quote and allow their customers to change policy. Last year, Root brought claims processing in-house and expanded into renters’ insurance, offering to cover property whether stolen from a customer’s car, apartment, or hotel room.

    Paydiant

    Founder – Kevin Laracey, Chris Gardner and Joe Paratore

    Founded – 2010

    Paydiant Logo | Top Fintech Startup in the USA
    Paydiant Logo | Top Fintech Startup in the USA

    Paydiant, Inc. is a PayPal-owned financial technology agency. It offers cloud-based services for supermarkets, insurers, point of sale, and ATM vendors. The enterprise is located in Auburndale, Massachusetts, and was founded in 2010.
    The North Bridge Investment Partners and General Catalyst Partners funded Paydiant for $ 7.6 million in 2011. In 2012 and 2013 Paydiant earned $12 million and $15 million in grants.

    Kraken

    Founder – Jesse Powell

    Founded – 2011

    Kraken Logo | Top Fintech Startup in the USA
    Kraken Logo | Top Fintech Startup in the USA

    Kraken was founded by Jesse Powell in the year 2011. This US fintech startup deals with the trading of cryptocurrency. It is a big marketplace where buyers, sellers and traders gather together for exchanging all kinds of digital assets. The platform has over 9 million customers from over 190 countries. The headquarters of the company is situated in California, The United States of America. Kraken also has released an app for its international customers in 2021.

    Robinhood

    Founder – Vladimir Tenev and Baiju Bhatt

    Founded – 2013

    Robinhood Logo | Top Fintech Startup in the USA
    Robinhood Logo | Top Fintech Startup in the USA

    Robinhood is a fintech company that provides an online platform where you can invest and trade without giving any commissions. The company was founded by Vladimir Tenev and Baiju Bhatt in the year 2013. The company’s aim is to make investing familiar and easy for everyone. The headquarters of the company is situated in California, The United States of America.

    Brex

    Founder – Henrique Duburgras and Pedro Franceschi

    Founded – 2017

    Brex Logo | Top Fintech Startup in the USA
    Brex Logo | Top Fintech Startup in the USA

    This fintech company mainly deals with technology companies and provides them with business credit cards and accounts for cash management. The company was founded in the year 2017 by Henrique Duburgras and Pedro Franceschi. The company also offers financial management tools to the business of its customers. The headquarters of the company is situated in California, the United States of America.

    Conclusion

    During the COVID–19 pandemic, particularly in emerging markets, the Fintech industry continued to help expand access to financial services with strong growth in digital financial services of all kinds. For poverty reduction and economic development, access to quality financial resources is important. The access and use of basic financial resources for poor people, in particular women, will increase wealth, strengthen resilience, and better their lives. Fintech developments aim to lower the costs of service supply, enable more customers to be served and reduce the need for face-to-face contact, critical to the pandemic’s continued economic activity.

    FAQs

    How does technology help finance?

    The impact of technology on financial services allows the customer to avail of easy digital transactions.

    How does technology affect the financial industry?

    The arrival of smart analytics helps the financial industry to understand its customer better and provide services accordingly.

    What are the new financial technologies?

    Blockchain, Robotics, Artificial Intelligence, Cryptocurrency, and many more.

    Is Chime a legit company?

    Yes as they’re FDIC insured, so it’s a safe place to keep your money.

    What are the top Fintech companies?

    Square, PayPal, Goldman Sachs, Green Dot, MercadoLibre, and many more.

    Do FinTech companies pay well?

    Yes, the USA is the top earner making $169,000 annually.

    Is Fintech a good career?

    Fintech would be considered a good career opportunity for people who are seeking to build their career in the field of finance domain.

    Which is the largest Fintech company in the world?

    Ant Financial.

    How do banks use Fintech?

    Banks are using fintech technology in the form of mobile banking apps.

    What are Fintech tools?

    Artificial Intelligence, machine learning, mobile computing, and more enable borrowers to access funding.

  • CredAble Startup Story: An en-Abler of Working Capital

    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 CredAble.

    CredAble provides working capital and related liquidity programs for enterprise supply chains, leveraging its trade finance expertise, partnerships with capital providers, and its world-class technology platform. Founded by Nirav Choksi, Rajiv Ramnarayan and Ram Kewalramani, the goal of this fintech startup is to make ‘CredAble’ synonymous with ‘Working Capital’ and hence the mission statement is Think Working capital… Think CredAble.

    Since its inception in 2017, CredAble has enabled in excess of INR 6,000 crores and more than 11,000 borrowers covering over 100,000 transactions with 0% NPAs. This has culminated as an outcome of the team’s single-minded focus on execution. CredAble aims to disburse in excess of USD 1 billion per month going to USD 2 billion per month.

    StartupTalky interviewed the co-founders, Nirav Choksi & Ram Kewalramani to get insights on the Success Story and Growth Hacks of CredAble. Know all about CredAble funding, founders, business and revenue model, how it started, marketing strategies, and more.

    CredAble – Company Highlights

    Startup Name CredAble
    Founders Nirav Choksi (CEO), Ram Kewalramani (MD) and Rajiv Ramnarayan (Founding Partner and Board Advisor)
    Headquarters Mumbai
    Founded 2017
    Industry Fintech
    Funding $58.59 mn (August 2022)
    Current Team Size 112+ (as of August 2022)
    Website credable.in

    About CredAble – Mission & Vision
    CredAble – Products/Services Offered
    CredAble – Industry Details
    CredAble – Founders & Team
    CredAble History – How it Started?
    Launch of CredAble
    CredAble – Name, Tagline and Logo
    CredAble – Business Model & Revenue Model
    CredAble – Marketing Strategies
    CredAble – Funding and Investors
    CredAble – Growth and Revenue
    CredAble – Challenges Faced
    CredAble – Competitors
    CredAble – Recognition and Achievements
    CredAble – Future Plans

    About CredAble – Mission & Vision

    CredAble provides working capital and related liquidity programs for enterprise supply chains, leveraging its trade finance expertise, partnerships with capital providers, and its world-class technology platform.

    The goal is to make ‘CredAble’ synonymous with ‘Working Capital’ and hence the mission statement is think Working capital… think CredAble.

    CredAble’s vision is to create holistic financial inclusion that would triple the availability of working capital, wherein the ripple effect has a significant growth in India’s GDP.

    The co-founders of CreAble highlight the Culture Statement of the company – “There are 6 Core Culture statements that we at CredAble completely align to and this is how we stay on our Mission”, said they:

    1. We are Audaciously breaking boundaries
    • Proposing ‘out of the box’ solutions to customers
    • Solving big problems that matter

    2. We are humbled

    • By the partnership and support of our shareholders
    • By the opportunity to make a difference in this world

    3. We are Generous

    • We give ourselves fully
    • We share our knowledge and insights freely with all

    4. We are enablers of Context to Content

    • We are aware of ‘Why’ of ‘What’ we do every day
    • Create a Powerful contextual relationship

    5. We set the measure

    • Set the benchmark of excellence in everything we do
    • Highest standard of customer and employee satisfaction

    6. We are responsible

    • For fulfilling our purpose
    • For transformation of our society and environment

    Tools used by CredAble to run CredAble

    CredAble – Products/Services Offered

    CredAble’s focus is to expand financial inclusion for the MSME base through its solutions like:

    1. Post-Invoice Early Payment Program enables all suppliers, irrespective of size and stature, to get working capital against their invoices in exchange for a discount. These discounts are derived using CredAble’s proprietary credit assessment model that takes into consideration multiple data points, thereby, enabling the vendor to get access to working capital at their respective bankable rates. The program is designed for vendors to avail working capital on tap without collateral and recourse.
    2. Just in Time (JIT) Financing is a pre-invoice financing program designed to bridge the gap between payment obligations and receivables from Corporate. It is based on the occurrence of ‘billable events’ and funding milestones like Purchase Order, Proof of Delivery, Goods Received Note, Goods Acceptance Note, or client-approved MIS. CredAble’s platform automates financing and real-time tracking of such transactions.
    3. Financial inclusion through tokenization enables access to working capital for multi-layer supply chains encompassing vendors and sub-vendors. Each series of tokens issued through the CredAble platform represents an underlying invoice value and has a finite expiration period. Tokens can be encashed at any point by vendors and sub-vendors up to expiration at their specified cost of finance. This is enabled through CredAble’s proprietary platform which digitizes the entire process right from issuance to settlement. A first in the Indian industry.

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    CredAble – Industry Details

    CredAble is focused on enabling working capital for India Inc. Currently, there is a USD 75 billion working capital gap in India. Furthermore, there are approx. 75 million MSMEs, of which, only 16% have access to formal credit, thereby, creating a USD 350 billion credit gap.

    The Covid 19 pandemic only exasperated the MSME sector, as major financial institutions such as banks started to reduce their MSME credit lines and diverted the same to large corporates, which further fueled the need to create financial inclusion for the MSME segment. With India’s current quarter-on-quarter GDP growth rate at 1.6% for FY 2021-22, of which the MSME contribution is approximately 30% will further fuel the requirement of working capital for India Inc.

    Fintechs such as CredAble will become the backbone for working capital availability for India Inc going forward.

    CredAble – Founders & Team

    Nirav Choksi, Ram Kewalramani and Rajiv Ramnarayan are the founders of CredAble.

    CredAble Team
    CredAble Founders and Team

    Nirav Choksi | Co-Founder & CEO, CredAble

    He has been an entrepreneur for almost 25+ years and has incubated and scaled businesses raised debt and equity financing, and built multi-disciplinary global teams in the areas of technology, private equity, and international commodities. Nirav heads the Sales, FI Coverage, Tech & Human Capital functions at CredAble.

    Prior to CredAble, Nirav co-founded and led Equentia Natural Resources Pte Ltd., a multi-commodity trading and structured finance company with offices in Singapore, Jakarta, Dubai, and Mumbai. ENR is amongst the top 5 importers of Indonesian Thermal Coal for the private sector in India with revenues in excess of $500 Million a year and trading volumes of over 10 Million MT. ENR also has a significant structured trade finance and debt arbitrage operation. Prior to that Nirav has founded several companies in the internet and technology space and has had 3 successful exits. He is an active early-stage investor in tech-enabled consumer-led ventures and has invested in over 25 opportunities. Nirav studied computer science and economics at the University of Michigan.

    Ram Kewalramani | Co-Founder & Managing Director, CredAble

    He has had a career spanning over 18 + years working in leadership positions. Ram has gained invaluable insight and expertise in the domains of Investment Banking, Marketing, Finance, and Operations. As an acknowledged veteran of the Employee Transportation industry, he brings valuable industry insights, experience, and connections to further the establishment of the vision behind CredAble. Ram heads the Fincon, Credit Risk & Risk Operations functions at CredAble.

    Prior to founding CredAble, Ram spent 14 + years in investment banking and P&L leadership capacities. Previously, he was a shareholder and CEO of People Premier Logistics, a successful employee transportation business. Prior to becoming an entrepreneur, Ram was an investment banker with Centrum Capital and Grant Thornton.

    Rajiv Ramnarayan | Founding Member and Board Advisor, CredAble

    Rajiv Ramnarayan acts as a Founding Member and Board Advisor of CredAble. Ramnarayan has completed a BEng. (Hons.) in Electronic Engineering from Sheffield Hallam University. Starting as an Industrial Trainee with IBM, Ramnarayan has served as a Business Development Associate at Laing O’Rourke, a Partner at Doehle Danautic Logistics, and is still serving as a Co-Founder and CEO at Equentia Natural Resources Pte Ltd.

    Current Company Size, Work Culture & Hiring Funda –

    CredAble values employees like the way it values its clients and strongly follows the below-mentioned culture statements:

    • We are Audaciously breaking boundaries
    • We are humbled
    • We are Generous
    • We are enablers of Context to Content
    • We set the measure
    • We are responsible

    At CredAble, the hiring process is efficiently streamlined to ensure to hire the right talent for the right job. They have detailed BEI interviews both at the Functional & HR interview evaluation stages. The CredAble team currently consists of a 51-200 member workforce.

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    CredAble History – How it Started?

    The founders in their previous avatar, have had a great deal of exposure to the working capital gap in India. Nirav, who comes with over 25 years of work experience across IT Services, Commodity trading, Trade Finance, was dealing with banks to create structured trade finance flows for his trading business. Ram, who comes with over 18 years of work experience, was the CEO of a large logistics business which required him to constantly focus on raising working capital, but always found it difficult given the traditional approach used by banks and NBFCs. This amalgamation of experience made both the founders believe that they were the most pertinent people to co-create programs that would enable working capital for India inc.

    CredAble started its journey to enable working capital within the logistics sector. The product was split into two categories namely JIT financing and post invoice financing. This permutation & combination of the product reduced the cash-to-cash cycle of the logistics borrowers from an average of 110 days to under 24 hours! All of this was enabled through technology without any human intervention. Once this model was proven, these offerings were expanded to multiple sectors.

    Their initial conversations were with CFOs/procurement heads of large corporates who were extensively outsourcing their logistics requirements and were facing multiple challenges from their vendors, who were unable to cope with the clients’ requirements due to the shortfall of working capital. With the validation from the success of these programs, CredAble’s model expanded to include all types of vendors and not only logistics vendors.

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    Launch of CredAble

    The team’s strategy has always been to enable working capital using the Anchor down approach wherein they were looking to tie up with large corporates to enable working capital for their entire supply chain ecosystem.

    While it was a new concept in India, the founders were extremely confident of the programs and value add that they were creating for all the stakeholders. The initial approach was to reach out to all connections and showcase CredAble’s value proposition. While the response was positive the preliminary movement was slow. As they demonstrated the impact, there were higher levels of acknowledgment & acceptance which catapulted CredAble’s outreach. Word of mouth quickly enabled CredAble to onboard multiple large and multi-national clients.

    “While we have a large coverage team as well as partnerships, our largest clients have been converted through existing referrals and word of mouth”  Co-founders of CredAble added.

    Since its inception, CredAble has enabled in excess of INR 6,000 crores and more than 11,000 borrowers covering over 100,000 transactions with 0% NPAs. This has culminated as an outcome of the team’s single-minded focus on execution.

    CredAble – Name, Tagline and Logo

    Given the focus of the business was to “enable credit” the name CredAble was apt.

    The tag line – We Must because…. We Can, symbolizes the company’s approach – “Nothing is impossible as long as we believe we can!!!” In order to change the existing traditional mindsets, the first step is to believe we can.

    CredAble Logo
    CredAble Logo

    While they were designing the logo it was important that all stakeholders understand who they are and what they do. The emphasis of ‘A’ in CredAble is to showcase it as –

    1. An en-Abler of working capital, and
    2. To depict upward growth “↑”. This in turn would create an impact not only for India Inc but the GDP as a whole.

    CredAble – Business Model & Revenue Model

    CredAble is a B2B supply chain finance company that develops partnerships with corporate entities to “extend a scalable supplier and dealer/distributor financing platform.”

    The CredAble revenue model is a fee-based model. Here, we should understand that CredAble doesn’t levy any fixed, upfront or registration costs for either the corporate or their suppliers and distributors. Besides, the company’s own NBFC also participates in some of its supply chain financing programmes, which helps create a yield-based income.

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    CredAble – Marketing Strategies

    CredAble’s Marketing campaigns have been holistic in approach with key properties introduced to cater to each business need.

    Some of its well-received marketing properties include –

    • Insights by CredAble – It takes interesting popular concepts in today’s day and age, and tries to come up with its working capital assessment for people to understand its importance and potential. CredAble’s recent coverage on IPL working capital was well-received (One can get more information on CredAble Case studies here –  credable.in/credable-case-studies/)                  
    CredAble Marketing
    An excerpt of CredAble’s recent coverage on IPL working capital
    • Candid by CredAble – In this interesting talk show, CredAble’s CEO and host Nirav Choksi talks to industry leaders within enterprise ecosystems to get into their thought process, it’s fun and engaging content filled with interesting anecdotes. This has gained traction and the company has already rolled out 3 episodes.
    • Working Capital 101 – The company deems it to be its responsibility to share knowledge around new concepts around working capital which can be very helpful for businesses. Hence, as a step – it launched working capital 101 under business insights which churn out content weekly around helpful concepts around working capital and financing.
    CredAble Working Capital 101
    • Extensive organic marketing initiatives on professional social media platforms like LinkedIn for both Talent & the organization success stories.
    • Product Explainer videos to educate CFOs, Vendors, Banks, Financial Institutes on how CredAble programs have been enabling working capital.

    “The success of our marketing lies in growing organically and giving tangible results to our clientele” as said by the founders of CredAble.

    CredAble – Funding and Investors

    CredAble last raised $9 mn from a Corporate Round on August 2nd, 2022, led by Axis Bank and OAKS Asset Management. CredAble last raised around $30 mn in its Series B funding round led by Plutus Wealth Management and the existing investor, OAKS Assets Management (formerly known as Alpha Capital).

    The company has raised $58.59 mn so far, which includes its bridge round worth $4.42 mn (Rs 33.18 cr) in October 2020, its Series A round of $12.59 mn (Rs 100 cr), and its primary seed round of $2.5 mn.

    Date Name of the Funding Round Deal Value Lead Investors
    August 2, 2022 Corporate Round $9 mn Axis Bank and OAKS Asset Management
    October 19, 2021 Series B OAKS Asset Management and Plutus Wealth Management
    October 29, 2020 Series A –
    June 12, 2018 Series A Alpha Capital
    March 17, 2017 Seed Round –

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    CredAble – Growth and Revenue

    Starting with 3 employees, initially, when it was launched in March 2017, CredAble now has somewhere between 51-200 employees, which indicates that it has grown strong year-on-year. CredAble’s employee count rose to 12 by March 2018, and with the passage of another year, this went up to become 70 employees.  

    CredAble went live in October 2018, and since then, it has processed Rs 300 crore+ worth of transactions on a monthly basis. Furthermore, CredAble boasts of boarding more than 100 corporate customers, 300K+ small business borrowers, and 30+ financial institutions as well as banks on its platform. CredAble has witnessed 500% YoY growth, as per the platform’s statements.  

    CredAble’s total income has been reported to be registered at Rs 8.35 crore in FY22, which earlier stood at 2.46 crore in FY21 and Rs 27.64 crore in FY20.

    CredAble – Challenges Faced

    “It was a new concept and hence took time to be understood and accepted. The solutioning aptitude versus selling a product worked well for us to showcase the value we created to make working capital accessible to all” Co-founders of CredAble added.

    CredAble, as an early-stage business, has had its own challenges along the way. Fostering a widespread acceptance of the non-traditional supply chain finance programmes, long sales cycles, long turnaround time in technology integration and others of CredAble, was tough indeed.

    “However, customer acquisition follows a domino effect on our business. After securing our first few clients, which took a bit of time, the rest have started to follow at a much faster pace,’ added the Co-founder of CredAble.

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    CredAble – Competitors

    Competitors of CredAble are:

    • CreditFair
    • ZestMoney
    • Aye Finance
    • KredX
    • Taulia
    • Demica

    CredAble – Recognition and Achievements

    • The Fintech and Deep Tech categories at NASSCOM Emerge 50 Awards 2020
    • The Best Supply Chain Finance Solution of the Year 2019 at the Inflection 2019, a leading supply chain summit.
    • The Oracle Startup Cloud Accelerator Program 2018
    • SAP Startup Studio Cohort 2020
    • The Best FinTech Startup 2018 at by the Maharashtra Government

    CredAble – Future Plans

    The future plan is to cover all aspects of Working Capital by the means of enabling true financial inclusion for millions of MSMEs. “We are already covering all metro cities within India and have set up business teams to increase our outreach. The goal is to disburse in excess of USD 1 billion per month going to USD 2 billion per month” the Co-founders of CredAble mentioned.

    FAQs

    What is CredAble?

    CredAble provides working capital and related liquidity programs for enterprise supply chains, leveraging its trade finance expertise, partnerships with capital providers, and its world-class technology platform.

    Where is the headquarters of CredAble?

    The CredAble headquarters are located in Mumbai, Maharashtra, India.

    Who are the founders of CredAble?

    Nirav Choksi, Ram Kewalramani, and Rajiv Ramnarayan are the founders of CredAble.

    What is CredAble’s tagline?

    CredAble’s tagline – We Must because…. We Can, symbolizes the company’s approach – “Nothing is impossible as long as we believe we can!!!” In order to change the existing traditional mindsets, the first step is to believe we can.

    How does CredAble make money?

    • Early – Fees percentage over the savings generated for the Anchor.
    • Lending – Net Interest Margin and upfront processing fees on the Asset Under Management (AUM)

    Who is the CEO of CredAble?

    Nirav Choksi is the Co-founder & CEO of CredAble.

    How much funding has CredAble raised?

    CredAble raised $58.59 mn in funding to date, as of August 2022.

  • List of All the Startups Acquired by Cred

    Cred is a popular fintech company founded by Kunal Shah in 2018. It is a reward-based credit card payments startup. Recently, Cred raised $80 million in its latest funding round at a $6.4 billion valuation. Even after making a loss of Rs 524 crore in FY21 why is this company getting so many investors? Is Cred more than just a credit card payment app?

    To find answers to these questions let’s see what acquisitions Cred has made in recent times. This will give us a clear idea of the future plans of Cred.

    HipBar
    Parfait Finance and Investment
    Happay

    HipBar

    HipBar Logo
    HipBar Logo

    In October 2021, Cred acquired HipBar, an alcohol delivery and payment startup. Cred was interested in this deal because HipBar has a prepaid payment instrument license (PPI).

    Now, what is PPI? It is a prepaid payment instrument that allows the payment of goods and services, including fund transfers against the value stored on the prepaid card. RBI has issued this license to only 37 firms in the country.

    Using the PPI licence, Cred can issue cash vouchers and prepaid cards and can facilitate digital wallets for the Cred community.

    Cred’s holding firm Dreamplug Technologies has held the share capital of Prasanna Natarajan, founder and CEO of HipBar and Rajalakshmi Natarajan, co-founder and director of HipBar.

    Kunal Shah and his brother Rohan Shah have joined the board of HipBar as directors. Rajalakshmi has resigned from the company. Although Prasanna is still a director.

    With this acquisition, Cred will now directly give cashback to the user’s wallet instead of their bank accounts. Users can then use the wallet to pay credit card bills and purchase products from its merchant partners.

    This is a smart strategy by the company to make the customers stay connected with their ecosystem.

    “It appears to be a smart move as the wallet would enable CRED to drive repeat transactions through its own payment instrument,” said one of the entrepreneurs who doesn’t want his name mentioned in the article.

    Parfait Finance and Investment

    In November 2021 Kunal Shah acquired a non-banking finance company, Parfait Finance and Investment. RBI has approved this acquisition and it will help the company to extend its lending services to its users.

    This acquisition is part of Kunal Shah’s plans to provide a range of financial services to its exclusive Cred community. The company is already providing loans through a partnership with IDFC First Bank.

    The company has also launched Cred Mint by partnering with LiquiLoans, an RBI-registered P2P non-banking lender. Cred Mint allows users to lend money to other Cred users.

    The company has also applied for a payments aggregator license. Using this license Cred can process the payment of merchants with consumers online. The merchants can accept payments in the form of debit cards, credit cards, e-wallets, or bank transfers.

    The payments aggregator license will help Cred to enable e-commerce on its platform.

    Happay

    Happay Logo
    Happay Logo

    In December 2021, Cred acquired Happay, a corporate expense management platform, in a cash-and-stock deal at a valuation of $180 million.

    Happay is a business expense, payments and travel management platform that manages work-related expenses for over 1 million users globally.

    This deal allows Happay to work as a separate company but its employees will work closely with Cred to help the company scale its business and add new financial services for the Cred users.  

    The 230 member team of Happay will get all the benefits that the employees of Cred get, including its ESOP program.

    “The move will bring in synergies between Cred, the majority of whose members are professionals who use it to manage personal payments across multiple credit cards, and Happay, the only unified platform for business expenses, payments, and travel bookings,” a statement by Cred said.

    Happay’s in-house payments system will help the Cred users to manage their expenses on their credit cards.

    “With professional expenses forming a significant portion of credit card spends, bringing professional expense management into the Cred ecosystem is a natural extension of our proposition,” Kunal Shah said.

    Conclusion

    As you can see Kunal Shah is making Cred future ready. The company is unveiling multiple revenue verticals in the form of house rental payments, lending and wallet payment business along with e-commerce.  

    These acquisitions show us that Cred in the future might become a banking institution for its exclusive users. It will make the platform an irreversible ecosystem for its exclusive Cred community.

    FAQs

    How many startups Cred has acquired?

    In total, Cred has acquired 3 startups. HipBar, which is an alcohol delivery and payment startup, Parfait Finance and Investment, which is a non-banking finance company and Happay, is a corporate expense management platform which will allow users to manage their expenses on their credit cards using the Cred app.

    Is Cred approved by RBI?

    The services that Cred offers to its users do not require the approval of RBI. The credit score of the users is verified by a credit rating agency which is also authorized by the RBI.

    Is Cred a unicorn startup?

    Cred entered the unicorn club in 2021 after raising $215 million in funding, at a post-money valuation of $2.2 billion.

  • muvin: India’s Teen-centric Pocket Money App

    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 muvin.

    Neobanking services are revolutionising both the financial and Fintech sectors in India. Fintech ecosystem is gearing towards better usage of Artificial Intelligence and improving customer satisfaction with popular neobanks in India like- RazorPayX, Jupiter, and Kotak811, to name a few. muvin is an emerging startup that enables a seamless experience for teens which includes pocket money management, financial literacy, and understanding savings from a young age, amongst others. It is a pocket-money app that encourages children to learn to manage finances.

    Read the startup story of muvin and know about its founders, business model, challenges, and growth.

    muvin – Company Highlights

    Startup Name muvin
    Headquarters Bengaluru
    Industry Fintech
    Founder Mukund Rao and Vineet Gupta
    Founded 2020
    Total Funding Raised $4.5 Million
    Website muvin.in

    muvin – About
    muvin – Industry
    muvin – Founders and Team
    muvin – Startup Story
    muvin – Name, Tagline, and Logo
    muvin – Vision
    muvin – Products
    muvin – USP
    muvin – Business and Revenue Model
    muvin – Customer Acquisition
    muvin – Customer Retention Strategy
    muvin – Challenges Faced
    muvin – Funding
    muvin – Growth

    muvin – About

    As India’s teen-centric pocket money app, muvin, offers a safe & secure platform to conduct online & offline transactions in an effortless manner- through its wallet, physical prepaid card and industry’s first RuPay powered contactless keychain.

    While parents/guardians can create an account to enable their dependents/children with an independent wallet, muvin also empowers India’s college going students to set up their own wallets to conduct transactions.

    As part of their focus on amplifying financial literacy amongst India’s teens, the muvin app offers an exhaustive library of enriching content to demystify concepts related to managing finance. They have onboarded Monika Halan, an entrusted Author and Speaker to curate and address theme-based topics in an easy, fun, and simplified manner. From taxes to what banking truly is, muvin is covering the fundamentals and more via rich byte-sized video and short blogs that are relevant for teens.

    muvin – Industry

    With new players entering this space, teen-centric pocket money apps and neobanks have become a competitive digital banking landscape in a short period of time. The space has grown exponentially in the last five years. In terms of transaction value, the Indian Neobanking ecosystem is expected to clock US$47.94bn in 2022 setting the foundation for substantial growth potential in the coming years.

    muvin – Founders and Team

    Mukund and Vineet have known each other for over 20 years from their time at Mindtree in the early 2000’s. They share a passion for enabling access to banking services for the youth and believe that finance is a life skill that everyone should acquire by the age of 21.

    Mukund Rao, Co-founder

    Mukund Rao, Co-Founder, muvin

    Mukund is an accomplished business leader with experience across financial services and technology. Former Capital Markets Head at Mindtree, Mukund founded derivIT in 2007 and grew it across 7 countries with a team of 400+ employees. He subsequently exited derivIT to Luxoft in 2017.

    After graduating from Bangalore University, he pursued his MBA from Ecole des Ponts Business School.

    Vineet Gupta, Co-founder

    Vineet Gupta - Co-founder of muvin
    Vineet Gupta, Co-founder, muvin

    Vineet has over 25 years of experience spread across technology and financial businesses, driving innovation and digital business models. Vineet moved on from Mindtree in 2015 after building out their Digital Business and subsequently founded a tech enabled NBFC focussed on business credit.

    He graduated from IIT-Delhi and went on to pursue his MBA from IIM-Lucknow.

    While both co-founders are actively engaged in all aspects of the business, Vineet looks after the Product, Operations, Finance & Technology functions at muvin, while Mukund looks after Marketing, Strategy and Business Development functions.

    muvin – Startup Story

    Despite India’s adoption of digital banking and contactless payments, the digital native generation still conducts over 80% of their transactions in cash. Both the co-founders, Mukund and Vineet, have teenage children who were using cash or their cards while spending money. They found the process of opening bank accounts for their kids and teaching them how to operate it within the restrictions on bank ATM/debit cards, rather cumbersome. The most common resort for parents like them was to hand over pocket money to their children. No wonder, teens often end up entering adulthood with little or no knowledge of financial management.

    They saw an opportunity in enabling digital payments and offering financial products for this young consumer base- in an easy-to-understand, intuitive and friction-free manner. This is how muvin came into being.

    They validated the hypothesis by empanelling Ipsos to conduct independent primary research of children and parents across 8 cities.

    muvin logo
    muvin logo

    muvin is a play on the word “moving”, where they would like their target audience to get moving and keep moving. The co-founders of muvin believe that Gen-Z is always on the go and they would like teens to get moving with their financial lives as soon as possible. The tagline, “payments for students”, addresses their audience and the core functionality of muvin, thereby avoiding any ambiguity.

    muvin – Vision

    muvin’s vision is to empower India’s 250 million youth with digital financial inclusion and financial literacy. muvin is unwaveringly moving forward in positioning the management of personal finance as an essential life skill and the need to inculcate it from an early age. muvin believes that India’s teens must be empowered to experience independence in their financial transactions and decisions in their day-to-day life.

    muvin – Products

    Bolstered by the pandemic, there has been widespread adoption of digital banking and contactless payments across the country which led to a permanent shift towards wallets, contactless cards, digital payment apps and other financial products. However, over 250 million teenagers and young adults in India are still precluded from not just financial education but banking services as well, conducting the majority of their transactions in cash. Gen Z are becoming financially aware and independent a lot earlier than a few decades ago. Pocket money apps for the teens are ideal in addressing their financial needs.

    Deployment of new-age technologies like AI, big-data analysis and cloud computing is helping it to offer an easy-to-understand, intuitive, friction-free and education-powered experience to the teens.

    muvin has partnered with the parent community towards its larger vision of amplifying financial literacy amongst India’s digitally savvy teens. It has also understood some other critical issues that matter to parents, such as tracking of their household expenditure.

    Parents now have the freedom to transfer pocket money allowance (one time /scheduled weekly / monthly) directly in their child’s wallet who can then spend the money through the app or through their own prepaid card. Parents no longer have to stress over tedious banking roadblocks. Monitoring their child’s spending habits was never this easy.

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    muvin – USP

    These are early days for teen-centric apps and they are in the first lap of a marathon. It is a new category and competition helps in both, creating and growing awareness about the product’s relevance and need amongst the key target user base. All the market players are addressing varied gap areas through their products, services and customer experience.

    muvin is the first pocket money app to offer a RuPay co-branded keychain targeted at India’s teens. The keychain presents the most convenient and secured contactless payment mode with a simple ‘tap and pay on-the-go’ feature. The contactless keychain can be used across all RuPay NFC enabled merchants for fast processing and seamless transaction experience each time.

    muvin also offers chat based banking on their website and whatsapp without the need of downloading the app. This allows customers to check their balance, view recent transactions, block their card etc.

    muvin – Business and Revenue Model

    There are no charges levied on customers for using the muvin services. muvin makes money from the interchange fees incurred by the merchant for card based transactions. Within the first six months of its product launch, muvin witnessed over 150,000 installs. Currently, the figures stand at approximately 50k app downloads every month.

    muvin – Customer Acquisition

    muvin’s journey started with the launch of its app and the ‘muvin card’ for teens in October 2021. In the same month, muvin onboarded Ace cricketer Hardik Pandya as their brand ambassador to propel its multi-channel marketing campaigns- a move which helped the brand to garner immediate attention and much-needed impetus from its target customers.

    Teens need validation and approval from their parents/guardians and since its inception, muvin is consistently engaging with the parent community. Parents need to be assured on the trust front. muvin’s partnership with industry prominent players like RuPay has also helped it to strike a trust-worthy chord with the parents. Imparting financial responsibility as a trait has to be a consistent and an on-going approach. Parents are appreciating the educative, short videos and blog format content for their children which muvin offers on its digital platform. The early adopters of the muvin app have played an important role in expanding its reach amongst newer adopters.

    muvin has adopted a multi-pronged approach in reaching out to potential customers. Developing a strong presence on social media has been key to building the muvin brand, as this is where Gen-Z spends a high percentage of their time. muvin is building itself out to be a young brand that teenagers can approach as an elder sibling or friend. They have also curated financial content in byte sized formats that is easy to understand and comprehend in under a minute. They have also partnered with multiple brands to serve their customers with offers and cashbacks relevant to their age group.

    muvin – Customer Retention Strategy

    To drive retention, muvin has partnered with multiple brands to serve their customers with offers and cashbacks relevant to their age group. They also run engaging contests and offers on the app which are refreshed on a weekly basis to keep their customers and audience engaged consistently. Through their insights led customer engagement platform and social media channels, they keep their users updated on the latest happenings on the app.

    muvin – Challenges Faced

    Neobanks and teen-centric pocket money apps like muvin have carved a niche category to address crucial consumer pain points which had not been addressed before. They have consistently channelised their energies to get their key consumer audience to shift from cash to digital transactions- which still continues to be a challenging affair.

    Players like muvin get to interact with their customers digitally only which makes trust building especially amongst digital-savvy parents, a tedious and slower process. This requires utmost transparency and in this regard, muvin’s partnership with RuPay has helped them tremendously.

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    muvin – Funding

    Date Stage Amount Investors
    January 2022 Pre-Series A $3 Mn Alteria Capital and Krishna Bhupal, Co-Founder, Rational Pricing Technologies and board member of GVK Power & Infra
    April 2021 Seed $1.5 Mn HNI’s Krishnakumar Natarajan (Managing Partner, Mela Ventures), Ambar Maheshwari (CEO, IndiaBulls Asset Management), Gani Subramaniam (Partner, WRVI), Shajikumar Devakar (Executive Director, IIFL Asset Management Limited), Sandeep Jethwani, and others

    Earlier in January 2022, muvin raised USD 3 million in a pre-Series A round which was led by WaterBridge Ventures, with participation from India’s largest Venture Debt fund Alteria Capital and Krishna Bhupal, Co-Founder, Rational Pricing Technologies and board member of GVK Power & Infra.

    Prior to that in April 2021, muvin raised a seed round of $1.5+ million from HNI’s Krishnakumar Natarajan (Managing Partner, Mela Ventures), Ambar Maheshwari (CEO, IndiaBulls Asset Management), Gani Subramaniam (Partner, WRVI), Shajikumar Devakar (Executive Director, IIFL Asset Management Limited), Sandeep Jethwani, and other prolific angel investors from the financial services industry.

    muvin – Growth

    muvin’s platform caters to India’s teens spread across leading cities in India. The brand is gearing towards engaging with one million registered users in the next 12 months. Its ambition is to enable 100 million financially literate students in the next 10 years- prepare them to confidently make the right financial choices by the age of 25 years.

    With regular communication and feedback from their early adopters, muvin team plans to steadily enhance its product and introduce new features over the next two-three quarters that will substantially upgrade their users’ experience. To achieve additional scale, muvin is open to raising an additional round of funding towards the later half of this year.

    FAQs

    When was muvin founded?

    muvin was founded in 2020.

    Who is the founder of muvin?

    Mukund Rao and Vineet Gupta are the founders of muvin.

    Has muvin raised funding?

    Yes, muvin has raised a funding of $4.5 million.

    Is muvin app available on Google Play store?

    Yes, muvin app is available on the Google play store and Apple app store.

    Who is the brand ambassador of muvin?

    Hardik Pandya is the brand ambassador of muvin.

  • MoonPay – Democratizing Cryptocurrency Through Its Investment Platform

    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 Moonpay.

    The Public’s faith in crypto has exploded in the meantime. It’s a major topic not only among investors but also in mainstream culture, owing to everyone including long-time investors like Elon Musk to that youngster from high school on Twitter.

    Merchants may accept crypto-based payments for a variety of goods and services thanks to technology-based crypto payments and fraud protection solutions. For debit and credit card transactions, it also has a worldwide monetary onramp. It allows businesses to accept cryptocurrency payments for a variety of products and services.

    MoonPay is a fintech startup that develops a cryptocurrency payment system. Its on-and-off-ramp line of products allows users to modify between government-issued currency and cryptocurrencies using different payment methods, including credit and debit cards, Apple Pay, Google Pay, Samsung Pay, and local bank transfers, MoonPay accepts payments, fights fraud in over 160 countries, and is used by 300+ prominent wallets, websites, and applications. The firm was created in 2019 and is situated in Miami, Florida.

    Read this article further to read more about MoonPay.

    MoonPay – Company Highlights

    Startup Name MoonPay
    Headquarters Greater Miami Area, East Coast, Southern US
    Industry Financial Services, FinTech, and Mobile Payments
    Founders Victor Faramond and Ivan Soto-Wright
    Founded 2018
    Launched March 2019
    CEO Ivan Soto-Wright
    Website moonpay.com

    MoonPay – About and How it Works?


    MoonPay – Industry
    MoonPay – Name, Logo, and Tagline
    MoonPay – Founders
    MoonPay – Startup Story
    MoonPay – Vision, and Mission Statement
    MoonPay – Business Model
    MoonPay – Catering Celebs
    MoonPay – Funding, and Investors
    MoonPay – Investments
    MoonPay – Growth
    MoonPay – Competitors
    MoonPay – Challenges Faced
    MoonPay – Future Plans

    booming NFT sector. MoonPay was founded in 2019 with a single goal in mind: to accelerate the usage of cryptocurrencies. Only with 2 young co-founders – Ivan Soto-Wright and Victor Faramond – the firm set out to design a secure and very simple software solution that would allow individuals from all around the world to engage in the largest tech transformation since the world wide web.

    MoonPay is a popular solution among both ordinary investors and celebs because of its ease. As per the company’s website, the platform has over 10 million active users in 160 countries and has processed about $3 billion in transactions.

    When non-fungible tokens or NFTs first became popular, MoonPay was the go-to payment provider. Users might buy their favourite NFTs without having to worry about cryptocurrency. When celebrities began purchasing artworks from the renowned Bored Ape Yacht Club NFT collection, the platform acquired even more traction.

    In a traditional exchange, you’d need to first get a wallet, then add an appropriate amount of cryptocurrency, and then complete the transaction – a simple but time-consuming operation. The procedure is significantly simpler using MoonPay. All that is required of the user is to set a budget. MoonPay then calculates a baseline price for the digital asset using its uncommon tools.

    MoonPay takes care of purchasing the needed cryptocurrency, then purchasing the tokens and billing the consumer.

    “We’ve tried to make it as similar as a process as you would be interacting with your private bank,” says Ivan Soto-Wright, the CEO of MoonPay. “You basically generate an invoice, you wire money for that invoice, and then we settle the transaction,” he explained.

    MoonPay – Industry

    One of the names used most frequently for research in the finance sector nowadays is “financial technology.” FinTech, or financial technology, is the application of cutting-edge contemporary technology to the world of money. It mostly makes use of disruptive and creative technologies to deliver financial services. By offering innovative and safe financial services, fintech startups met the demand for increased security from investors. The desire for more economical financial services that offer accessibility and a faster speed might be cited as the second factor in the development of financial technology.

    In 2021, the market had a value of USD 112.5 billion. By 2028, the scope of the global fintech market is predicted to be USD 332.5 billion, and it is projected to expand at a 19.8% compound annual growth rate over that time.

    The market is primarily driven by growing connectivity with the ecosystem of the financial services industry, growth in the market cap of cryptocurrencies, and ICOs. This technology facilitates quicker transfers and lowers operating costs. Uncertainty over the regulatory frameworks and standards enforced by the system is the main constraining issue for the fintech market. Furthermore, the financial sector’s use of digital technologies is expanding quickly.

    The globe has seen the emergence of new financial technology innovations including mobile money, peer-to-peer or marketplace financing, insurance technology (insur-tech), Robo-advice and crypto-assets. Markets might become more varied, fair, effective, and equitable as a result of these advances, but concentration levels could also rise. Especially in developing and transition countries, innovation has boosted inclusiveness and brought about competitiveness.

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    MoonPay – Name, Logo, and Tagline

    MoonPay Logo
    MoonPay Logo 

    MoonPay’s tagline says, “Crypto just got easy.”

    MoonPay – Founders

    MoonPay was founded by Victor Faramond and Ivan Soto-Wright in March 2019.

    Victor Faramond

    Victor Faramond - Co-Founder of MoonPay
    Victor Faramond – Co-Founder of MoonPay

    Victor serves MoonPay as its co-founder and chief technology officer. Victor has extensive experience in developing both front-end and back-end systems for cutting-edge websites. He has previously worked in Apple, Merck KGaA, and Skello.

    Ivan Soto-Wright

    Co-Founders of MoonPay - Ivan Soto-Wright
    Co-Founder of MoonPay – Ivan Soto-Wright

    Ivan is the co-founder and chief executive officer of MoonPay. Ivan is an investor, entrepreneur, and early adopter of financial technology. Ivan graduated from George Washington University with a bachelor’s degree in Economics with Special Honors. At St. Anne’s College, University of Oxford, he also studied philosophy, politics, and economics. Ivan used to work for Redington.

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    MoonPay – Startup Story

    With just one goal in mind in 2019, Ivan Soto-Wright and Victor Faramond, the company’s two co-founders, set out to build a simple and secure software solution that would allow users from all over the world to take part in the largest digital revolution since the internet, which resulted in the foundation of MoonPay.

    Just two and a half years later, in November 2021, MoonPay completed its Series A investment round with a valuation of $3.4 billion, making it the largest and most valued Series A for a bootstrapped cryptocurrency startup. The firm is using this financing to continue in international expansion and top-tier personnel, as it maintains its extraordinary rate of growth.

    Investment in the start-ups driving the sector is flourishing in venture capital as the price of cryptocurrencies such as bitcoin has recently reached all-time highs. After the massive cryptocurrency exchange’s successful IPO in April, investors are searching for the next Coinbase.

    The “portal” to digital assets was the selling point of MoonPay to investors. For the time being, this entails bitcoin, ether, and other electronic coins like NFTs. However, Soto-Wright intends to broaden the platform’s scope to cover anything from tokenized equities to digital clothing. People are referring to them as PayPal for cryptocurrency, he added.

    According to Soto-Wright, the business has robust controls and checks in place to combat corruption. Regulators are being more cautious as a result of illegal activities in the industry.

    Since the platform’s introduction in 2019, according to MoonPay, it has been profitable. After transaction volumes soared 35-fold from 2020, the company is on target to generate $150 million in revenue this year. More than 7 million users already utilise its service.

    MoonPay – Vision, and Mission Statement

    MoonPay’s mission has been clear from the start: provide the next billion people access to cryptocurrency.

    The goal of MoonPay is to provide the next billion people with access to cryptocurrencies, which we believe will ultimately have a greater impact on people’s lives than the internet.

    Because they firmly believe in the potential of cryptocurrencies and their ability to democratise finance, everything they have done in their first two years has been focused on achieving that aim.

    MoonPay – Business Model

    MoonPay, a Miami-based company that was founded in 2019, offers software that enables users to purchase and trade cryptocurrencies using standard payment methods including credit cards, bank transfers, or mobile wallets like Apple Pay and Google Pay.

    In a business model CEO Ivan Soto-Wright refers to as “crypto-as-a-service,” it also offers its technology to organisations like non-fungible token (NFT) exchange OpenSea and cryptocurrency website Bitcoin.com.

    Processing fees, payment fees, and a concierge service for affluent customers are how MoonPay generates revenue.

    • Processing and Payment fees – The processing and payment fees that MoonPay’s institutional and retail customers pay to make up the majority of its income. Every time a customer buys or sells a cryptocurrency, a processing fee is levied on the consumer side. It charges a 4.5 per cent fee for card purchases. Fees are 1 per cent for both purchases and sales when using bank transfers. Users will furthermore be responsible for paying the corresponding gas fees imposed by the blockchain network they use to conduct their transactions. Similar to that, it assesses firms with a 4.5 per cent card payment fee and a 1 per cent bank transfer cost. However, depending on several variables, such as everyday transactions, rates for larger partners may be negotiable. Although these costs can seem high, it should be recognised that MoonPay does not keep the entire charge. It is required to split the money for credit card transactions with the MasterCard or Visa card issuer. Additionally, it collaborates with several custodians and fraud detection services, both of which charge extra fees. Numerous comparable services, including Shakepay, have also emerged. All of them advertise themselves as simple ways for regular people to obtain cryptocurrency.
    • Concierge Service – MoonPay also makes money from its custodial services for wealthy people, albeit this portion of their revenue is probably lower. On behalf of its customers, it will use this service to buy and store cryptocurrencies and non-fungible tokens (NFTs). Celebrities including Post Malone, The Weeknd, Lil Baby, and Jimmy Fallon have received such service from the firm. Although nothing is known, it may be inferred that MoonPay charges a management fee in the form of a percentage for such services.

    MoonPay – Catering Celebs

    Since November 2021, celebrities have used MoonPay to buy products from some of the most well-liked and pricey NFT collections. Just a handful of the rising list of celebrities who have used cryptocurrency firm MoonPay to facilitate purchases of exorbitantly priced non-fungible tokens includes Jimmy Fallon, Post Malone, Diplo, DJ Khaled, and Justin Beiber. Rapper Snoop Dogg joined the crew as the newest member on December 22, 2021. On Twitter, he displayed four brand-new items from the Bored Ape Yacht Club line. He praised MoonPay and its CEO Ivan Soto-Wright for their assistance with the transaction in a different tweet. A significant majority of the NFT transactions MoonPay has arranged on behalf of celebrities are for Bored Apes.

    They are A-list celebrities in addition to being some of MoonPay’s more than 60 new investors. The Chainsmokers, Drake, Matthew McConaughey, Eva Longoria, Kate Hudson, Paris Hilton, Jason Derulo, Mindy Kaling, Questlove, and Shawn Mendes are just a few more famous people that have invested.

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    MoonPay – Funding, and Investors

    MoonPay has received a total funding of $642 million from investors in 3 rounds of funding.

    Date Round Amount Lead Investors
    Apr 13, 2022 Series A $87M –
    Nov 22, 2021 Series A $555M Coatue, Tiger Global Management
    Mar 1, 2021 Funding Round – –

    MoonPay – Investments

    Date Organization Name Round Amount
    May 20, 2022 UnicornDAO Seed Round $4.5M
    Mar 22, 2022 Yuga labs Seed Round $450M
    Sep 26, 2021 Yellow Card Series A $15M
    Jun 25, 2021 Moon Pre-Seed Round $2.8M

    MoonPay – Growth

    Having only existed for three years, MoonPay has:

    • processed transactions worth more than $2 billion.
    • seen a surge in transaction volume of more than 35 times.
    • consistently attained monthly sales growth of greater than 30%
    • accumulated a clientele of more than 7 million users.
    • more than five times its partner ecosystem.
    • provided support for more than 30 fiat currencies and 90 cryptocurrencies.

    MoonPay – Competitors

    The top competitors in the competitive set of MoonPay are

    • Coinbase
    • Wyre
    • Ramp Instant
    • Mercury.io.
    • Simplex
    • Transak
    • Banxa
    • Paywithmoon
    • Changelly
    • Ffnews
    • Bitmart

    MoonPay – Challenges Faced

    Difficulties include access to different currencies and custodial limitations, regulatory and compliance constraints, and fraud concerns among traditional payment providers. These are the same problems that MoonPay focuses on and helps its partners with.

    “We are excited about the opportunity in crypto, but one of the challenges to mainstream adoption is offering the same seamless experience that users have come to expect from modern internet products. MoonPay has impressed us with its product, infrastructure, and execution.”  – Kris Fredrickson, managing partner at Coatue.

    “We think that the crypto economy today is growing faster than the internet was at a similar stage of its development and that MoonPay is well-positioned to serve crypto-native innovators and those in traditional finance.” -Kris Fredrickson, managing partner at Coatue.

    People all across the world now have an easy and safe method to join in this new economy thanks to MoonPay. Beyond cryptocurrencies, MoonPay’s non-fungible token solution has been gaining ground in the NFT market, which has lately experienced spectacular development.

    MoonPay – Future Plans

    MoonPay intends to use the funds received in the future to expand and develop new products. According to Soto-Wright, the company already has plans to go public.

    Moonpay will begin an expansion phase with the financing, hiring additional engineers for its staff and preparing to offer more features to its network. A range of tools for consumers is the company’s main emphasis. Cryptocurrency exchanges and wallets must abide by several standards, including Know Your Customer and Anti-Money Laundering legislation, to offer fiat on-ramping services.

    By offering a third-party solution, Moonpay says it can let enterprises focus on their core competencies while it handles KYC, payment processing, cryptocurrency liquidity and delivery, fraud protection, regulatory licencing, ecosystem identity verification, and customised checkout processes.

    FAQs

    What is MoonPay?

    MoonPay is a digital platform for buying and selling cryptocurrency.

    When was MoonPay founded?

    MoonPay was founded in 2018 in Greater Miami Area, East Coast, Southern US.

    Who is the founder of MoonPay?

    Victor Faramond and Ivan Soto-Wright are the co-founders of MoonPay.

    What is the amount of funding raised by MoonPay?

    MoonPay has received a total funding of $642 million.

    Who are the competitors of MoonPay?

    The top competitors of MoonPay are:

    • Coinbase
    • Wyre
    • Ramp Instant
    • Mercury.io
    • Simplex
    • Transak
    • Banxa
    • Paywithmoon
    • Changelly
    • Ffnews
    • Bitmart

  • Navi Success Story – Driving Smooth Transition of Financial Services Even Amidst Pandemic!

    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.

    Startup Name Navi Technologies
    Also Known As BAC Acquisitions (BACQ), NAVI Finserv
    Legal Name Navi Technologies Pvt. Ltd.
    Headquarters Bengaluru, Karnataka, India
    Industry Banking, Financial Services, FinTech, Insurance
    Founders Ankit Agarwal, Sachin Bansal
    Founded 2018
    Areas Served India
    Current CEO Sachin Bansal
    Website www.navi.com

    Navi – About and How it Works?
    Navi – Industry
    Navi – Founders and Team
    Navi – Startup Story
    Navi – Name, Logo, and Tagline
    Navi – Vision and Mission
    Navi – Business Model and Revenue Model
    Navi – Funding, and Investors
    Navi – Investments
    Navi – Acquisitions
    Navi – Growth and Revenue
    Navi – Products and Services
    Navi – Layoffs
    Navi – Competitors
    Navi – Future Plans

    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.

    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 was founded by Ankit Agarwal and Sachin Bansal in 2018.

    Sachin Bansal - Co-founder of Navi
    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.

    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 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.”

    Company Logo of Navi
    Company Logo of Navi 

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    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.”

    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 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 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 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 –

    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 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 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 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’ main rivals include:

    • Autorite Des Marches Financiers
    • FIS
    • Abhipra Capital
    • Tacotax  

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    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.

  • List of Companies Acquired by Stripe

    We are living in a world where technology has made our life easier. We can’t even think about living our life without using a single form of tech; we are highly dependent on them. Tech companies are now ruling the world because of that, even the demand for tech startups is rising every day.

    One of the most in-demand industries now is Fintech. Some of the popular Fintechs are literally ruling the world with their services. The rise of the internet and smartphones and the trend of making India digitized has contributed to the rise of Fintech in the world.

    One of the popular Fintech companies is Stripe. It is an Irish-American Silicon-valley Fintech startup that provides SaaS and financial services. The company’s headquarters is situated in two places that are in San Francisco, the United States and Dublin, Ireland. The company was founded in the year 2009 by Patrick Collison and John Collison.

    The company mainly offers payment processing software and Application Programming Interfaces for E-commerce websites. Stripe has acquired many companies to expand their services in various fields. In this article, we will talk about the companies that are acquired by Stripe. So, without any further ado, let’s get started.

    “Much of what is called investment is actually nothing more than mergers and acquisitions, and of course mergers and acquisitions are generally accompanied by downsizing.”
    -Susan George

    RunKit
    Indie Hackers
    Index
    Touchtech
    Kickoff
    Totems
    Paystack
    TaxJar
    Bouncer
    Recko
    Payable
    OpenChannel

    RunKit

    RunKit Logo
    RunKit Logo

    RunKit was founded in the year 2014 by Francisco Tolmasky and Ross Boucher, it was formerly known as Tonic. It is a tool for prototyping JavaScript. RunKit enables you to have a proper JavaScript environment in just a single click where one can use their npm model and see the results of it.

    The best part is that there is no need for installation. It is a node playground in the browser. The headquarters of the company is situated in San Francisco, United States of America. Stripe acquired Runkit in the year 2016 at an undisclosed amount.

    Indie Hackers

    Indie Hackers Logo
    Indie Hackers Logo

    Indie Hackers is a community and website where well-known entrepreneurs and founders of profitable businesses share their stories on the platform. The new entrepreneurs and startup owners read those and learn from those stories and experiences. Here the entrepreneurs come together and share all kinds of experiences and receive feedback and support when they need it.

    The company focuses on making companies earn profit while being independent. The community was founded in the year 2016 by Channing Allen and Courtland Allen. The company was acquired by Stripe in the year 2017 for an undisclosed amount.

    Index

    Founded in the year 2012 by Jonathan Wall and Marc Freed-Finnegan, Index is a retail software company that provides security, personalised experiences and others. It mainly helps retailers to evolve their in-store payments and create their customer contact database.

    Index is known for PIN pads that help read a chip card in just a second. The headquarters of the company is situated in San Francisco, United States of America. Stripe acquired Index in the year 2018 for an undisclosed amount.

    Touchtech

    Touchtech Logo
    Touchtech Logo

    Touchtech was founded in the year 2014 by Niall Hogan and Shekinah Adewum and its headquarters was situated in Dublin, Ireland. Touchtech is a startup that basically works together with banks to build and manage verification processes for customers who required two different forms of authentication so that they can process transactions through their cards. Touchtech was acquired by Stripe in 2019.

    Kickoff

    Stripe made its first official acquisition by acquiring Kickoff, which is a chat and task management application. Through this app, companies can share the tasks with their employee, manage the team and can also chat with them, the app works for Mac and iOS platforms. Kickoff was founded in the year 2011 by John Gardner and Benjamin De Cock. The headquarters of the company is situated in Aubange, Luxembourg, Belgium.

    The app was specially designed for enabling proper team conversation; it also has some special features like history access and offline support. Stripe acquired Kickoff in the year 2013 exactly after two years, the company was founded.

    Totems

    Totems are an Internet software and service company founded in the year 2011 by Gabriel Hubert and Stanislas Polu. The headquarters is situated in Ketchikan, Alaska, United States. The company mainly offers marketing tools for brands on social media platforms, including Instagram. This helps brands to realize where they stand and what their presence means on Instagram.

    Apart from that, it helps brands realize and understand the need of their audience; brands can also track their marketing campaign. TOTEMS was acquired by Stripe in 2015 at an undisclosed amount

    Paystack

    Paystack was founded in the year 2015 by Ezra Olubi and Shola Akinlade and provides financial services to its customers. It is a website that let businesses accepts various forms of payments through credit card; debit card, and mobile transfer from anyone and any part of the world. The headquarters is situated in Ikeja, Nigeria.

    Stripe acquired the startup in the year 2020 when the startup had over 60000 customers at an amount of over $200 million. This acquisition is said to be the biggest startup acquisition in Nigeria.

    TaxJar

    TaxJar is a tech solution founded in the year 2013 by Mark Faggiano and Matt Anderson. The company basically helps E-commerce manage its sales tax. The company is to help the E-commerce sellers and make their work easier by handling the challenges of Sales Tax. The company’s headquarters is situated in Boston, United States. In 2021, TaxJar was acquired by Stripe in the year 2021; the acquisition was to remove any kind of barriers to multinational companies for their growth.

    Bouncer

    Bouncer Logo
    Bouncer Logo

    Bouncer is a company focused on making card authentication technology that will reduce the chances of fraud during any kind of transaction of online businesses. It is a risk detection tech platform. Bouncer was founded in the year 2019 by Sam King, Steven Liu and Will Megson and the company’s headquarters is situated in Oakland, United States. Stripe acquired Bouncer in the year 2021.

    Recko

    Recko Logo
    Recko Logo

    Recko is an Indian fintech company founded in 2017 by Prashant Borde and Saurya Prakash Sinha. Recko is a financial operation platform for online companies and their digital transaction. It basically helps businesses to track online businesses’ incoming and outgoing payments. Platforms like Meesho, Deliveroo and PharmEasy are The Company’s headquarters is situated in Bangalore, India. Recko was acquired by Stripe in the year 2021

    Payable

    Payable Logo
    Payable Logo

    Payable was founded in the year 2013 by Kyle Kilat, Peter Terrill, and Tad Milbourn. It is a platform that helps contractors to get their payments hassle-free. Some of its features like providing invoices, tracking the contractor’s work, and calculating their earnings as well as taxes make it an interesting platform for workers as well as the companies. Stripe acquired Payable in the year 2017 to take help from tax-related obligations.

    OpenChannel

    OpenChannel Logo
    OpenChannel Logo

    OpenChannel is a company that provides help to businesses by allowing them to create, launch and manage apps for their work. These are created for the products of the business. Open Channel was founded in the year 2013 by Brian Amaro and Michael Kovacs. The headquarters of the company is situated in Auckland, New Zealand. OpenChannel was acquired by stripe in 2021.

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    Conclusion

    Stripe by acquiring so many tech companies is on the verge of making its service expand to other fields as well. The main point of Stripe is to help businesses by taking all these companies’ services. The company is now raising more funds to acquire companies and add them to its list of acquisitions. Stripe’s current valuation is over $95 billion.

    FAQs

    Who is the founder of Stripe?

    Stripe was founded in the year 2009 by the Collison brothers, Patrick Collison and John Collison.

    What are the companies that are acquired by Stripe?

    The companies that are acquired by Stripe are:

    • RunKit
    • Indie Hackers
    • Index
    • Totems
    • Touchtech
    • Kickoff
    • Paystack
    • TaxJar
    • Bouncer
    • Recko
    • Payable
    • OpenChannel

    What is the revenue of Stripe?

    The revenue of Stripe is 740 Crore USD as of 2020.

  • Recordent: Credit Management Platform to Secure Your Business Growth

    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 – Company Highlights

    Startup Name Recordent
    Headquarters Hyderabad
    Industry Re-inventing Credit Management
    Founded 2020
    Founders Harish Mamtani and Winny Patro

    Recordent – About
    Recordent – Industry
    Recordent – Founders and Team
    Recordent – Idea & Startup Story
    Recordent – Name, Tagline, and Logo
    Recordent – Business Model & Revenue Model
    Recordent – Product & Services
    Recordent – Marketing
    Recordent – Challenges Faced
    Recordent – Funding
    Recordent – Revenue
    Recordent – Recognition and Achievements
    Recordent – Partnerships
    Recordent – Future Plans
    Recordent – FAQs

    Recordent – About

    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.

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    Recordent – Founders and Team

    Harish Mamtani is the founder of Recordent, and Winny Patro is the co-founder.

    Harish Mamtani - Co-Founder of Recordent
    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 – Co-Founder of Recordent

    Winny Patro manages Day 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
    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 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’. It simply 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.

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    Recordent – Revenue

    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.

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    Recordent – Future Plans

    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.