StartupTalky

Tag: fintech

  • NachoNacho: Revolutionizing the Subscription Economy with Fintech and AI

    B2B SaaS is cloud-based software that businesses can access from anywhere as long as the users are connected to the Internet. B2B SaaS offers many advantages: Instead of buying software licenses, businesses can take advantage of flexible pricing options.

    NachoNacho is a groundbreaking B2B SaaS + services marketplace driven by Fintech and AI. The platform revolutionizes how businesses manage, discover, and obtain discounts on SaaS and services, offering up to 30% off lifetime deals.

    In this article, let’s learn more about NachoNacho, its founders, products, strategies, challenges, and more.

    NachoNacho – Company Highlights

    STARTUP NAME NachoNacho
    Headquarters San Francisco,California,United States
    Sector SaaS
    Founder Sanjay Goel and Alan Szternberg
    Founded 2019
    Website nachonacho.com

    NachoNacho – About
    NachoNacho – Industry
    NachoNacho – Founders and Team
    NachoNacho – Startup Story
    NachoNacho – Vision and Mission
    NachoNacho – Name and Logo
    NachoNacho – Product/Services
    NachoNacho – Business and Revenue Model
    NachoNacho – Launching Company Strategies
    NachoNacho – Customer Growth and Retention Strategies
    NachoNacho – Challenges Faced
    NachoNacho – Growth
    NachoNacho – Marketing Strategy
    NachoNacho – Recognition and Achievements
    NachoNacho – Funding
    NachoNacho – Key Tools and Software
    NachoNacho – Competitors
    NachoNacho – Future Plans

    NachoNacho – About

    NachoNacho is a B2B SaaS + services marketplace powered by Fintech and AI. Manage, discover, and get discounts on SaaS + Services (up to 30% off lifetime).

    NachoNacho – Industry

    NachoNacho observes that SaaS purchasing is undergoing a shift towards decentralization, indicating a departure from relying on MSPs and SIs. This trend empowers internal department heads to autonomously procure subscriptions. Consequently, it results in increased SaaS sprawl throughout organizations. In light of this, NachoNacho recognizes the significance of its Subscription Management and Spend Management features in addressing these evolving needs.

    Through the NachoNacho platform, users can leverage AI-powered tools to identify suitable software solutions by comparing their buyer profiles with those of similar profiles from other companies. This capability enables NachoNacho users to discover relevant software effectively. Additionally, NachoNacho facilitates purchasing at discounted rates and centralizes the management of subscriptions, streamlining the entire process for business users.

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    NachoNacho – Founders and Team

    Sanjay Goel (Left) and Alan Szternberg (Right) - Co-Founders of NachoNacho
    Sanjay Goel (Left) and Alan Szternberg (Right) – Co-Founders of NachoNacho

    The two Founders met after having experience in the software industry for many years. Sanjay Goel, the CEO, had previously worked as a Managing Director for Hedge Funds, Deutsche Bank London, HSBC London, and Citibank. More recently Sanjay launched a software company named Oximity, which was sold to Scribd. Alan Szternberg, the CTO, was previously the owner of several development agencies including mirabelle.io and GooPlus after having gained a lot of experience at amazon.com for many years. Alan primarily manages the technical side of the business, while Sanjay helps with overall company operations and has his hand in almost every aspect of the company.

    The company currently has 16 employees and a fully remote work culture, although both the San Francisco and New York City teams will meet at local co-working spaces on a bi-weekly basis. Their team intends to set trends rather than follow them. This requires first-principle thinking – a key element of their ethos.

    Their diverse team can be found in over 7 countries around the world, giving them a multicultural perspective to help solve the challenges of the B2B SaaS industry. They believe a good team foundation is built on values, not where you’re from. They believe in the empowerment of talent at all levels – giving ownership and responsibilities beyond a team member’s current skill level or
    experience. They believe in lifelong learning, and learning by doing.

    NachoNacho – Startup Story

    Both founders of NachoNacho have extensive backgrounds in both large corporations and startups. They have observed the pervasive influence of the subscription economy across various facts of professional and personal life, noting its generally positive impact on both buyers and sellers of subscription products. However, drawing from their collective experiences, they identified several issues within the subscription economy.

    As buyers of subscriptions, they encountered challenges such as:

    1. Experiencing significant financial waste due to subscription sprawl within their companies.
    2. Struggling to discern which subscriptions were held by different departments within the company.
    3. Facing uncertainty in selecting the most suitable subscription products to fulfill specific needs.

    On the seller side, they observed intense competition across all categories of subscriptions, leading to substantial increases in user acquisition costs. In response to these challenges, the founders recognized the need to streamline and harmonize the subscription economy by establishing a centralized platform for both buyers and sellers.

    Drawing inspiration from successful marketplaces like Amazon, eBay, Etsy, and Upwork, the founders envisioned creating a similar marketplace tailored specifically for subscriptions. Although initially focused on subscription management, the founders pivoted their approach based on user feedback, realizing the market gap for a comprehensive solution encompassing discovery, purchasing, and management experiences for SaaS products.

    In 2019, NachoNacho commenced its journey with a vision to primarily address subscription management. However, with valuable user feedback, they swiftly adapted their strategy to cater to the broader needs of the market. This evolution culminated in a successful seed round of fundraising, securing $3 million in early 2022. This capital injection enabled NachoNacho to expand its team and scale its operations to further innovate and grow within the subscription economy.

    NachoNacho – Vision and Mission

    NachoNacho building the world’s first and largest true marketplace for subscriptions to harmonize the subscription economy and foster its further growth. It uses the latest fintech tools to create powerful user experiences for all stakeholders in the marketplace.

    NachoNacho means “Dance, Dance” in Hindi. A lot of people ask us about it, since the term isn’t well-known in the US, it mostly catches and draws attention that way. For people in the know, in India especially, they might recall a famous Bollywood movie. For NachoNacho, it connects with its vision to be constantly moving while creating a fun, positive community environment for both the SaaS vendor and SaaS buyer experience.

    NachoNacho Logo
    NachoNacho Logo

    NachoNacho – Product/Services

    NachoNacho is a single destination for businesses to manage and buy SaaS products. Users connect their payment source to their NachoNacho account and create one virtual VISA card per subscription. They migrate all their existing subscriptions to NachoNacho by simply changing the virtual card being used in each subscription account. They also buy new subscriptions by creating a new virtual card per subscription.

    As a central hub for businesses to manage and buy new subscriptions, NachoNacho acts as an efficient matchmaker between buyers and sellers. NachoNacho can predict the needs of buyers based on their purchase behaviour and recommend products most suitable to them.

    NachoNacho utilizes a variety of AI and Fintech tools to better enable users to identify new software they should be using, analyze wasted software spend, then manage all of their subscriptions and spend company-wide in one platform. In the early days, the platform was primarily focused on consumer subscription sprawl (e.g. Netflix and other consumer subscriptions), but more demand was seen in the B2B SaaS subscription space, which led to the pivot in 2019-2020.

    NachoNacho – Business and Revenue Model

    Their business model mostly depends on the referral CPA they get for driving business to its vendors. This way they’re aligned with the best interests of their partners to help sell their products, again harkening back to the win-win mentality that they have in their Marketing and Partnerships teams.

    NachoNacho – Launching Company Strategies

    A lot of the first users came through personal relationships. The core team, and especially the Founders, have a lot of preexisting relationships and a good reputation amongst businesses. This alone was able to draw in the early customer base, after that it became all about word-of-mouth, especially among SaaS vendors hungry for new opportunities to acquire new customers at a lower CAC.

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    NachoNacho – Customer Growth and Retention Strategies

    As a Marketplace for SaaS and Services, it partners with every vendor that comes onto its platform. These collaborations are designed to be win-win-win to build their brand awareness, the awareness of other vendors in its community, and for NachoNacho as the best place to buy SaaS and Services online. NachoNacho currently does not spend any money on Marketing, everything is a sweat equity investment in team member hours, content collaborations with partners, and SEO. NachoNacho sees its Marketplace as a community, which grows by doing mutual collaborations that help promote their partner’s businesses and create awareness for its vision to harmonize the subscription and B2B services economy.

    NachoNacho SaaS Marketplace
    NachoNacho SaaS Marketplace

    NachoNacho – Challenges Faced

    One of the major challenges they faced was the adoption of their powerful Fintech tool, which they call NachoCards. These empower users to access premium discounts on SaaS products, but more importantly, track and control all of their subscriptions spend company-wide. One of the challenges was getting users to understand how they’re used as a Fintech tool, as opposed to just any other credit card, to do this they created a freemium approach to the Marketplace which enables users to quickly access software perks and discounts, learn about the importance of SaaS management and solving the Subscription Sprawl problem, then upgrade to access that feature on their own timeline.

    What they’ve come to find is that once their business users understand how NachoCards work (as a Fintech tool, as opposed to a traditional credit card), they love using them for each and every subscription – one card per employee per vendor, just the way the platform was designed in order to maximize their ability to track and control subscription spend. As a startup they’re constantly faced with new challenges and opportunities to enhance the user experience for the platform, but as they gain more partnerships, the value of the Marketplace continues to grow for its users as they’ve essentially become a one-stop-shop to find all of the popular SaaS products at a great price and with the ability to access powerful Fintech and AI tools that enable finding their next SaaS tool easier than ever and, more importantly, solving the subscription sprawl problem with their easy-to-use SaaS management features.

    NachoNacho – Growth

    They operate globally mostly remotely, but have shared office space in New York City and San Francisco. They cannot publicly disclose profitability or revenue due to internal company policy. They have over 25,000 businesses signed up and ~ 1000 vendors signed up for the platform on both the SaaS and Services side. They’re rated consistently 4.5 stars and above on review aggregator websites such as G2, Trust Radius, Capterra, and more.

    NachoNacho – Marketing Strategy

    They do a lot of co-marketing initiatives which include webinars that generate social media sound clips from SaaS leaders. They’ll also do content collaborations which include blog posts, social media announcements, and videos with its partners that involve co-announcing the new partnership. They believe that a “rising tide raises all boats” and that the growth for their platform as well as the revenue opportunity and brand awareness for its partners is inextricably intertwined. They seek to grow mutually through win-win-win collaborations.

    NachoNacho Services Marketplace
    NachoNacho Services Marketplace

    NachoNacho – Recognition and Achievements

    As of the current date, NachoNacho has not received any awards. Nonetheless, the company receives consistent acknowledgement from its vendor partners, which include some of the leading SaaS brands in the industry such as Gusto, Zoom, Oracle, and many others. NachoNacho has curated an impressive roster of over 700 of the most popular software brands, and this list continues to expand daily as the company adds new partners to its platform. This robust network of reputable vendors underscores the company’s position as a trusted and valued partner within the SaaS ecosystem.

    NachoNacho – Funding

    Date Stage Amount Investors Name
    February 01 2022 Seed $3,000,000 Altair Capital, PMC, s16vc, Karman Ventures, Tunitas Ventures, Alchemist Accelerator

    NachoNacho – Key Tools and Software

    Here are some top tools that NachoNacho use:

    • Github – development project management 
    • Hubspot – CRM 
    • Superset – Data and analytics 
    • Google Analytics – Data and analytics 
    • Instantly.ai – Email Marketing 
    • Postmark – Transactional emails

    NachoNacho – Competitors

    The top NachoNacho competitors are:

    • Appsumo: More of a Marketplace competitor, but focused primarily on early-stage startups. Vendor: An enterprise-focused SaaS procurement and management platform. 
    • Zluri: Spend and subscription management platform (no Marketplace) 
    • Torri: SaaS Management platform built with a focus on IT managers

    NachoNacho – Future Plans

    They will be constantly evolving their Marketplace offering, especially since recently they added a Services Marketplace. They expect their Marketplace offerings to grow dramatically in 2024. They’re also improving its subscription discovery service as they allow SaaS buyers to provide more profile data and paired with SaaS usage and purchasing behavior from similar profiles, they are more accurately able to suggest the right software tools for SaaS buyers.

    FAQs

    Who are the founders of NachoNacho?

    Sanjay Goel and Alan Szternberg are the founders of NachoNacho.

    What is NachoNacho?

    NachoNacho is a B2B SaaS + services marketplace powered by Fintech and AI and it manages all your SaaS and business expenses in one place using virtual credit cards.

    What is a NachoCard?

    NachoCards are virtual Visa cards that are created on a per-subscription basis within your NachoNacho account.

  • Upwards’ Abhishek Soni Discusses Fintech Triumphs, Challenges, and Future Strategies

    StartupTalky is back with its Year-End Stories, presenting Recap’23. This is a series of interviews in which we conduct in-depth discussions with founders and industry leaders to understand their growth in 2023 and their predictions for the future.

    Today, our focus is on fintech and financial services. The fintech industry has become a powerhouse, providing innovative solutions that transform how we manage money, invest, and access financial services.

    Projections indicate that the Indian fintech market is expected to reach an impressive $1.3 trillion by 2025. Looking further ahead, the estimated growth in Assets Under Management and Revenue is significant, with estimates hitting $1 trillion and $200 billion by 2030, respectively. These numbers highlight the huge potential and significant impact the fintech industry can have on the future.

    In our recent interview for Recap’23, we connected with Abhishek Soni, the Co-Founder and CEO of Upwards. We discussed how Upwards is growing, the challenges it faces, what they’ve learned, and what’s coming up in the future. We also explored how Upwards is making a difference in the fintech world. 

    StartupTalky: Abhishek, what does Upwards do? What was the motivation/vision with which you started?

    Abhishek Soni: We offer the best-in-class user experience, access to credit to underprivileged sections of society, and a fully real-time and paperless process. Solving the large & underserved credit opportunity in India by leveraging tech and data is the key motivator for us.

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    StartupTalky: What are some noteworthy achievements in Upwards’ journey?

    Abhishek Soni: Our business has received significant validation from the end user, investors, and various ecosystem stakeholders with:

    • 10 million customer sign-ups.
    • $5 million of equity infusion by top global VCs & ~$40M of institutional debt.
    • Deep partnerships with all key institutional lenders like HDB, ABFL, Vivriti, Fullerton, etc.
    • Acquisition by Lendingkart in Jan 2023 in a deal valued at $15 million and numerous industry accolades in 2023.

    StartupTalky: How has the fintech industry changed in recent years, and how has Upwards adapted to these changes?

    Abhishek Soni: While technology has penetrated all aspects of financial services and fintechs continue to grow at an unprecedented pace, a key underlying trend is proactive collaboration between conventional institutions (like banks, NBFCs) and fintechs. In the context of lending, co-lending, joint product creation, and deep tech integrations between banks and fintechs have been key enablers. Upwards has benefitted massively from this trend, and 80% of all loans we disburse are via a co-lending partnership.

    StartupTalky: Could you share how Upwards adjusted its entrepreneurial strategy to navigate the evolving business environment against all odds.

    Abhishek Soni: In the face of an evolving business environment and formidable odds, especially with COVID and various BFSI sector crises, Upwards remained frugal, flexible, and adaptable in our entrepreneurial strategy. When unforeseen challenges (like COVID) arose, we embraced change and leveraged adversity as a catalyst for innovation.

    StartupTalky: What key metrics do you track to check Upwards’ growth and performance?

    Abhishek Soni: We rely on a robust automated dashboard and data lakes to stay on top of all KPIs. Some of the key ones are disbursal and AUM growth, collection resolution rates and delinquencies, customer satisfaction scores, app rating, and tech downtimes among others.

    StartupTalky: What were the most significant challenges Upwards faced in the past year and how did you overcome them?

    Abhishek Soni: Post our acquisition, there was a massive push on growth, and given our vision to stay operationally lean and tech-first, we needed to quickly get to the product market fit. To achieve that, we launched 7 pilots in the last 12 months, and 2 of them worked and received phenomenal customer validation.

    StartupTalky: What are the different strategies Upwards uses for marketing? Tell us about any growth hack that you pulled off.

    Abhishek Soni: We bet big on iterating to product market fit and listening to the voice of the customers. As mentioned above, we develop a thesis around customer pain points and then ‘win a stay, lose shift.’ Our focus, almost never in our journey of 6 years, has been on paid marketing.

    StartupTalky: What opportunities do you see for future growth in the fintech industry in India and the world? What kind of difference in market behavior have you seen within states in India?

    Abhishek Soni: Credit penetration in India is still <5%, so just the domestic opportunity is massive, and with rising consumption, it is growing fast as well. Across states, we have not seen much difference in consumer behavior.

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    StartupTalky: What lessons did the Upwards team learn in the past year and how will these inform your future plans and strategies?

    Abhishek Soni: Customer-centric products and avoiding short-term gratification for long-term value creation are some of the key lessons. These enable us to lay a strong foundation for the future and ensure that as our numbers keep growing, financials stay green.

    StartupTalky: How does Upwards plan to expand the customers, product, and team base in the future?

    Abhishek Soni: We plan to hit Rs 1500 crore AUM in the next 24 months. Our focus (same as today) will be on fully digital loans to underserved segments across salaried and self-employed segments.

    StartupTalky: One tip that you would like to share with budding entrepreneurs.

    Abhishek Soni: Embrace failure as a stepping stone to success, stay relentlessly curious, and prioritize a problem-solving mindset. Build a strong network, value integrity, and maintain a clear, unwavering vision. Be adaptable, listen to your customers, and never stop learning. Your journey will be challenging, but the rewards are worth it.

    StartupTalky extends its gratitude to Mr. Abhishek Soni for dedicating his valuable time and generously sharing his insights with all of us.

    Explore more Recap’23 Interviews here.

  • How RBI’s Risk Weight Adjustment Affects Banks, NBFCs, and Fintechs

    In an effort to control the unchecked expansion of unsecured consumer lending, the Reserve Bank of India (RBI) recently issued a notification. The directive increases the risk weight for consumer credit exposure of banks and non-banking financial companies (NBFCs), potentially impacting fintech players. Industry experts suggest that these lending institutions will now need to allocate more capital to be set aside against the unsecured loans they disburse.

    The RBI’s measure involves a 25-percentage-point increase in the risk weightage for both existing and new unsecured consumer credit exposure of commercial banks and NBFCs, elevating it from 100% to 125%. While the industry players appreciate the move for its risk mitigation aspects, concerns have been raised about the potential decline in loan growth. In essence, this adjustment is expected to drive up the lending costs for unsecured consumer loans.

    The RBI has expressed concerns about the escalating trend in unsecured consumer loans, specifically personal and credit card loans. With the latest circular instructing banks and NBFCs to heighten risk weights on such loans and restrict exposure, the RBI aims to curb the rapid growth in this segment.

    According to RBI data, personal loans witnessed a 23% growth in August 2023, and credit card outstanding increased by 30%, compared to the figures from August 2022.

    The higher risk weights entail that banks and NBFCs must allocate more capital for each loan they extend. In simple terms, this measure safeguards against potential issues if borrowers fail to repay their loans, preventing banks from encountering financial trouble. Lenders are now required to adhere to set limits on exposure to various segments of consumer credit as approved by their boards. Additionally, top-up loans backed by depreciating assets, such as car loans, will now be categorized as unsecured loans.

    “RBI’s recent move to strengthen regulations on consumer lending, particularly in personal loans, is a positive step towards risk reduction. In response, our partners have already implemented more stringent underwriting criteria over the last 30 days to ensure loan quality. It’s anticipated that this RBI initiative will contribute to a decline in loan growth, aligning to curb excesses in the NBFC space,” commented Manish Shara, Co-founder & CEO of Zet.

    Following global standards, a 100% risk weightage implies that INR 92 out of every INR 100 loan originates from depositors’ money, while INR 8 comes from shareholders’ investment. With the recent 25-percentage-point increase, banks and NBFCs will now need to source INR 10 from shareholders’ investments. This adjustment is expected to impact companies like Paytm, CRED, Navi Finserv, OnEMi Technologies (which operates Kissht and RING), along with several consumer-focused fintechs such as Freo, Fibe, Kreditbee, Paytm, and CRED, considering their substantial share in the number of loans disbursed.

    Offering insight into the central bank’s move, Rishabh Goel, Co-founder and CEO of Credgenics, stated, The current rise in risk weight assessment is likely to result in a marginal increase in loan pricing by banks. This serves as a signal urging lenders to exercise caution, especially in the small-ticket loans segment.

    Priyanka Chopra, COO, and managing partner for seed investing at IIMA-CIIE, predicted that this move would lead to a moderation of unsecured credit for digital lending startups. However, she noted that established players with a robust capital base and calibrated underwriting are expected to experience minimal impact.

    The RBI’s decision was driven by the necessity to control the growth in unsecured loans. Last month, RBI governor Shaktikanta Das emphasized the high growth in certain components of consumer credit, advising banks and NBFCs to enhance internal surveillance mechanisms, address risk build-up, and institute suitable safeguards. The notification also introduced changes to the risk weight of credit card receivables of scheduled commercial banks and bank credit to NBFCs to address potential risk build-up. Furthermore, the RBI stated that all top-up loans against movable assets with inherent depreciation, such as vehicles, must be treated as unsecured loans for credit appraisal, prudential limits, and exposure purposes.

    Jaya Vaidhyanathan, CEO of BCT Digital, expressed her support for the RBI’s decision, affirming, “The move to increase risk weights for personal loans is a constructive step, aligning with the central bank’s concerns regarding aggressive lending in the unsecured consumer loans sector. While the overall financial impact of defaults in this category may not be considerable, the sheer volume of individuals drawn to effortless credit for non-essential purposes like electronic gadgets is substantial. This initiative will deter lenders who may have previously adopted lax practices in loan assessment, reminiscent of historical incidents in 2008 involving credit card and personal loan mismanagement.”

    The latest sectoral credit growth data from the Reserve Bank of India (RBI) reveals that Indian banks are aggressively expanding their personal loan portfolio, with credit to the segment growing by 30.8%, compared to 19.4% on a year-on-year basis. Fintech firms have sanctioned almost ₹30,000 crore for consumption loans—personal loans, consumer durable loans, vehicle loans between 2015 and 2022—compared to less than ₹5,000 crore disbursed for business loans during the same period, as reported by the RBI-backed Centre for Advanced Financial Research and Learning (CAFRAL).

    There Is Currently No Imminent Effect on Interest Rates
    Is the Era of Easily Accessible Credit Coming to an End?
    Impact on Credit Cards

    There Is Currently No Imminent Effect on Interest Rates

    There is no immediate anticipation of an impact on interest rates, according to Shibani Kurian, Senior Executive Vice-President & Head of Equity Research at Kotak Mutual Fund. While the augmented risk weights are likely to influence growth in specific segments, large banks and NBFCs are currently well-capitalized, surpassing regulatory requirements. Therefore, raising capital immediately may not be necessary due to the increased risk weights. Banks are expected to assess the impact and decide whether any cost increases need to be passed on to customers. Corporate trainer (Financial Markets) Joydeep Sen concurs, emphasizing that while there might not be an immediate effect on banks’ costs, they are likely to adopt a more cautious approach in the long run.

    Naresh Malhotra, a former SBI executive and current Director at JCRC LLP, an accounting firm, emphasizes that NBFCs are more likely to bear the brunt of the impact, facing increased funding costs. As NBFCs borrow from banks to lend to customers, the rise in risk weights will elevate their borrowing costs from banks or through bond issuance. The final impact will be contingent on the resource mix and the proportion of unsecured consumer loans in an NBFC’s overall portfolio. Regarding commercial banks, Malhotra notes that although their unsecured loan portfolio has grown at a rate exceeding the general credit growth rate, their exposure to this segment is more effectively hedged than that of NBFCs. However, he acknowledges that higher capital outlay will also affect commercial banks.

    The RBI’s decision to elevate risk weights on unsecured consumer credit, including personal loans, from 100 percent to 125 percent for both banks and NBFCs, has implications for the lending landscape. Additionally, the risk weights for credit card receivables have been revised from 125 percent to 150 percent for banks and from 100 percent to 125 percent for NBFCs.

    Is the Era of Easily Accessible Credit Coming to an End?

    The era of easily accessible credit might be coming to an end from the borrower’s standpoint. Ritesh Srivastava, Founder and CEO of FREED, a debt relief platform, notes a noticeable shift among lenders, who have become more cautious and stringent in approving new loan applications. The approval rates for new loans currently hover around 4 to 5 percent, a significant drop from the peak of the cycle when they ranged from 8 to 12 percent.

    Malhotra emphasizes that the RBI is concerned about the rapid expansion of unsecured credit, prompting the central bank to raise the cost of lending for both banks and NBFCs. The intention is clear—to decelerate the pace of this growth. Kurian echoes this sentiment, pointing out that the heightened capital requirements will gradually ease the competitive fervor in the consumer credit sector, where banks, NBFCs, and fintechs in collaboration with regulated entities have been striving to attract more customers.

    Sen provides an additional perspective, stating that in unsecured loans, banks can compensate for delinquencies due to the higher interest rates. However, the consequence of elevated rates is that those diligently repaying their credit card dues end up covering for those who do not—a concept known as “good money for bad money.” This underscores the need for more thorough due diligence, and the increased risk weights will contribute to achieving this.

    This shift could be advantageous for individuals with a steady income and strong credit scores. On the flip side, those with irregular incomes and lower credit scores may encounter greater difficulty in securing loans. Adhil Shetty, CEO of BankBazaar.com, explains that for ideal borrowers—those with stable income, a credit score above 750, and a history of timely payments—there should be no impact on existing or new credit lines. Lenders are likely to favor such borrowers, while individuals outside these criteria may find it more challenging to secure loans, a trend that has historically held true.

    Impact on Credit Cards

    Industry experts we consulted do not foresee any immediate consequences, such as a reduction in credit card limits or higher interest rates, affecting credit cards.

    Malhotra emphasizes that the larger source of risk lies in outstanding credit card balances that remain unpaid even after the due date, warranting more attention. Kurian provides additional insight into this matter. Despite the rapid growth in credit card spending, she notes that there has been no deterioration in delinquency. “Revolve rates” (indicating the amount of outstanding credit card balance that remains unpaid) are currently lower than pre-Covid levels. Consequently, banks face no immediate asset quality concerns, making an immediate reduction in credit card limits unlikely. However, in the future, financial institutions may shift their focus to customers with better credit profiles, potentially slowing down the previously rapid growth. Srivastava suggests that existing credit card customers who only make minimum payments may encounter tighter credit limits and possibly a downward revision in limits upon renewals.

    On a positive note, Naveen Kukreja, Co-Founder and CEO of Paisabazaar, believes that for lenders with sufficient capital and effective risk management, credit cards and unsecured loans will remain highly profitable segments and continue to be focal points.

    Fintech firms anticipate that the effects of the Reserve Bank of India’s directive will become evident within six to twelve months, compelling them to broaden and fortify their secured portfolio. Fintech companies that acquire funds from banks or non-banking financial companies (NBFCs) are swiftly working on expanding their secured portfolio to constitute a minimum of 40 percent of their overall portfolio.

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  • Khatabook- How it is Reducing the Burden of Accounting?

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.

    In our haphazard daily life, we tend to get busy with several things and forget about payments and maintaining a log of all the financial transactions. This, sometimes, becomes extremely hectic and might even affect businesses adversely in a whole host of ways. However, with the emergence of numerous business management software, businesses and individuals can manage their businesses effortlessly. Khatabook is one of such reliable software solutions that makes managing business and personal ledgers a breeze!

    Founded in 2018 in Bangalore, Khatabook is hailed as India’s fastest-growing SaaS company. Khatabook reminds you through WhatsApp or SMS when the money is due to be paid or collected. forgetting the due dates of payments to be made. Besides, handling multiple businesses will no more be a deal with Khatabook!  

    The micro, small and medium businesses of the country simply has a new name, Khatabook, which brings safe and secure business and financial solutions to increase efficiency and reduce costs.

    Here’s diving into Khatabook’s journey in this StartupTalky article, where we will find out more about Khatabook Founders and Team, Funding and Investors, Startup Story, Tagline and Logo, Growth, Business and Revenue Model, Challenges, Competitors, Future Plans and more.  

    Khatabook empowering MSMEs to go digital.
    Khatabook empowering MSMEs to go digital.

    Khatabook – Company Highlights

    Startup Name Khatabook
    Headquarters Bangalore, Karnataka, India
    Founders Ashish Sonone, Dhanesh Kumar, Vaibhav Kalpe, Jaideep
    Sector Fintech
    Founded January 2019
    CEO Ravish Naresh
    Area Served India
    Valuation $600 Mn+
    Website www.khatabook.com
    Parent Company Kyte Technologies

    Khatabook – Latest News
    Khatabook – About and How it Works?
    Khatabook – Founders and Team
    Khatabook – Startup Story
    Khatabook – Mission and Vision
    Khatabook – Tagline and Logo
    Khatabook – Business Model
    Khatabook – Revenue Model
    Khatabook – Growth
    Khatabook – Acquisitions
    Khatabook – Awards and Achievements
    Khatabook – Partnerships
    Khatabook – Challenges Faced
    Khatabook – Funding and Investors
    Khatabook – Competitors
    Khatabook – LayOff
    Khatabook – Future Plans
    Khatabook – FAQs

    The latest campaign of Khatabook #DhandeKaDoctor featuring MS Dhoni, urging small businesses to use Khatabook to maintain their account.

    Khatabook – Latest News

    9th November 2021 – Khatabook has decided to shut down MyStore, the eCommerce enablement of the company, which has been a core product of the company, effective from 15th November onwards.

    24th August 2021 – Khatabook concluded its Series C round of funding with a fundraise of $100 million led by Tribe Capital, Moore Strategic Ventures, Alkeon Capital, B Capital Group, Sequoia Capital, and more.

    3rd February 2021 – Khatabook released its 2020 statistics. In 2020, Khatabook activated merchants in >95% Indian districts, recording over $100Bn+ in transactions with over 150Mn+ customers.

    13th January 2021 – Out of the 7 Indian startups in Y Combinator‘s latest top companies’ list, Khatabook is one among them. India has emerged as an important market for Y Combinator.

    Khatabook – About and How it Works?

    Founded in January 2019, Khatabook is the fastest growing Saas company in India and one of the fastest-growing SaaS company in the world. It has become India’s leading business management app for MSMEs with 20M+ downloads in a remarkably short period of time. It operates the Android-based Khatabook app that enables companies to keep a digital log of their financial transactions and accept payments online.

    Khatabook enables micro, small and medium merchants to track business transactions safely and securely. The app is available in over 12 vernacular languages, catering to a diverse audience in the country.

    It helps businesses and individuals manage the business and personal ledgers on their phones and computer devices along with helping them recall the due dates with the help of effective SMS and WhatsApp reminders about the same. This Bangalore-based mobile app service shares WhatsApp and SMS reminders to users when the money is due to be paid or collected.

    The Khatabook app has a free ‘Payment Reminders’ feature. With this feature, an automatic SMS is sent to your customers every time a transaction is recorded. Khatabook lets its users keep all details of credits and debits for any number of customers across multiple businesses ready and handy on their phones. Furthermore, Khatabook also helps its customers sync their transactions automatically, download, share and maintain reports of all the transactions, reap all the benefits of the effective QR code-based payments with 0% fees on transactions and more. In short, this app lets merchants do stress-free business.

    Khatabook – Industry Details

    Khatabook’s founder Ravish Naresh revealed on Twitter that Khatabook activated merchants in >95% Indian districts with 150Mn+ Customers. Based on the Indian MSME Data, Khatabook conducted research and analysis on the credit behavior of people across the country and also the impact of Covid-19 on small businesses.


    Here are some of the major findings:

    • Business volumes on credit are 45% higher for South Indian states vs the national average.
    • Credit given out by Khatabook merchants dropped by 40% in the initial Covid months. It has continued to recover to 80% of pre-pandemic levels by December.
    • Average days to recover debts increased by 25% during COVID for Khatabook Merchants.
    • Sectors like travel, construction, apparel were more impacted during 2020.

    Khatabook – Founders and Team

    Vaibhav Kalpe originally built Khatabook, which was later acquired by Kyte Technologies in 2018. Kalpe later joined the owning team of Kyte before he left the organization. The founding team of Khatabook currently has Ravish Naresh leading the company as the Co-founder and CEO along with other co-founders – Ashish Sonone, Dhanesh Kumar, and Jaideep Poonia.

    Khatabook - Founders & Team
    Khatabook – Founders & Team

    Ashish Sonone

    The Co-founder of Khatabook, Ashish Sonone is a IIT Bombay Btech graduate in Computer Science. JetSynthesys Pvt. Ltd and Qiosk – News for Professionals were the companies where Sonone worked as a Software Engineer and Consultant respectively before co-founding Frodo and Kyte, in both of which he also served as a Backend Engineer. Khatabook is the third company that Sonone has co-founded.

    Dhanesh Kumar

    Another Computer Science and Engineering from IIT Bombay, Dhanesh Kumar started with Amazon as a Software Developer, who then realized his entrepreneurial and decided to co-found Knit Messaging, Kyte and now Khatabook, where he is still serving as a Co-founder.

    Jaideep Poonia

    Jaideep is an IIT Bombay alumnus from where he completed his Btech in Civil Engineering before completing S18 from Y-Combinator. Poonia has also been the co-founder of Knit Messaging, Kyte, and Khatabook as Dhanesh Kumar.  

    Ravish Naresh

    Co-founder and CEO of Khatabook, Ravish Naresh completed his Btech from IIT Bombay, much like the other co-founders of the company, after which he co-founded Housing.com, where he also served as a COO. It was after leaving Housing.com, Ravish co-founded Khatabook, where he is still working as a CEO.

    Khatabook currently works with around 300 employees.    

    Khatabook – Startup Story

    The story goes back to 2016, when Ravish Naresh along with his team of college friends, started a digital spend manager app, Kyte.ai. The app helped users understand their expense patterns using their SMS alerts. Kyte initially had good traction but did not reach the expected growth scale. Also, the team realized all their users were based out of metropolitan cities.

    On researching, they found that first-time online users did not deal with digital transactions, and they still rely on traditional khata or ledger books. As per Ravish, they wanted to build something that people want and then try to build a business around it.

    That is when the idea for Khatabook developed, and they started to work on a simple cash management app, which they named Khatabook. The parent company of Khatabook is Kyte Technologies.

    Khatabook – Mission and Vision

    The mission statement of Khatabook says, “Empowering Udhari Khata (Book-Keeping)”.

    “Started with a vision of transforming India’s small shops, today we are the biggest player in the small business segment digitizing a sector that forms the backbone of our economy. We are looking to work closely with the government and financial institutions to strengthen our market leadership and help MSMEs increase their income while making them more efficient and competitive,” said Ravish Naresh, CEO of Khatabook.

    The tagline of Khatabook is Business Hua Easy! The app lets every business go digital instead of following the same traditional method of book-keeping and making it easy to grow their business.

    Khatabook’s logo itself signifies what the company is all about. It maintains a digital record of all the transactions we make, something which our actual ‘Khatabook’ (the diary in which we maintain our financial record) does.

    Khatabook Logo
    Khatabook Logo

    Khatabook – Business Model

    Khatabook is a mobile app that helps small merchants to digitize their accounting and credit balance recording. It helps to reduce the burden of bookkeeping and accounting. It is just like having a khata in your pocket. The business model of Khatabook is making “Bharat” / India come online.

    It is 100% free to use and secure for all types of businesses with which shop owners can record credit (Jama) and debit (Udhaar) of customers. But Khatabook has no revenue source at present.

    Ravish Naresh, CEO of Khatabook, said they’re now developing the app to provide a complete financial solution for small businesses. The startup has plans to bring a host of new features onto the platform and UPI payment is next on the line.

    Khatabook has seen some growth in the past two and a half years, where it has emerged as an integral part of the MSME community in almost every district in India. A majority of the merchant users on the Khatabook platform have embraced the digital practices dumping their offline business practices.

    Furthermore, Khatabook has also introduced 3 other solutions apart from the Flagship Khatabook for the benefit of the MSMEs:

    • Biz Analyst – This is a leading SaaS business management solution from Khatabook designed to offer premium value-added on-demand services like sales and purchase reports, livestock updates, and other MIS reports. Biz Analyst can be integrated with Tally ERP9 and allows an overall view of the business operations.
    • Pagarkhata – This is a staff management platform for businesses by Khatabook which aims to help merchants to turn the staff attendance, payroll/wages, attendance updates, leaves, payments, and other processes digital.
    • Cashbook – Cashbook is another platform by Khatabook built as a cash handling and tracking solution. Furthermore, it also helps with cash sales and expense management.

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    Khatabook – Revenue Model

    In 2020, Khatabook has active merchants in 95% of Indian districts, recording over $100 Billion in transactions with over 150 million customers.

    Khatabook has recorded total revenue of Rs 17 crore during FY21, thereby registering a 25.3% decline from Rs 24.4 crore. The startup’s revenue from operations, currently recorded at Rs 16.9 crore, witnessed a dip of around 30.7% from Rs 24.4 crore that it posted in FY20. On the other hand, the other income of the startup rose from Rs 12.7 crore in FY20 to Rs 21 crore in FY21.

    Diving into the profit-loss segment, it has been discovered that Khatabook has managed to reduce its loss by 63%, which has been brought down from Rs 89.5 crore to Rs 33 crore. This is primarily due to the selling of its intellectual property, some of which it sold to its holding company, Kyte Technologies Inc. for around Rs 57 crore.

    In FY22, the company experienced significant growth in its operating revenue, surging from Rs 17 crore in 2021 to an impressive Rs 71 crore. However, this growth was accompanied by a corresponding increase in total expenses, which escalated from Rs 109 crore in FY21 to Rs 189 crore in FY22. Consequently, the company’s losses also saw a substantial rise, soaring from Rs 33 crore in FY21 to Rs 111 crore in FY22 during this period.

    Here’s a look at the financials of Khatabook:

    Khatabook Financials
    Khatabook Financials

    Operating revenue for the Khatabook increased by 14% in FY23 to Rs 81 crore. Conversely, there was a marginal rise in losses of 4% to Rs 125 crore.
    Due to increased employee benefit costs (wages, salaries, PPF, etc.), which amounted to over Rs 142 crore, the company’s total expenses stayed steady at Rs 223 crore, a slight increase from Rs 189 crore in the year FY22.

    Khatabook – Growth

    Khatabook has registered around 10 Million monthly active users and the numbers are growing.

    Growth had an excellent trajectory, which did take a hit during the lockdown in line with other external factors. With the relaxation of the lockdown, the company started reviving the business at a steady pace. The revival has been faster with users in tier-2 and tier-3 cities of India.

    As a very relevant offering for merchants in the pandemic, the company also launched the MyStore app to enable them to take their stores online in 15 seconds and continue doing business through their preferred communication channels.

    Within a month after the launch, more than 2.5 million merchants across India have installed MyStore. Khatabook also initiated work from home active, 24/7 call center support for merchants. Currently, the revenue model of Khatabook depends on its funding.

    Some key growth highlights would include:

    • 5 crore+ registered businesses
    • A spread over 4000+ cities of India
    • Powered by popular investors like Sequoia Capital, DST Global Partners, Y Combinator, Tencent, B Capital Group and more

    Khatabook – Acquisitions

    Khatabook has acquired Biz Analyst on March 25, 2021, which remains the company’s maiden acquisition.

    Khatabook – Awards and Achievements

    Some of the popular awards and achievements that Khatabook has seen so far are:

    • It was declared as the Winner of Nasscom League of 10 in the Emerge50 Awards 2020
    • The company’s app won the Best Innovative Mobile App award at IAMAI 2020
    • mCube announced Khatabook the winner of the Best Content in a Mobile Marketing Campaign in its awards ceremony in 2020

    Khatabook – Partnerships

    Khatabook currently partners with the former skipper of the India cricket team, M.S. Dhoni, who is an investor as well as the brand ambassador of the company. The strategic partnership was announced on March 17, 2020.

    Khatabook – Challenges Faced

    Khatabook also faced a shortage of money during its initial days just like other new startups. Ravish, the CEO of Khatabook realized that they need to look into serious funding options.

    In the series A phase, they were struggling a bit with the funding. The growth hit them fast, so the seed round took place in 5 bridges. It was the highest in the history of funding for Sequoia.

    “Well, the struggles were mainly money-related. We knew we were working on something important and kept going with it. Often it was difficult to imagine the future of our initiatives with no funding, but perseverance is what got us where we are today,” said Ravish Naresh.

    He also said that the adoption of their product was not only dependent on the app’s visibility and convenience but also on educating users, not just for the app but also for using digital technology in general. The biggest hurdle was to persuade offline shopkeepers to come online and train them for digital transactions.

    Switching away from the convention is understandably tricky and daunting for merchants who mainly have offline workflows. Persuading traditional enterprises to embrace the digital still remains a crucial challenge for them.

    “It is important to build something that people want and then try to build a business around it, and that is exactly what the team did.” said Ravish.

    Khatabook announced the shutdown of MyStore on November 10, 2021. The eCommerce enablement product was one of the core products of the company, which also contributed to the expansion of the company by raising funds along with helping the company with its bookkeeping requirements.

    “Thank you for being a part of the MyStore journey. We are planning on discontinuing the MyStore App. Your MyStore App won’t work from 15 November 2021,” goes a blog post from the company.

    The company has further asked its users to download their invoices by sharing order invoices before doing away with the app.

    Khatabook had previously been dragged into a legal fight with its rival, Dukaan over the plagiarism of the name when MyStore was named ‘Dukaan by Khatabook’, in August 2020. Khatabook later decided to change it to ‘MyStore by Khatabook after a legal battle of around four months. The tagline of the app, however, remains the same, ”Create Your Online Dukaan in 15 Seconds” to date on Play Store.

    Khatabook – Funding and Investors

    Khatabook has raised a total of $186.5M in funding over 4 rounds. Their latest funding was raised on 24th August 2021, from a Series C round. Khatabook is funded by 34 investors in total. Tribe Capital and Moore Strategic Ventures are the most recent investors. The valuation of Khatabook was estimated to be around $600 Million in August 2021.

    Date Round Amount Lead Investors
    Aug 24, 2021 Series C $100M Tribe Capital, Moore Strategic Ventures
    May 20, 2020 Series B $60M B Capital Group
    Oct 1, 2019 Series A $25M –
    Apr 19, 2019 Seed Round $1.5M Surge

    Khatabook – Competitors

    The top competitors of Khatabook are:

    Khatabook – LayOff

    In a strategic move aimed at optimizing costs and prolonging the company’s financial runway, the organization recently made the difficult decision to implement workforce reductions, resulting in the departure of over 40 employees from various departments. These actions were undertaken as part of a broader effort to navigate the challenges faced by growth-stage companies.

    While undoubtedly a tough choice, the company’s leadership recognized the importance of preserving its financial stability and ensuring a sustainable future. This move reflects a commitment to adaptability and resilience in an ever-evolving business landscape, with the hope that these measures will ultimately position the company for long-term success.

    “Khatabook has laid off 42 employees across sales, marketing and analytics, and technology verticals,” said one of the sources requesting anonymity. “People who lost their jobs in the exercise have been given standard severance packages including 3 months salary among others.”

    Khatabook – Future Plans

    Khatabook plans to expand and achieve two to three times business growth by simplifying the traditional way of doing business. Remaining committed to India’s MSME segment, Khatabook will be adding services to streamline and simplify business processes for the merchants.

    “Committing to a goal is essential for business directions and decisions. One thing that pandemic has taught us is that we need to think through the most unlikely scenario and make sure we are relevant in all possible scenarios or are agile enough to change our direction as per the need of the hour,” says Ravish.

    Khatabook has already managed to build a widely accepted tech ecosystem for the MSMEs across the country and will now concentrate on the disbursement of financial services through its tech platforms. These financial services will further enable smooth lending, payment, and deposits in the MSME space.

    Khatabook is eyeing the right partnership opportunities to seamlessly roll out the solutions that would benefit the economic aspirations of countless small businesses.

    Khatabook has announced a buyback scheme of ESOPs worth USD 10 Million in order to acknowledge the contributions of its employees, the ex-employees and the early investors who stayed by the company and helped it grow. The employees who are eligible for the ESOP scheme would be able to sell up to 30% of their vested options. Meanwhile, Khatabook has also expanded its ESOP pool to $50 Mn.

    Furthermore, Khatabook is also looking to strengthen its talent base by hiring employees for the engineering, product, design, analytics, and data science departments.

    Khatabook – FAQs

    What is Khatabook?

    Khatabook is the world’s fastest-growing SaaS company. It is India’s leading business management app for MSMEs that enables companies to keep a digital log of their financial transactions and accept payments online. It’s like having a khata in your pocket.

    Is Khatabook an Indian app?

    Yes, Khatabook is an Indian app founded in 2019 with an aim to reduce the burden of bookkeeping and accounting.

    Which company owns Khatabook?

    Kyte Technologies is the Parent Company of Khatabook.

    Who is the CEO of Khatabook?

    Ravish Naresh is the CEO and Co-founder of Khatabook.

    Who are the founders of Khatabook?

    Khatabook was founded by Ashish Sonone, Dhanesh Kumar, Vaibhav Kalpe (Ex-Khatabook), Jaideep Poonia and Ravish Naresh in 2019.

    How does Khatabook make money?

    The Khatabook revenue model is non-existent at the moment. Naresh says their focus is now on developing the app to provide a complete financial solution to small businesses.

    What is the use of Khatabook?

    Khatabook app enables MSMEs to keep a digital log of their financial transactions and accept payments online.

    What is the valuation of Khatabook?

    The valuation of Khatabook was estimated to be around $600 Million.

  • iPiD’s Validate Solution Reshaping Payment Security & Fraud Prevention

    In an exclusive interaction with StartupTalky, Mr. Alain Raes, Founding Partner and Chief Commercial Officer of iPiD discussed iPiD’s Validate Solution and how it is addressing fraud and failed payments in the global payments industry, as well as its role in supporting emerging payment methods. Additionally, iPiD’s collaboration with fintech companies and strategies for adapting to regulatory changes and future competition were discussed, along with their commitment to developing new products and services focused on security and fraud prevention in the evolving payments landscape.

    How is iPiD’s payment addressing data platform Validate Solution helping to address the challenges of fraud and failed payments in the global payments industry?

    M.r Raes: iPiD’s payment addressing data platform, Validate, helps address the challenges of fraud and failed payments in the global payments industry by offering an advanced API solution that seamlessly integrates with domestic account validation schemes. With Validate, banks or payment providers can ensure payments reach the intended recipients every time. It does this by confirming payee names and bank account details in real-time, offering an essential tool in the battle against fraud and failed payments.

    How is iPiD’s technology supporting the development of new payment methods, such as instant payments and cryptocurrencies?

    Mr. Raes: iPiD’s technology supports emerging payment methods, including instant payments and cryptocurrencies. While it is worth noting that cryptocurrency itself is not considered a traditional payment method, iPiD’s Validate API solution can facilitate the integration of cryptocurrencies and enhance their utility in the payment ecosystem.

    In the context of instant payments, iPiD’s technology ensures the seamless validation of essential data points concerning the recipient, a critical requirement for real-time transactions. This verification process promotes the reliability and security of instant payments, helping to build trust among users and enabling these payment methods to thrive in an increasingly fast-paced financial landscape.

    When it comes to cryptocurrencies, iPiD’s Validate API solution can be integrated into the existing payment systems of service providers in the crypto space. This integration allows for the verification of crucial data points about the recipient of the cryptocurrency payment, contributing to the overall security and legitimacy of cryptocurrency transactions.

    How is iPiD working with other fintech companies to revolutionize the way global payments are made?

    Mr. Raes: iPiD is collaborating with various fintech companies to spearhead a revolution in the way global payments are conducted. The key strategy lies in the integration of the Validate API solution into the existing payment systems of these fintech firms.

    This integration is pivotal because it empowers these companies to validate essential data points about the payment’s recipient. By leveraging iPiD’s technology, any payment provider can enhance the accuracy and security of their transactions. iPiD’s cooperation with fintech companies is driving an evolution in global payments by ensuring that the fundamental data elements related to payment recipients are consistently validated. This innovation contributes to the overall enhancement of payment processes and security, ultimately reshaping the landscape of global payments.

    What are iPiD’s views on the latest regulatory developments in the payments industry, such as PSD2 and Open Banking?

    Mr. Raes: PSD2 and open banking regulations have been in existence for a significant period. One of the central principles of open banking is the requirement for participant consent, which underscores the importance of authorization in data sharing. More recent payment regulations are specifically targeted at safeguarding paying agents against the repercussions of the rapid evolution of real-time payments. These developments primarily address concerns related to misdirected payments and, significantly, the rise of APP Fraud.

    It is worth noting that these new regulations are focused on mandating account validation, a crucial aspect of payment security, which aligns with iPiD’s capabilities and support. iPiD is well-equipped to facilitate compliance with these regulations, providing a valuable solution to enhance payment security and protect against emerging payment risks.

    How is iPiD preparing for the future of global payments, which is likely to be characterized by increased competition from emerging players and new technologies?

    Mr. Raes: We have a distinctive approach. Instead of positioning itself as a direct payment provider, iPiD serves as an enabler for various payment platforms.

    iPiD’s primary focus is on enhancing the customer experience by offering a robust account validation mechanism. This mechanism operates independently of the payment rails, which means it can be seamlessly integrated into various payment systems and platforms. By facilitating account validation before the payment initiation process, iPiD plays a crucial role in fortifying the foundation of payment processes and, consequently, in improving the overall customer experience.

    This approach enables iPiD to adapt and thrive in the rapidly changing landscape of global payments, ensuring its relevance and effectiveness in a world characterized by increasing competition and the emergence of new technologies and players in the payment industry.

    What new products and services is iPiD developing to meet the needs of its customers in the future?

    Mr. Raes: To meet the evolving needs of its customers in the future, iPiD is actively working on the development of new products and services. Among the current initiatives, iPiD has introduced a second API designed to foster interoperability between domestic proxy payment schemes. This feature promotes smoother and more efficient payment interactions across different platforms, enhancing convenience and accessibility for customers.

    Additionally, iPiD is committed to expanding its service offerings by introducing more microservices. These microservices will play a pivotal role in enhancing security measures by strengthening defenses against fraud. As the payments landscape continues to evolve and face new challenges, iPiD’s dedication to innovation ensures that it can deliver the products and services that meet the ever-changing needs of its customers, particularly in the context of fraud prevention and payment security.

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  • Uttar Pradesh to Play Big Role to Make India 3rd Largest Economy by 2030

    Uttar Pradesh with an aim of becoming a $1 trillion economy is currently the fastest growing state-economy in the country. Investors in Uttar Pradesh are bridging credit gaps in the thriving MSME sector. The state will play a big role in making India the third-largest economy in the world.

    Uttar Pradesh is leading the growth of the Indian MSME sector with the highest number of MSMEs in India. The largest and most populous state boasts more than 96 lakh MSMEs, making the state one of the fastest-growing state-level economies in the country.

    President Draupadi Murmu, in her address at the inauguration of the first UP International Trade Show, stated that over 200 manufacturers from the state were displaying their products to more than 400 buyers from a total of 66 countries. The event provided a platform for local manufacturers and small businesses to showcase their products in the national and international markets.

    The President also mentioned that Uttar Pradesh, despite being a landlocked state, has experienced remarkable growth in exports, with the value increasing from around Rs 88,000 crore in 2017-18 to Rs 1,75,000 crore in 2022-23. She attributed this growth to the proactive steps taken by the state government to promote economic growth and attract investments.

    “Uttar Pradesh is now among the fastest growing state-level economies in the country due to simplification of the investment process, ease of doing business and acceleration in infrastructure development,” said Murmu.

    In the same event, Union Minister Narayan Rane stated that India is expected to become the third largest economy by 2030 and UP is going to play a major role in it. He also emphasized the necessity of enhancing citizens’ per capita income to address migration, underscoring the state’s goal of reaching a $1 trillion economy. He also highlighted the per capita income disparities between the United States and India to underscore the importance of economic growth in improving people’s quality of life. Using the instance of industrialization in his home state of Maharashtra, Rane pointed out that comprehensive research and analysis are vital to determine the suitable industries and their optimal locations within various areas or districts.

    Key Sectors for Investment in Uttar Pradesh
    Advice to MSMEs Attracting Investment in Uttar Pradesh

    Key Sectors for Investment in Uttar Pradesh

    Mr. Amit Tyagi, CEO, PayWorld highlighted key sectors that offer the most investment in Uttar Pradesh:

    1. Financial Inclusion: Uttar Pradesh, a populous state with a significant number of underserved population segments, is poised for improved financial inclusion. Fintech companies have a crucial role to play in achieving this by providing innovative and affordable financial products and services tailored to these segments.
    2. Agriculture: As a major agricultural hub in India, Uttar Pradesh offers substantial opportunities for fintech companies to revolutionize the agricultural sector. Fintech solutions, including crop insurance, agricultural financing, and supply chain management, can greatly benefit farmers and other stakeholders.
    3. Small Businesses: Uttar Pradesh is home to a multitude of small businesses, presenting fintech companies with the opportunity to offer a range of services. These services encompass digital payments, accounting software, and access to business loans, supporting the growth and success of these enterprises.

    The Uttar Pradesh government is actively promoting digital payments and fintech solutions, leading to an increasing demand for these services. Fintech companies can address this demand by providing solutions for government-to-citizen payments, tax processing, and subsidy distribution.

    Nevertheless, Indian MSMEs have faced a significant challenge in the form of limited access to credit within the market. To address this issue, both government agencies and non-governmental funding institutions throughout the country have made concerted efforts to facilitate easier access to capital.

    Mr Ameet Venkeshwar, CBO, LoanTap Financial Technologies, said that bridging the credit gap for MSMEs requires a combination of innovative products, customer-centric solutions, and collaboration between various financial institutions and businesses. Other than providing MSMEs loans, he said, “We have our own product called AfterPay Merchant by LoanTap, a dedicated credit solution for MSMEs tailored to accelerate business growth.”

    “We partner with large retailers to assist MSMEs, particularly small retail stores, in gaining easy access to funds through a revolving credit line. This support allows them to benefit from extended payment terms, bolstered working capital, and ensures a stable supply. Mostly the small retailers and Kirana stores are often underserved and this allows us to serve them moving more towards our vision of financial inclusion,” Mr Venkeshwar added.

    Mr Tyagi of PayWorld emphasized, “Our extensive network of merchant points provides MSMEs access to digital financial services, empowering them with digital payments, bank accounts, and e-wallets. Collaborations with financial institutions enable us to offer tailored micro-loans, addressing capital needs for UP’s MSMEs.”

    He stated that they are committed to innovation and the development of digital platforms. He mentioned that tailored products and financial awareness campaigns played a significant role in enhancing their commitment to UP’s economic growth. In a landscape where MSMEs sought credit solutions, Mr. Tyagi believed that PayWorld’s extensive reach and unwavering dedication to digital financial services could be transformative, propelling MSMEs toward prosperity and contributing significantly to the state’s development.

    Advice to MSMEs Attracting Investment in Uttar Pradesh

    Uttar Pradesh boasts a vibrant and flourishing MSME sector, which serves as the cornerstone of the state’s economy. These small and medium-sized enterprises contribute significantly to its GDP and generate millions of jobs. For MSMEs in Uttar Pradesh looking to invest in their growth, several key opportunities exist.

    1. Government Initiatives: To support MSMEs in the state, the state government has initiated various programs, including the One District One Product (ODOP) scheme and the Nivesh Mitra portal. These schemes offer financial and technical assistance to MSMEs, streamlining the process of raising investments and saving both time and money.
    2. PM Vishwakarma Yojana Scheme: The Pradhan Mantri Vishwakarma Kaushal Samman Yojana, a central government initiative, provides skill training to traditional artisans and craftsmen. MSMEs in Uttar Pradesh can leverage this scheme to train their employees, enhancing productivity and making their businesses more appealing to potential investors.
    3. Targeting the Export Market: The export market presents numerous opportunities for the state’s MSMEs, with the government actively promoting exports from the state. By tapping into government support and the growing export sector, MSMEs in UP can expand their operations and attract increased investment.
    4. Leveraging Fintech: Uttar Pradesh’s MSMEs can harness fintech solutions to attract investment and facilitate business growth. They can utilize online crowdfunding platforms to raise capital from a wide investor base. Furthermore, fintech platforms can automate accounting and financial reporting processes, enhancing their appeal to potential investors. Collaborating with fintech companies to develop innovative financial products and services is another avenue through which MSMEs in UP can pique investor interest.

    Mr. Venkeshwar also acknowledged that attracting investment can pose a challenge, but it is an attainable goal when the right strategy and approach are in place. Furthermore, with the sector’s growth on the rise, the outlook appears promising, particularly with new initiatives such as financial inclusion aimed at assisting the underserved sector in India.

    Union Minister Narayan Rane also mentioned that there are approximately 9.5 million MSMEs in the state, and when considering the entire country, there are around 63 million functional MSMEs. He stated that through the MSME sector in Uttar Pradesh, small businessmen and farmers have been finding employment opportunities, and they have been significant contributors to India’s growing economy.

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  • Lentra’s Ankur Handa Dives Deep into Digital Lending Trends and Challenges

    As the digital lending sector continues to witness remarkable growth and transformation, StartupTalky interacted with Mr. Ankur Handa, Co-Founder and President of Lentra, to discuss the challenges that the digital lending industry currently faces and how Lentra is actively addressing them. Mr. Handa also shed light on the key trends that are shaping the industry.

    Lentra, a prominent player in the digital lending arena, has been at the forefront of innovation, pioneering new strategies to maintain a competitive edge. From enhancing accessibility to ensuring data protection compliance, the interaction explored critical aspects of the industry’s growth and development.

    StartupTalky: Hello, I am Sayantan, and we are joined by Mr. Ankur Handa, Co-Founder and President of Lentra. Welcome to StartupTalky, Mr. Handa. How are you today?

    Mr. Handa: Very well, thank you so much for having me here.

    StartupTalky: It is a pleasure to have you here today. I am sure our audience is eager to learn more about Lentra and the digital lending market. Let us dive right in. What key trends do you see in the digital lending industry, and how is Lentra innovating to stay ahead?

    Mr. Handa: The lending technology landscape in India is undergoing significant transformation, particularly in the aftermath of the COVID-19 pandemic. One notable shift is the substantial growth in retail credit consumption, now surpassing commercial lending for the first time in history.

    What is most striking is the pluralism we see in our credit markets today. Credit is no longer limited to the salaried class or industrialists. It is now accessible to a diverse range of individuals, including street vendors, entrepreneurs, farmers, students, and homemakers. This expanded accessibility is largely attributed to initiatives like Jan Dhan Yojana, Aadhaar, and the widespread penetration of mobile internet. As we move towards a digitally connected world, this inclusivity becomes a significant equalizer for our diverse society.

    Another notable trend is the evolution of artificial intelligence (AI). AI is not only revolutionizing the way we assess creditworthiness but also changing the speed and scope of these assessments. It is enabling us to reach a broader customer base and customize services. One impactful application is leveraging business intelligence to address challenges related to accurately targeting potential customers. We are witnessing a shift towards a greater focus on “Government-to-Customer” (G2C) interactions, with initiatives like India Stack playing a pivotal role, particularly in sectors like agriculture and rural development.

    The decentralization of credit is another compelling trend. Initiatives like the Open Credit Enablement Network are standardizing the flow of credit among borrowers, lenders, and credit distributors. This move represents a democratization of financial services. As a certified TSP with Samadhi and Credit AI, Lentra leverages extensive cash flow data and a vast network of retailers to facilitate rapid underwriting.

    Additionally, co-lending is gaining traction, emphasizing customer-centricity and relationship management. There’s potential for non-banking financial companies (NBFCs) to collaborate with public sector banks, capitalizing on lower costs of funds to develop innovative business models.

    Lastly, the growing trend of “APIfication” is reshaping our industry. APIs (Application Programming Interfaces) are being integrated into various aspects of our operations. At Lentra, we have integrated our Lending APIs and Origination journeys with brands, OEMs, dealership chains, and merchant networks.

    StartupTalky: Thank you for sharing those trends, Mr. Handa. Now, moving on to challenges in the industry, what are the major challenges that the digital lending industry is currently grappling with, and how is Lentra tackling them?

    Mr Handa: One of the key challenges we face is accelerating our reach in a fast-growing market like India. We are not satisfied with a 7% growth rate; we aim for more. To achieve this, we need to revolutionize our digital distribution channels. Unlike in the past when we relied on physical branches, today, customers have numerous digital channels to access loan products.

    However, the challenge is tailoring these digital options to diverse customer segments. In rural areas, where a fancy website may not be practical, we need to use voice and other native digitization methods. For millennials and college students, a simple message or WhatsApp can complete the loan journey. Meanwhile, commercial lending to enterprises requires a different approach.

    The main challenge and opportunity lie in building robust digital distribution networks. Outside of that, as technology advances, security becomes a growing concern. With India’s growing economy, we anticipate a significant increase in security and fraud attacks by 2030. We must establish the right safeguards to protect our economy.

    In contrast, India excels in automation, insights, AI, collaboration with the ecosystem, and product innovation. These areas are not challenges but strengths for us, thanks to initiatives like India Stack. My focus is on addressing security and reimagining digital distribution as the top two long-term challenges.

    StartupTalky: All right. Since we have touched on distribution and security, so, my next questions revolve around these aspects. How is Lentra striving to enhance accessibility and inclusivity in digital lending, considering the diverse demographics? What strategies is Lentra employing in this regard?

    Mr. Handa: Our primary focus has been close collaboration with government initiatives. While terms like B2B and B2C are well-known, we have been forward-looking with a focus on G2C (Government-to-Customer). We have been early adopters of initiatives like Aadhaar, the Greater India Stack, eSign, and eKYC on our lending platform.

    We have also played a role in creating unique products. For example, we worked with a large bank to enable agricultural products like cattle finance loans and Kisan credit cards in just 90 days, benefiting rural farmers in Gujarat.

    There is a lot of innovation happening in response to government initiatives. The Account Aggregator, ONDC, OCEN, GeM Sahay, and related products are contributing to financial inclusion.

    Financial inclusion has come a long way. Credit card spending and personal loans are at all-time highs. However, we must ensure the sustainability of this credit growth and responsible lending practices. As a technology provider, we aim to support banks in lending responsibly to avoid repeating past mistakes, such as the 2007 crisis. The current NPA levels are at an all-time low of 3.9%, reflecting cleaner books.

    Financial inclusion is already happening, with a focus on retail products in both public and private sector banks. As a digital lending enabler, we are committed to creating new product offerings while maintaining sustainable models and robust underwriting, even when using alternate data and algorithms. Our goal is to avoid artificial growth bubbles.

    StartupTalky: Thank you for your insights, Mr. Handa. Now, moving on to data protection and security, considering the recent Digital Personal Data Protection Act, 2023, are there additional steps that Lentra needs to take to ensure compliance with the regulation once it is implemented?

    Mr. Handa: The key highlights from the Personal Data Protection Act are significant. The most notable aspect is the potential financial penalties, which can go up to 250 crore rupees for each instance of non-compliance. Data processing agreements are mandatory before outsourcing activities to third parties, even for Lentra, requiring scrutiny before using a solution.

    The Act also emphasizes periodic data protection impact assessments, mandatory for significant data fiduciaries. The impact assessment focuses on data, application, and infrastructure security, which must be designed for future challenges, not just current ones. India’s growing ecosystem means security threats will also increase.

    Details regarding the Act’s implementation may need clarification, likely after the establishment of the Data Protection Board of India, as outlined in the law. Lentra is actively discussing interpretations with banks and their risk teams.

    We have taken proactive steps to structure and process consent-based personal data sets for future adaptability. Data storage, encryption, and retention strategies will need reassessment and reimagination. This is an iterative but mandatory process to ensure data security for all Indians.

    Security is fundamental for Lentra, with compliance to ISO 27001, ISO 27018, ISO 22301, SOC 1, SOC 2, SOC 3, and AES 256-bit encryption already in place. As we gain more clarity, we will further reinforce and adapt these processes to the evolving ecosystem.

    StartupTalky: Since you mentioned the need for further clarification on government policies, especially regarding the Data Protection Act, do you have any specific recommendations for government policies that could better support the growth of Indian startups in general?

    Mr. Handa: Absolutely, there is more to be done. India has made significant strides in digital finance and payments, with UPI being a headline story. The scale, speed, and unit economics have amazed the world, and India is at the forefront of the fourth industrial revolution.

    The government can play a crucial role in two ways. Firstly, it can further accelerate the positive momentum within India. Secondly, it can help Indian companies, like ours, take their products to the global stage. Initiatives like expanding UPI to other countries are promising.

    As a private player, we are eager to take the Indian success story worldwide, but we need a conducive environment. Events like the G20 have been instrumental in promoting the Indian narrative on a global scale.

    On the home front, credit needs to be integrated into daily life. The government can encourage this by creating frameworks that enable affordability aspects of lending in various sectors like tourism, health, and education. We have the technology stack ready; now we need the right policy framework.

    We envision providing credit throughout a person’s life, from college to retirement, with various credit products offered by banks and other industries. This holistic approach can benefit individuals in rural areas and tier four and five cities. It is time to explore how we can make this a reality in India.

    StartupTalky: Mr. Handa, I have one more question, a bit hypothetical. Currently, commodity-based businesses use their commodities as collateral for loans. So, in this digital age, is it conceivable that companies might use data as collateral for securing credit in the near or distant future? What are your thoughts on this possibility?

    Mr. Handa: Today, I am in Delhi, where we hosted an event with friends from the banking fraternity. One interesting discussion point was a banker’s dream of creating an all-digital loan against property journeys with no paper involved. I believe this aspiration can become a reality.

    I see hope in the increasing digitization of daily life. From making payments through Google Pay to accessing documents in DigiLocker, these building blocks are aligning. It is conceivable that property purchases and land records could end up in a DigiLocker in the future, although this will involve complex security measures.

    India Stack has played a crucial role in this journey, starting with Aadhaar’s identity layer, and now expanding to consent and data layers, including account aggregators. As these layers evolve, they will trigger a chain reaction, although predicting the exact outcome is challenging.

    One thing is certain: there’s hope, belief, and the right tools, capabilities, and environment to make it happen. If this transformation occurs anywhere in the world, it will be in India. The next step is to create an environment for India’s success story to benefit other communities and countries, promoting inclusive growth and economic development.

    While we aim for growth and revenue with ethical practices at Lentra, the ultimate goal is to see both Lentra and India thrive economically.

    StartupTalky: As you rightly said, India has definitely made significant strides in digital payments and fintech, surpassing the West in many aspects. So, moving on to my final question, what is your outlook for the industry, and what advice do you have for budding entrepreneurs?

    Mr. Handa: I would say take a fearless leap. When I started Lentra with my partner, DV, we were in our fourth year, incubating this idea. I came from a corporate background, having worked at Capgemini and Barclays. It was a pivotal moment, and I am glad I took the chance. Some things cannot be meticulously planned; they unfold in unexpected ways.

    Facing challenges, patience, and persistence are crucial. We have adopted an iterative approach, not starting with a grand plan but having a vision and adapting along the way. We have made mistakes but also made more right decisions, which got us this far. We cannot become complacent; curiosity and a hunger for growth are essential.

    We are fortunate to thrive in India, where the ecosystem is expanding, attracting global giants like Apple and Google. Indian entrepreneurs have the opportunity to create localized solutions that cater to India’s unique needs. Opportunities surround us, and we should take the risk, have courage, and improvise. It is a conducive environment with ample support and resources available. So, my advice is to go for it.

    StartupTalky: Thank you, Mr. Handa, for sharing your valuable insights. I have learned a lot, and I am sure our audience has too. We appreciate your time, and we look forward to future interactions whenever the opportunity arises.

    Mr. Handa: My pleasure. Thank you so much for having me. It has been a pleasure interacting with you.

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  • Government Policies Lead Indian Startups to Thrive

    The government of India’s various initiatives and policies facilitate the growth of startups in India. Experts believe that government policies have made accessing capital easier.

    India is now a booming economy for startups to prosper. Much of the credit goes to the Government of India for taking suitable initiatives to make the country a safe home for Indian startups to thrive. The recently concluded G20 summit has promised to facilitate global collaboration and raise a whopping $1 trillion by 2030, hence, Indian startups can see the Sun shining bright for long enough to give them the space and time to “frost themselves”’.

    It doesn’t matter which sector your business is catering to, whether it’s fintech, SaaS, or prop-tech; government initiatives serve businesses as a whole. This provides them with the opportunity to grow and meet the needs of not only people in the metros but also those in Tier 2, Tier 3 cities, and smaller towns.

    Kanika Bali, Partner, Optimyze Finance LLP, stated that India’s startup ecosystem has been on an unprecedented growth trajectory, establishing itself as the third-largest startup hub globally. With over 99,000 DPIIT-recognized startups spread across 670 districts as of May 2023, India’s prowess in innovation and entrepreneurship is undeniable. This remarkable achievement is not confined to a single sector, with startups emerging in 56 diverse industrial sectors, showcasing the nation’s versatility and dynamism.

    Ms. Bali also added that one of the standout achievements of government policies is the exponential growth in funding, reflecting investor confidence in India’s startups. Over the period from 2015 to 2022, there has been a staggering 15-fold increase in total startup funding. This infusion of capital has catalyzed innovation, enabling startups to scale and address critical challenges across various sectors.

    Jitender Ahlawat, Founder and Managing Partner, of HJA & Associates, said, “The legal environment for businesses has been greatly simplified thanks in part to the ‘Startup India’ program, which was introduced in 2016. It provides tax breaks for three consecutive financial years out of its first ten years since inception in order to lessen the financial strain on new startups and increase their appeal to investors. The program also makes it simpler for businesses to get cash by facilitating access to funds through programs like the Fund of Funds for Businesses (FoF) and credit guarantee schemes.”

    StartupTalky interacted with entrepreneurs and experts from a range of industries and the government has been praised for its various startup-friendly initiatives and policies.

    Prop-tech
    Hardware-tech
    Fashion
    Lending-tech
    SaaS
    Fintech
    Recommendations to the Government

    Prop-tech

    Mr. Saurabh Vohara, Founder and CEO, of ALYF, praised the government initiatives like Startup India and Digital India as these initiatives have given investors the trust and confidence to invest in startups.

    He said, “The government’s supportive policies have been instrumental in ALYF’s journey to democratize holiday home ownership in India. Initiatives like Startup India and Digital India have given investors trust and confidence to back startups like us who are trying to solve real estate challenges through technology and AI. We believe that further enhancements to government policies including tax incentives, streamlined approvals for new project launches, and joint research initiatives will definitely continue to foster innovation and drive economic growth in the real estate startup sector.”

    Dr. Nikhil Sikri, CEO and Co-founder, Zolostays, said, “The government’s decision to implement 12% GST on PG and student housing for rates less than Rs 1,000 per night and 18% for others is a progressive move that promises to bring greater clarity and efficiency. We strongly believe that this step has enhanced compliance, reduced the prevalence of unscrupulous practices, and ultimately resulted in a more sustainable co-living and student housing ecosystem.”

    Moreover, he also mentioned that the government initiatives in research and startup incubation serve as the cornerstone of informed decision-making in the real estate sector. Through rigorous analysis and data-driven insights, the government has steered the course of housing policies, urban planning, and market regulations, ensuring affordability, sustainability, and economic stability. These initiatives have fostered equitable housing solutions.“We are committed to offer our patrons with high-quality, affordable co-living accommodations, and we are positive about the government regulations that will aid to further enhance an organized ecosystem,” Dr. Sikri added.

    Hardware-tech

    Pramod Kathuria, Founder and CEO, of Easiloan, mentioned that there needs to be a balance between support and oversight. He said, “To boost startup growth in India, government policies should focus on enhancing funding accessibility through grants and tax incentives, simplifying regulations, and promoting education and research. Favorable international trade agreements and entrepreneur-friendly visas should also be prioritized for global expansion. Striking a balance between support and oversight is key.”

    Fashion

    Ms.Varija Bajaj, Founder of Office & You, Lela, and Varija Design Studios, shares that the support provided by organizations like Startup India and Invest India has been truly remarkable. They have gone above and beyond in their efforts. The incentives for startups, the invaluable mentorship, and guidance on investments have been nothing short of brilliant.

    “I believe these initiatives have led to the establishment of numerous incubation centers and have transformed the mindset of individuals who previously might not have considered investing in startups,” she added.

    Lending-tech

    Mr. Bhavik Vasa, Founder and CEO, of GetVantage, while talking about the credit deficit in the Indian SME sector mentioned that the recent government allocation announced in the Budget 2023 would foster the growth of small businesses.

    He said, “In recent budget sessions, the government has allocated substantial capital for priority sector lending and introduced corporate guarantee schemes to fuel the growth of small businesses. There is a strong awareness of the need to support these sectors to achieve the goal of becoming a $5 trillion economy. This involves identifying the importance of these sectors at the government and Finance Ministry levels, along with the active participation of industry players. The government’s efforts are aligning well with the growing importance of small businesses and startups in India, and there is a significant amount of capital earmarked for these sectors.”

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    SaaS

    Mr. Rajarshi Bhattacharyya, Chairman and Managing Director of ProcessIT Global, said. “If your startup is performing well for three years, you become eligible for tax exemptions. It can hardly get better than this. The ecosystem is designed to support your growth. The government, in collaboration with organizations like NASSCOM, organizes various mentorship programs under the Startup India initiative, providing people with invaluable guidance and support.”

    He also mentioned that among the top 15 cities globally for startups, three of them are in India – Bangalore, Mumbai, and Delhi NCR. This is a testament to the encouragement the government provides for individuals to become entrepreneurs, break free from mundane jobs, and pursue innovative ideas. Access to funding is available, and Indians are known for their brilliant minds. Mr Bhattacharyya also added that the policies have been established to enable startup companies to participate in large government tenders without needing to provide Earnest Money Deposits (EMDs). Membership in the Startup India scheme takes care of your credentials, eliminating the need for Pre-Qualification (PQ) criteria.

    Fintech

    However, in order to further boost startup growth in India, Ajit Thomas, Co-founder and CMO, of Cavli Wireless, said that the government should streamline regulatory processes, making it easier for startups to register and operate.

    “Reducing bureaucratic red tape can expedite business launches. Additionally, tax incentives for early-stage startups can alleviate financial pressures. Enhancing digital infrastructure, especially in Tier-2 and Tier-3 cities, will democratize entrepreneurial opportunities. Lastly, fostering stronger academia-industry linkages can spur innovation, while dedicated startup hubs can facilitate mentorship and networking. These changes can create a more conducive environment for startups to thrive and innovate,” he added.

    Ms. Bali said, “One of the standout achievements is the exponential growth in funding, reflecting investor confidence in India’s startups. Over the period from 2015 to 2022, there has been a staggering 15-fold increase in total startup funding. This infusion of capital has catalyzed innovation, enabling startups to scale and address critical challenges across various sectors.”

    “The startup landscape in India has become synonymous with innovation, disruption, and boundless potential. The Indian government has paved the way for startups to thrive. These schemes provide financial support, access to resources, and opportunities for growth,” she added.

    Recommendations to the Government

    However, Mr. Ahlawat highlighted some specific changes to the government policies to boost the growth of startups. These include simplifying business registration processes, expanding tax incentives, improving access to finance, enhancing intellectual property protection, expanding research and development grants, investing in education and training, expanding startup incubators and accelerators, facilitating government procurement, extending support programs for SMEs, forming international collaboration partnerships, ensuring regulatory clarity, developing comprehensive data privacy regulations, introducing incentives for startups focusing on sustainability and green technologies, facilitating exit strategies, and expanding e-governance initiatives.

    Garima Mitra, Co-Founder, of Treelife, also reminded that it is essential that India continues to streamline regulatory processes, improve access to capital, and enhance its education system to fully harness its innovation potential and sustain long-term economic growth.

    As we look ahead, it is imperative for the government to continue its proactive approach, streamlining regulations, enhancing infrastructure, and strengthening academia-industry collaborations to ensure that the Indian startup landscape continues to shine brightly on the global stage. The future indeed holds boundless possibilities for innovation, growth, and economic prosperity in India’s startup ecosystem.

  • Digitap’s Nageen Kommu Discusses Fintech Innovation, Data Protection, and Government Policies

    In the ever-evolving landscape of fintech innovation, one name has been making significant waves—Digitap. As a B2B SaaS provider in the FinTech market segment, Digitap specializes in API-based solutions for the financial sector.

    In a recent interaction, we had the privilege of speaking with Mr. Nageen Kommu, CEO, Digitap, who provided valuable insights into their unique approach to financial risk management and customer onboarding.

    Mr. Kommu shed light on their unwavering commitment to data protection, and the benefits of Indian startups following G20’s Startup20 initiative. He highlighted the significant role that government policies have played in fostering the growth of startups like Digitap in the dynamic Indian fintech market.

    StartupTalky: Good morning, everyone. I am Sayantan, delighted to introduce our guest today, Mr. Nageen Kommu, the CEO of the tech startup Digitap. Digitap specializes in developing API-based solutions for fintechs and banks, harnessing the power of AI and machine learning. Welcome to StartupTalky Mr. Kommu. How are you today?

    Mr. Kommu: Good morning, Sayantan. I’m doing well, thank you for having me on your show. It’s a pleasure.

    StartupTalky: It’s an absolute pleasure to have you here. Thank you for your time. I’m confident that our conversation will be enlightening for our viewers. Let’s dive right into the questions.

    Mr. Kommu: Certainly.

    StartupTalky: What makes Digitap’s AI and ML algorithms unique in financial risk management and customer onboarding, and how do you achieve top success rates in the market?

    Mr Kommu: That’s a great question, Sayantan. Our approach at Digitap revolves around providing alternative data solutions, which differ from traditional credit bureau scores. Traditionally, banks and financial institutions relied heavily on bureau scores to assess customers’ creditworthiness. If a customer’s score exceeded a certain threshold, they were approved for a loan, and if not, they were often disregarded. However, this approach only caters to the top 100 million Indian users, and it doesn’t account for those with scores below 730, who may still be reliable customers. Additionally, approximately 40% of the Indian population lacks any credit score because they’ve never taken a loan or credit card.

    Our challenge is to distinguish good customers from bad ones within this vast customer base of the next 400 million. We achieve this by focusing on alternative data sources that enable our clients, including NBFCs and banks, to underwrite these customers. The key is to identify unique data sources that set us apart from competitors. Having exclusive access to such data sources can provide a significant initial advantage, even if competitors eventually catch up.

    The next challenge is to convert unstructured data from these sources into structured formats, a step that most AI and ML companies can accomplish. The real differentiation comes in constructing meaningful models from this structured data. This is where we excel and distinguish ourselves from competitors. The process involves data structuring and the creation of scoring models tailored to specific use cases or outcomes, ensuring that our results stand out.

    Regarding success rates, the availability of data plays a pivotal role. The more data we have, the more refined our models become. We strive to strike a balance between identifying unique data sources and finding customers willing to allow us to use their data to train models effectively. It often involves partnering with a champion client, offering incentives, and leveraging their data to fine-tune our models before introducing them to the market.

    StartupTalky: Thank you, Mr. Kommu, for sharing your insights into Digitap’s unique approach and success factors. With the Digital Personal Data Protection Act, of 2023, now in place, how is Digitap planning to secure customer data effectively?

    Mr. Kommu: Certainly, Sayantan. The Digital Personal Data Protection Act, of 2023, brings several facets related to data protection into focus. Even before its implementation, the concept of account aggregators gained prominence in the BFSI segment. Adhering to this concept, the Data Protection Act mirrors many principles outlined in the account aggregator ecosystem. It provides guidelines on how to obtain customer consent, the duration of consent, the purposes for which consent is granted, and mechanisms for customers to revoke consent.

    At Digitap, we consider ourselves data processors. We don’t store data; we process it on behalf of our clients, who are the data fiduciaries. While there may not be specific guidelines for data processors, we voluntarily adopt the same policies and procedures that data fiduciaries follow. If a customer wishes to revoke consent, we ensure that the data is deleted, complying with the Act’s requirements.

    The Act also addresses data security during storage and transmission. We already have robust security mechanisms in place, as we deal with RBI’s outsourcing norms, which mandate data localization within India. We undergo regular audits for data localization and application penetration testing to assure our clients, especially those regulated by RBI, of the security and integrity of their data.

    Since we don’t store data, our role is primarily processing, and we strictly adhere to this distinction. West are paramount to us, given the sensitive nature of financial data.

    StartupTalky: Thank you, Mr. Kommu, for outlining your approach to data protection and compliance with the Digital Personal Data Protection Act. It’s crucial in today’s digital landscape. How will Indian fintech startups benefit from the G20 Startup 20 initiative, and do you anticipate increased competition from foreign players as a potential challenge?

    Mr. Kommu: Definitely it is an opportunity to unfold ourselves in the international market. However, in my opinion, the Indian fintech ecosystem is well ahead of a lot of countries in terms of innovations, especially from the West. You are now seeing a lot of startups mushrooming around the account aggregator ecosystem which is one of the flagship initiatives of the Indian government.

    Now we are seeing countries like UAE and France adopting our UPI ecosystem. So, we have that edge in terms of some of the technology and some of the innovations that we have gotten about, especially around the digital infrastructure like Aadhaar, UPI, and account aggregators. It will actually help us, the Indian startups, to take these initiatives outside our country and then start internationalizing them.

    Another place where definitely the Indian ecosystem or Indian startups will flourish is in our domestic market, where we have proven ourselves to be very effective in catering to a huge volume of the market. India’s market dynamics, marked by substantial volumes, allow us to fine-tune our models, especially those related to AI and ML.

    While these volumes might not be as readily available in regions like the UAE, Paris, or even the US, the experience gained from catering to India’s diverse and high-volume market equips us to address large-scale use cases and refine models accordingly.

    Also, I believe that there is a huge potential around the lendingtech as well. We ourselves find a lot of traction in the international market in this sector. This includes the development of LOS (Loan Origination System) solutions, LMS (Loan Management System) solutions, and underwriting solutions.

    While Western markets possess the digital infrastructure to support underwriting, there remains a substantial need for LOS and LMS solutions of the kind that Indian companies have developed at scale to serve a vast customer base within India.

    StartupTalky: So, who do you think has the upper hand? Indian or foreign companies?

    Mr. Kommu: When comparing the potential for Indian companies venturing abroad versus Western companies entering India, the advantage clearly favors Indian companies. It is completely because of the complexity and diversity of the Indian market, which can be challenging for Western companies to navigate.

    Western companies specializing in insuretech, lending tech, or payment solutions often find it difficult to adapt to India’s diverse payment landscape. In India, there’s a wide spectrum of payment preferences, ranging from traditional methods like checks to digital-first users who rely solely on UPI. Western companies may struggle to cater to the diverse needs of the Indian market, including IMPS, NEFT, RTGS, and more.

    Even in lending tech, Western companies are accustomed to underwriting based on digitized data, while India presents a different set of challenges. Many Indian customers, especially in Tier 3 and Tier 4 areas, lack digitized KYC documents or mobile number linkage, necessitating unique solutions. Indian companies, including ours, have already innovated in response to these challenges.

    Western companies entering India often face difficulties due to the market’s complexity and the pace of fintech innovations. For instance, a Chinese company, Advanced AI, found it challenging to adapt to the Indian market’s intricacies and competition.

    Indian companies, on the other hand, have had almost a 20-to-25-year history in terms of catering to the Western market. We know what works in the Western markets and that advantage will definitely play for us. The 1990s and early 2000s, it was an era of outsourcing where Infosys, Wipro, and TCS thrived. I believe this to be an era of outsourcing your complex data science and AI ML solutions. I think there is a huge scope for us to play in terms of looking for outsourcing of these solutions in the US or European market.

    StartupTalky: Thank you, Mr. Kommu, for your insights into how the Startup 20 initiative could impact Indian fintech startups and the potential challenges foreign players might face. Now, as we near the end of our discussion, could you share your perspective on the government policies and support that have facilitated the growth of startups in India?

    Mr. Kommu: Historically, in the fintech space, government support has been crucial due to the regulatory nature of this sector. From the perspective of lending tech, for instance, every user’s digital journey today is closely linked to various government policies developed over the years.

    Consider the impact of the Aadhaar Act, which revolutionized digital customer onboarding. It eliminated the need to visit a bank branch or produce physical documents for insurance, bank account openings, or loans. Instead, users can securely provide their entire Aadhaar details via OTP, thanks to the government’s efforts.

    Furthermore, government actions like the introduction of credit bureaus in 2006 dramatically expedited the underwriting process, allowing banks to assess customers in minutes or even seconds. Recent RBI regulations, particularly those related to UPI and payments, have spurred remarkable growth in companies like Paytm and a surge in startups in the UPI ecosystem. Looking ahead, the government’s Account Aggregator initiative is poised to revolutionize data sharing and address data availability challenges.

    These government-led initiatives have significantly reduced the time required to access financial services. Just a few years ago, it was unimaginable to open a bank account in under ten minutes or secure a loan in less than 15 minutes. Today, even in the home finance sector, some clients are achieving a 15-minute turnaround time for home loan approvals, all made possible by government digitization policies.

    Moreover, these policies have propelled financial inclusion. Previously, without digital access, financial products were limited to the top 10 or 50 million customers. Now, apps like Groww or Zerodha enable individuals in tier 3 and tier 4 cities to invest in stocks within 15 minutes, using only a mobile phone from their homes. This increased financial inclusion is a direct result of government initiatives.

    StartupTalky: What are your future plans with Digitap?

    Mr. Kommu: So, with the advent of account aggregator, we definitely feel that there is a huge opportunity for us, at least in India, to create differentiating data models that will help on several use cases pertaining to lending, marketing, and collections. Whether it be onboarding, underwriting, or collections payments, we see a huge potential, at least in the near term, for data-driven solutions across the value chain in the lending space itself.

    We still feel that there is a gap that needs to be addressed, which can be addressed with the usage of data coming out from the account aggregate ecosystem itself. And we also see a huge potential for international expansion, especially in data-driven models. When it comes to the usage of data, western countries have solved the problem of data availability in terms of digitizing every aspect of their data transaction, but I still believe that there are still gaps in their ability to use the data. We can utilize this, and that will be our expansion plans in the foreign market.

    StartupTalky: Thank you, Mr. Kommu, for sharing your insights and future plans. It’s evident that Digitap is at the forefront of fintech innovation, and your contributions to the industry are noteworthy. We wish you continued success in your endeavors.

    Mr. Kommu: Thank you, Sayantan. It was a pleasure being here, and I appreciate the opportunity to share our vision and insights.

    About Digitap

    Digitap empowers financial institutions through its extensive, alternate data-based risk management stack and high-tech advanced AI/ML solutions to new age internet has driven businesses for reliable, fast, and 100% compliant Customer Onboarding, Automated Risk Management along with Big Data enabled services like Risk Analytics and Customized Scorecards. The company’s proprietary Machine Learning Algorithms and Modules provide one of the best success rates in the market. Working with the largest digital lenders in India, the team brings together deep and vibrant experience in Fintech Product and Risk Management, Management Consulting, and Consumer Retail/E-commerce Business.

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  • CoinSwitch Kuber Success Story – How is it Easing Crypto Trading?

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.

    Indians are slowly and steadily considering Cryptocurrency as a safe mode of investment. Mostly the younger generation is taking interest in Cryptos. According to some reports, the average age of crypto investors in India is around 24 years. However, there are still many speculations about crypto trading and many investors are not comfortable with Crypto trading still. This is why the Bangalore-based startup, CoinSwitch Kuber was formed in 2017 to make crypto trading simpler for Indian Investors.

    The startup enables trading in several cryptocurrencies, including Bitcoin, Ripple, Ethereum, Litecoin, Dash, and many others, using INR. You just need to download the CoinSwitch Kuber iOS or android app and start trading. In this StartupTalky article, we are exploring more about CoinSwitch Kuber, the story behind the startup, and what the startup is offering, which includes CoinSwitch Kuber website, CoinSwitch Kuber reviews, CoinSwitch Kuber deposit, CoinSwitch Kuber investors, CoinSwitch Kuber login, CoinSwitch Kuber fees, and how it is growing!

    CoinSwitch Kuber – Company Highlights

    Startup Name CoinSwitch Kuber
    Also Known As Coinswitch.co
    Headquarters Singapore
    Industry Financial Services, Fintech, Trading Platform, Cryptocurrency
    Founders Ashish Singhal, Govind Soni, and Vimal Sagar Tiwari
    Founded 2017
    Valuation $1.9+ bn
    Current CEO Ashish Singhal
    CoinSwitch Kuber website coinswitch.co

    About CoinSwitch Kuber and How it Works?
    CoinSwitch Kuber – Industry
    CoinSwitch Kuber – Logo, Tagline, and Slogan
    CoinSwitch Kuber – Founders and Team
    CoinSwitch Kuber – Startup Story
    CoinSwitch Kuber – Mission and Vision
    CoinSwitch Kuber – Partnerships
    CoinSwitch Kuber – Business Model and Revenue Model
    CoinSwitch Kuber – Growth and Revenue
    CoinSwitch Kuber – Funding and Investors
    CoinSwitch Kuber – ESOPs
    CoinSwitch Kuber – LayOffs
    CoinSwitch Kuber – Competitors
    CoinSwitch Kuber – Challenges Faced
    CoinSwitch Kuber – Future Plans

    About CoinSwitch Kuber and How it Works?

    CoinSwitch Kuber is a cryptocurrency trading platform that aims to simplify investing in cryptocurrencies. CoinSwitch Kuber aggregates liquidity across major Indian and global crypto exchanges. The platform’s order matching engine provides the traders the best rates at the click of a button, thus making trading simpler than ever.

    “We discovered that the price of crypto swings between exchanges based on supply and demand when trading in crypto ourselves. Choosing the correct exchange is crucial if you want to obtain greater profits from the market. “We created an aggregator of various exchanges that offered us real-time data on which exchange is the best to trade at any particular instant to obtain the highest return,” co-founder Ashish says explaining the idea behind the startup

    CoinSwitch Kuber lets users trade across 100+ cryptocurrencies. Users can buy cryptocurrency using a credit or debit card at competitive prices on the CoinSwitch platform. After completing the KYC/AML processes, customers may use the pooled liquidity of India’s top exchanges to receive the best rate and trade instantly.

    The CoinSwitch Kuber mobile app comes with a simple user interface that makes crypto trading a breeze.

    While customers from over 200 locations in India invest in crypto through its platform, tier I cities account for 40% of its users, while tier II (36%) and tier III (24%) make up the majority of its clientele. On CoinSwitch, the average ticket size per user is 9,000 per month, however, this varies by city. The average ticket size in Tier I is Rs 11,600, compared to Rs 6,600 in tier II and Rs 3,500 in tier III.

    What’s interesting or concerning, depending on one’s perspective, is that the average age of a crypto investor on CoinSwitch is 24 years, and Singhal claims that crypto is the first investment in any asset class for 65% of his customers outside of savings bank accounts and fixed deposits!

    CoinSwitch Kuber – Industry

    India is one of the fastest-growing crypto markets, as per research firm Chainalysis, which said that the Indian market for crypto increased by a whopping 641% between July 2020 and June 2021.

    CoinSwitch Kuber – Logo, Tagline, and Slogan

    Company Logo of CoinSwitch Kuber

    CoinSwitch Kuber’s tagline says, “Buy, Sell, Trade.” CoinSwitch Kuber has launched a new campaign with the catchphrase “Trade Kar, Befikar.”

    CoinSwitch Kuber – Founders and Team

    CoinSwitch Kuber was founded by Vimal Sagar Tiwari, Govind Soni, and Ashish Singhal in 2017.

    Founders of CoinSwitch Kuber
    Founders of CoinSwitch Kuber

    Ashish Singhal

    Ashish Singhal is the Co-founder and CEO of CoinSwitch Kuber. Former Amazon employee who interned at Microsoft, Ashish Singhal, is a computer science graduate from Delhi’s Netaji Subhas Institute of Technology. Besides handling various technical roles in companies like Livspace.com and Reap Benefit, Ashish founded startups like CRUXPay (an open-source protocol for blockchain naming services) and Urban Tailor, which is the first of its kind at home tailoring services. He left the position at Urban Tailor in September 2016, but continued with CRUXPay, before stepping down from that too in April 2020.

    Govind Soni

    CoinSwitch Kuber Co-founder and CTO, Govind Soni was also a former Amazon and Livspace employee. Besides CoinSwitch Kuber, Govind co-founded CRUXPay along with Ashish and Vimal. Soni was also a student of the same college as Ashish, where he studied Computer Engineering, and served as the Co-founder and CTO also at CRUXPay, before stepping down from it in January 2021.

    Vimal Sagar Tiwari

    CoinSwitch’s Co-Founder and Chief Operating Officer (COO), Vimal Sagar, worked with organizations like Zynga and Accenture. He graduated from the Jaypee University of Information Technology. Vimal is also a Co-founder of CRUXPay, and is still retaining the positions of Co-founder and COO at CRUXPay.

    The CFO, CBO, and SVP quit their roles to start up a new initiative that will offer insights to web3 investors. Sarmad Nazki, Sharan Nair, and Krishna Hegde of CoinSwitch Kuber haven’t finalised the name of the startup yet, as per news dated July 8, 2022. Nazki has served in the position for a little more than a year. Nair joined CoinSwitch Kuber just after the company was launched in 2017, and held numerous positions during his long stint, whereas Hegde joined the unicorn crypto company in September 2021. CoinSwitch Kuber confirmed that the positions of CFO, CBO, and SVP will be taken up by Ramesh Bafna, Rishav Dev, and R Ventakesh. The trio has already been talking to Web3 focused-investors to raise a seed round ahead.

    The CoinSwitch Kuber team has an employee count that somewhere ranges between 501-1000, as per its Linkedin profile.

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    CoinSwitch Kuber – Startup Story

    The origin of CoinSwitch Kuber can be traced to the realisation of Govind, Vimal and Ashish, all of whom were computer engineers and friends, when they discovered that the price of cryptocurrency is dynamic. It varied slightly across all the prominent crypto exchanges, based on the demand and supply. Therefore, they thought that if the users wanted to get better returns from the market, especially when it comes to scale, they needed to choose a good cryptocurrency exchange. This is what made them decide to create an aggregator of crypto exchanges. Here, their main aim was to provide real-time data on the best prices and exchanges for cryptocurrencies to be traded.

    Ashish, Govind, and Vimal, who are all in their early thirties, have been friends since their college days when Ashish and Govind were batchmates, and Vimal was a mutual friend of theirs. They were also tech whizzes who competed in hackathons as a group. Almost every big hackathon in India was won by the trio, including the ones organised by Sequoia, Google, Amazon, and LinkedIn. Surprisingly, CoinSwitch was inspired by a hack that the trio subsequently made public.

    On one occasion, the founders-to-be of CoinSwitch created a simple crypto exchange aggregator in a hackathon, but little did they know that the hack would later turn into a full-fledged company.

    CoinSwitch Kuber was founded in 2017, and as soon as it launched, the startup started to take users on board at a rapid scale. The users “needed simplicity in the crypto world”, said Ashish, and this made the simple and intuitive nature of the product work. The only goal that the founders of CoinSwitch had while working on the product was to make crypto easy to understand and accessible to the masses.

    However, soon after CoinSwitch was launched as a product, RBI’s announcement came, where the body signaled a ban on the cryptos by asking the banks to refrain from supporting these currencies in 2018. This made the founders take their product, which was then simply known as “CoinSwitch”, to the global market.

    Eventually, Sequoia Capital backed their venture, thereby making the CoinSwitch foray into success. Though the platform turned successful indeed outside of India, the hearts of the CoinSwitch founders were set only on their country.

    This turned real when Supreme Court intervened, overruling the previous RBI ban, thereby making it an open season for the crypto-based businesses like WazirX, ZebPay, CoinSwitch and more. This was more than a silver lining for them. They soon launched CoinSwitch Kuber app just for the Indian market.

    CoinSwitch Kuber – Mission and Vision

    The CoinSwitch Kuber team believes in financial inclusion, which means that wealth, investment, and financial education should be accessible to all people.

    CoinSwitch Kuber’s mission statement says, “Our Mission is to challenge the status quo. We believe that our platform democratizes cryptocurrency investment so the everyday man can make his money work for him – without a fancy degree or a boatload of money.”

    The company’s vision is to make crypto trading simple and transparent.

    CoinSwitch Kuber – Partnerships

    NDTV and CoinSwitch Kuber have established a strategic collaboration to provide comprehensive and best-in-class cryptocurrency programming in August 2021. NDTV will create unique crypto destinations on gadgets360.com, ndtvprofit.com, and ndtvindia.in as part of this relationship. This bridge expansion includes a refreshing show on NDTV 24X7 and NDTV India every other weekend.

    The need for trustworthy and accurate information is more important than ever as cryptocurrencies become more mainstream and more individuals begin to evaluate this asset class. With NDTV’s credibility and confidence, as well as CoinSwitch Kuber’s subject expertise and powerful trading platform, this collaboration aims to bridge that gap.

    CoinSwitch Kuber Partners with Startup Karnataka for Blockchain Hackathon

    The Blockchain Hackathon, Building Future Cities, an initiative decided by Startup Karnataka of Karnataka government, and Tejasvi Surya, Bengaluru South MP, will also have CoinSwitch as its partner. This initiative is aimed to recognize blockchain-based solutions and bring them to the citizens from across the country, in order to dissolve the everyday problems they face. Sequoia India will also be backing this hackathon.

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    CoinSwitch Kuber – Business Model and Revenue Model

    CoinSwitch Kuber is one of just a few cryptocurrency companies currently functioning. Users may acquire shards of various major cryptocurrencies on the crypto market. On CoinSwitch, for example, a user may buy bitcoin and other currencies in tiny sachets for as little as 100 Indian rupees ($1.30), which proves really profitable for the users. Besides, where other crypto exchanges came up with products for the traders who are acquainted with the order books, and are well-versed with buying/selling orders, CoinSwitch distinguished itself by targeting the users who hadn’t see an order book before, and wasn’t aware of what it was.

    CoinSwitch Kuber presents itself as an aggregator and don’t charge the users, in contradiction to other crypto exchanges, which usually charge transaction fees from the users. CoinSwitch Kuber, instead, of a maker, negotiates with the crypto exchanges on transaction fees.

    Speaking on the business and revenue model of CoinSwitch Kuber, Founder and CEO, Ashish Singhal said, “We give a fixed price to users and aggregate supply on the backend, Our execution engine is where the revenue comes from. But going forward, earning models may evolve as innovations and regulations come into play.”

    CoinSwitch Kuber offers its users free trading, deposit, and withdrawal facilities for the first 100 days. After that, a fee is charged on each transaction made through the platform. As per the terms of the company, there is no fee for the transfer of digital assets to the CoinSwitch Kuber wallet, however, withdrawal of digital assets from the wallet may attract charges. The platform also charges for the transfer of fiat currency through credit/debit cards or net banking.

    CoinSwitch Kuber – Growth and Revenue

    CoinSwitch Kuber has managed to impress investors with its concept and performance. In addition to Tiger Global Management’s $25 million investment in April 2021, Sequoia Capital, Ribbit Capital, Paradigm, Kunal Shah, the creator of Cred, and others have backed CoinSwitch. With the recent funding received from Andreessen Horowitz and Coinbase Ventures in October 2021, CoinSwitch Kuber reached Unicorn status with a valuation of $1.9 billion.

    CoinSwitch Kuber boasts of witnessing the highest number of downloads among the crypto startups in India in 2021 when it was downloaded more than 6.1 mn times.

    CoinSwitch Kuber is the most download crypto exchange app in 2021
    CoinSwitch Kuber is the most downloaded crypto exchange app in 2021downloaded

    Ever since CoinSwitch was started and was taken global after the RBI ban, the company started seeing huge transactions through their app. Within just 2 years, CoinSwitch Kuber has seen more users onboard its app than any other crypto exchange in India. This growth has been mainly due to the simplified UX that the app brought in, and its decision to not provide the users with certain trading features.

    Singhal points out that unlike other startups they did not knock on the investors’ doors.

    “We did not reach out to Tiger Global for funding. They contacted us and expressed their willingness to invest in our company. Tiger doesn’t invest less than $100 million but we said we just need $25 million,” says Singhal.

    Kuber claims to have over 15 million users in India, and the monthly active user count of CoinSwitch Kuber is over 7 million. It has also been disclosed that more than half of them are under the age of 25. CoinSwitch Kuber claims to have handled $5 billion in transactions in the last 11 months.

    The firm intends to expand its operations outside cryptocurrency in the future.

    “We intend to expand into traditional finance, such as equities, mutual funds, exchange-traded funds, and bonds, and provide a full portfolio on our platform to retail customers,” says the company.

    “We are not a capex-intensive business, and don’t need too much money. Hence, our EBITDA margins are in the range of 60-65%,” reveals Singhal.

    CoinSwitch Rolls Out the Web3 Discovery Fund

    CoinSwitch has launched the Web3 Discovery Fund, which is a fund that will invest in and help incubate early-stage startups that are engaged in building blockchain solutions for the Web3 space. This Web3 startups funding initiative of CoinSwitch is currently aiming to help up to 100 Indian startups, as per the reports dated August 10, 2022. Ashish Singhal, the CoinSwitch Co-founder and CEO stated that the fund has already received an initial corpus of $10 mn and the company is further looking to raise some more funds from marquee investor partners ahead.

    CoinSwitch: some of the major growth highlights are:

    • It has over 2 crore+ users as of February 2024
    • It is backed by some of the world’s leading investors including a16z, Tiger Global and Sequoia Capital India.

    Financials

    CoinSwitch Financials
    CoinSwitch Financials
    CoinSwitch Financials FY22 FY23
    Operating Revenue Rs 249 crore Rs 46 crore
    Total Expenses Rs 763 crore Rs 482 crore
    Profit/Loss Loss of Rs 513 crore Loss of Rs 385 crore

    EBITDA

    CoinSwitch FY22-FY23 FY22 FY23
    EBITDA Margin -204% -396.3%
    Expense/Rs of Op Revenue Rs 3.07% Rs 10.57%
    ROCE -25% -24%

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    CoinSwitch Pro

    On November 22, 2023, CoinSwitch launched the multiexchange trading platform CoinSwitch Pro on November 22, 2023. This platform marks a significant advancement for cryptocurrency enthusiasts and traders. This cutting-edge platform not only provides users with a comprehensive view of multiple tokens across various exchanges but also empowers them to make informed decisions by comparing prices and selecting the most suitable options.

    What sets this platform apart is its seamless functionality, allowing users to effortlessly trade crypto assets in INR across a multitude of exchanges, all through a single login. This streamlining of the trading process not only enhances the user experience but also signifies a pivotal step towards greater accessibility and user-friendliness within the cryptocurrency realm.

    There is a variable transaction charge associated with using the cross-exchange platform, depending on the crypto exchange that is used. The CoinSwitch Pro platform stands out for its flexibility in serving various users and exchangers.

    CoinSwitch Kuber – Funding and Investors

    CoinSwitch Kuber has raised over $300 mn over 4 funding rounds. It is now counted among the unicorn startups of India, with a valuation of over $1.9 bn.

    Date Round Amount Lead Investors
    October 6, 2021 Series C $260M Andreessen Horowitz, Coinbase Ventures
    Apr 22, 2021 Series B $22.7M Tiger Global Management
    Jan 13, 2021 Series A $15M Paradigm, Ribbit Capital
    Mar 24, 2018 Seed Round $1.5M –

    Andreessen Horowitz is a CoinSwitch Kuber investor, who invested for the first time ever in India in the $260 mn funding round of CoinSwitch, and was joined by Coinbase Inc., which turned CoinSwitch into a unicorn. Some other investors of CoinSwitch are Tiger Global, Paradigm, Ribbit Capital etc.

    CoinSwitch Kuber – ESOPs

    CoinSwitch Kuber recorded their first-ever ESOP buyback programme on March 21, 2022, worth $2.5 million. This buyback round was a mixture of funding that came from both the internal and external sources.

    CoinSwitch Kuber – LayOffs

    CoinSwitch in a recent move, has undertaken a strategic restructuring initiative, resulting in the reduction of its workforce by 8%. This decision translated to approximately 44 employees being laid off from various departments. Presently, CoinSwitch boasts a total workforce of 519 employees, as per their LinkedIn profile.

    The impact of these layoffs has predominantly been felt within the customer support team, where the majority of the affected employees were stationed. While such decisions are often undertaken as part of broader efforts to optimize and realign company resources, they undoubtedly bring about significant transitions for both the organization and the employees involved.

    In the official statement company spokesperson said, “we right-sized our customer support team to align with the present volume of customer queries on our platform. This impacted the roles of 44 members of our customer support team, who voluntarily resigned from their roles after a detailed discussion with their managers earlier this month.”

    CoinSwitch Kuber – Competitors

    To mention, the top 10 competitors of CoinSwitch Kuber are:

    CoinSwitch Kuber – Challenges Faced

    CoinSwitch Kuber employs over 120 people and has over 4.5 million users on its network. In comparison to other applications on the market, the app provides consumers with a clean UI and UX design. However, it was recently discovered that the app does not support UPI payments.

    On April 21, 2021, the organization announced on all of its official social media accounts that INR deposits in the CoinSwitch Kuber App will be disabled. CoinSwitch Kuber said on Twitter that the firm has temporarily blocked all INR deposits owing to unforeseen problems with their banking partner. The issue was later resolved and now INR deposits are enabled.

    Cryptocurrency is a murky area in India. Despite the legalization of crypto investments in India, there are many fears and doubts related to the topic. When it comes to difficulties, Ashish believes the company’s sole issue is teaching people in India about cryptocurrencies and the ecosystem.

    CoinSwitch Kuber had got into trouble in association with the idea of lending feature with the SEC, and as a result, Ashish had to drop the idea. However, the founders still are of the opinion that they would be able to use the lending and stakes feature to utilise them for earning revenues in the future. They have already started working to make it possible by working with regulators and gaining their confidence.

    As the trading of cryptocurrency lacks defined regulations, CoinSwitch Kuber temporarily paused crypto withdrawals.

    CoinSwitch Received ED Notice in Association with FEMA investigation

    CoinSwitch reportedly received a notice from the Enforcement Directorate (ED) along with some other cryptocurrency firms like CoinDCX in association with the Foreign Exchange Management Act (FEMA) investigation. Here, ED is determining whether or not these companies were engaged in offences related to foreign currencies. On this, CoinSwitch mentioned that it has received notifications from ED and is ready to comply with them, as per reports dated July 12, 2022.

    CoinSwitch Kuber – Future Plans

    CoinSwitch has revealed plans to build a cryptocurrency investment platform by June 2024 that is targeted at retail investors as per news report of March 11, 2024. Through the provision of user-centric technology, this program seeks to democratize access to digital asset trading and enable users to navigate investments with confidence.

    FAQs

    What does CoinSwitch Kuber do?

    CoinSwitch Kuber is a crypto trading platform for individual investors that is available only in the Indian market via a mobile application. It enables trading in several cryptocurrencies, including Bitcoin, Ripple, Ethereum, Litecoin, Dash, and many others, using INR and is available as a mobile application (INR).

    Is CoinSwitch Kuber an Indian company?

    Yes, CoinSwitch Kuber is an Indian company.

    Where is the CoinSwitch Kuber headquarters?

    CoinSwitch Kuber is currently headquartered in Singapore.

    Which companies do CoinSwitch Kuber compete with?

    Unocoin, WazirX, CoinDCX, Instamojo, Glidera, ZebPay, SmartCoin, IPaxful, Bitxoxo Bitcoins, and Coinbase are the top ten competitors of CoinSwitch Kuber.

    When was CoinSwitch Kuber founded?

    CoinSwitch Kuber was founded in 2017.

    Who founded CoinSwitch Kuber?

    CoinSwitch Kuber was founded by Vimal Sagar Tiwari, Govind Soni, and Ashish Singhal in 2017.

    What is the CoinSwitch Kuber website?

    The CoinSwitch Kuber website is coinswitch.co

    What are the CoinSwitch Kuber fees?

    CoinSwitch Kuber doesn’t ask the users anything such as the CoinSwitch Kuber fees. It rather poses itself as an aggregator and negotiates with the crypto exchanges on transaction fees.

    How is CoinSwitch Kuber login done?

    The CoinSwitch Kuber login procedure is really easy where the users need to download the app of the company and then they need to first have an account to log in to the same, with the same login credentials.

    What are CoinSwitch investors?

    Some of the prominent CoinSwitch investors are Ribbit Capital, Andreessen Horowitz, Tiger Global, Coinbase Inc., Sequoia, Paradigm and others.

    What was the CoinSwitch deposit issue?

    CoinSwitch deposit of rupees was temporarily disabled, but it was fixed after 2 long weeks.

    What is wrong with CoinSwitch Kuber withdrawals?

    When it comes to CoinSwitch Kuber withdrawals, the company has announced that it has temporarily disabled the withdrawal of cryptocurrencies.