Small FinTech Company Investment Opportunity in Bangalore, India

Please find the status below:

Yes Bank.

We are working very hard to get the product live this month.

There is only 1 outstanding feature which is on RBI Reporting. We are waiting for Yes Bank to tell us what data they want and where to send it.

When it goes live, they have over 1 Lakh Business Correspondents who will get deposits for them.

With a ticket size of ₹ 5,000 and average collection of at least 100 for say 3 months from 50,000 Business Correspondents only, will give them ₹ 7,500 Crores.

We get 0.1% of ₹ 7,500 Crores giving us ₹ 7.5 Crores.

Other Banks.

We will start POC with IDBI and Axis Bank. Other banks in pipeline are SBI, ICICI and CSB.

We are very hesitant to start with SBI as TCS is their partner and do not want them to copy our product. TCS incidentally wanted to tie-up with us but we refused as wanted to Go Alone.

Partners.

We have signed up with 4 partners and many more want to market and sell our product.

The partnership agreement has 3 main clauses:

If only sales then 20% of Revenue.

If sales and integration then 20% of Revenue + Integration Fees.

If sales and Back-office functions, along with 100% support to banks then 80% of revenues.

Investment.

The Ministry of Electronics and Information Technology (MEITY) will invest in our company through Software Technology Parks of India (STPI) under MEITY.

They will invest ₹ 10 Lakhs in the our company.

Also Yes Bank will take a 2% to 5% stake once we Go Live.

B2C Model.

We will start the B2C model very soon as this will be a major disruptor in the banking space. We may tie up with Google as our partner here.

With B2C model our main competitor would be Paisa Bazaar.

Other Products.

Yes Bank wants to use our AI Engine to help them in Loans, Annuity and Mutual Funds.

We also plan to launch our Legal Product for Banks called Advocates Assistant.

The Supply Chain Finance ERP Product has received interest to marketed by White Labelling it.

We plan to also launch the AI Engine for Loans, Annuity and Mutual Funds in our B2C offering apart from launching next version.

Valuation.

Out Valuation Report will go up further once we Go Live with Yes Bank. Currently it is INR 7.99 Crores.

Series A.

We are gearing up for Series A once we Go Live with Yes Bank and start the POCs with IDBI and Axis Bank.

We plan to raise USD 7 Million from where we will retire our loans and start the buy-out of the shares from our shareholders who want to exit.

Working.

Currently we are working from Home and plan to return to office from early next year.

Office Space.

We will be taking an office space in Mumbai as per the contract with Yes Bank and start placing people there.

Recruitment.

Our target is to increase our heads from current 7 to 15 by next year.

Banking Software - Innovative patent applied for flexible deposits.

Supply chain finance.

Laptops, printers, chairs, tables, RO plant, and IP.

1,500 Sq Ft rented office. 2nd floor, front road facing.