Every year tens of students and professionals go out of India to pursue higher education and work. Even after spending months in the new country, they struggle to get credit cards from local banks, and pay a premium to use a range of other financial services.
Banks in the US, or for that matter in most other countries, rely on local credit scores to determine the eligibility of potential applicants. For example, if a person had a great credit score in India, he would not hold any water for banks in foreign lands.
That was a takeaway Raghunandan jiFounder of the ride-healing firm TaxiForSure (Sold to local giant Ola), Returned to India after the trip. After combining months of research and a team, Raghunandan believes he has a solution.
On Wednesday, he announced Bounce around, A budding platform aimed at global citizens. The startup works with banks in the US, India and other countries to provide consumers with access to financial products to cough up without paying any premium or without any security deposit.
In an interview with TechCrunch, Raghunandan said that the startup reduces the risks, which have enabled banks abroad to expand their services to capable customers. “Consumers can open an account with us and access all banking services as if they are banking with their national bank,” he said.
As part of the announcement, Raghunandan said that two-month-old Jhel has raised $ 15 million in a seed financing round led by Excel and Lightspeed. Many high-profiles including Blum Ventures and Kunal Shah (founder of Credit), Ashish Gupta (previously founder of Helion), Greg Kidd (known for his investments in Twitter and Ripple), Rahul Mehta (Managing Partner of DST Global) Angel Investor, Rahul Kishore (Senior Managing Director of Kotyu Capital) also participated in the round Founding collective (Which has supported Airtable and Uber), what is its first investment in an Indian startup.
Bezol Somia, Lightspeed India Partners, said in a statement, “Individuals with financial identity across multiple geographies need seamless global financial solutions and we believe that the team’s strong identification with the problem provides them with compelling and innovative financial experiences Will enable. “
Raghunandan admitted that some other startups are also trying to solve this challenge, but added that other firms are not using consumer’s credit history from their native nation. “We are the only one who is looking at this problem in a completely different light. We are not trying to solve the problem in the destination country where consumers face challenges. We are looking for a solution indigenously, where consumers already have a reputation and credit history, ”he said.
Once a customer has access to credit cards and other financial services in the new nation, they can quickly broaden their local credit history, something that would otherwise take years, he said.
“The global civic community is underlined to a great extent in terms of access to financial services and we believe that there is a huge market opportunity for Zway. Raghu has a proven track record as a founder and we are happy again with him on his latest venture. The team’s passion and commitment is commendable and we are positive that Zolve will create tremendous value for this community, ”said Anand Daniel, partner at Excel.
Headquartered in San Francisco and Bangalore, Zolve also offers a range of compelling facilities for those who do not plan to visit foreign lands. For example, if you are in India, you can use Zolve to buy shares of companies listed on US exchanges. Raghunandan said that you can buy bitcoins and other cryptocurrencies from US or Europe-based exchanges.
The startup, which has already entertained more than 5,000 customers, has created revenue-sharing arrangements with its banking partners. Raghunandan said that since Zolve currently ships customers in India and generates most of its revenue from banking partners in the US, it is already working on a profitable model.