We’ve all encountered those muddled pre-travel currency exchange issues, wherein you have to go to a brick-mortar currency exchange store and fight for the best possible rates. However, Bangalore-based online currency exchange startup FxKart.com may just be the solution we were looking for. Not just that, its India-focused solution has gained investor confidence too, as it has raised a $2 Million seed round to fuel up its growth.
The round was led by FxKart’s founder Dr Mushtaq Shah and its Strategic Advisor Dr Faraz Naqvi. This seed funding is in their private individual capacities. Dr Mushtaq Shah based in UK, is the co-founding partner of U.S.-based hedge-fund, Quantmetrics Capital Management.
FxKart.com first aggregates exchange rates from all of its partner exchanges. You can then simply input the currency you wish to exchange for, and FxKart does the rest. It will find out the deal most suitable to you, by enlisting various aggregated currency exchangers, and giving you the best possible bargain for your input amount.
FxKart founder and Equinox Capital Management’s ex-Head of Research Dr Mushtaq Shah tells us,
Fxkart’s objective is to get to the consumer the best deal on forex transactions while helping dealers get visibility with consumers and hence more volume.
The entire platform is location-sensitive, in the sense that it enlists Foreign Currency exchange rates from various forex dealers in your city, giving you choice to choose your preferred dealer not only on the basis of ‘best rate’ but also on other factors such as proximity of the outlet to one’s location and option of delivery provided by the dealer.
But then, Fx rates are changing every second, what do you do about that ? Well, FxKart asks all its dealers to supply their live rates in real-time, thus giving you the most fair rates, without factoring in the time you book your currency exchange. And once rates go live, it’s the dealers who will now bid for your Fx requirement in a 5 minute bidding window ensuring that you get the best and the most competitive Fx rate.
FxKart.com neither levies any membership fees nor does it come with any hidden charges. All Fx rates offered by dealers are presented to you in real time ensuring transparency. No kick backs, no favors.
Better still, the startup gives you two great options to collect your exchanged currency. You can either head over to the dealer whose rates you accepted, or get the exchanged currency delivered at your doorstep by paying a minimal delivery fee.
Along with raising fresh capital, the startup has also announced the launch of a new (and India’s first) Forex booking app, giving you the power to get your currency exchanged at the helm of your fingertips. Now that‘s called convenience !
Within just weeks post its commencement, FxKart claims to have achieved an online transaction volume of more than INR 3 crores (approx. $480K) with 25+ pan India dealers, 500 branches and 500+ customers. In the next six months of operations, the company is targeted to achieve an online transaction of more than 35 (approx. $5 Million) crores with 100+ pan India dealers, 2000 branches and 6000 customers.