The Rise of Cross-Border Payment Solutions: Skydo's Journey and the Future of Fintech in India

August 14, 2024, 6:10 am
Skydo
Skydo
B2BBusinessFinTechITOwnServiceTimeVirtual
Location: India, Karnataka, Bengaluru
Employees: 11-50
Founded date: 2022
In the bustling world of fintech, cross-border payments are the lifeblood of global commerce. They connect businesses, facilitate trade, and empower entrepreneurs. One company making waves in this arena is Skydo, a cross-border payments platform that recently secured $5 million in a pre-Series A funding round led by Elevation Capital. This investment is not just a financial boost; it’s a signal of the growing demand for efficient international payment solutions.

Founded in 2022 by Srivatsan Sridhar and Movin Jain, Skydo aims to simplify the complex web of cross-border transactions. The platform caters to small and medium-sized businesses (SMBs), exporters, and freelancers, offering a flat-fee pricing model that promises to save users up to 80% on foreign exchange transaction costs. This is no small feat in a world where traditional banking fees can be a significant barrier to entry for many businesses.

Skydo’s journey began with a vision: to empower Indian exporters and facilitate seamless international transactions. Since its inception, the platform has processed over $100 million in payments, serving more than 6,000 Indian exporters. The company operates under the Reserve Bank of India’s (RBI) Online Payment Gateway Service Provider (OPGSP) framework, which is crucial for compliance and trust in the financial ecosystem.

The recent funding will enable Skydo to expand its reach. The company plans to acquire payment licenses across various geographies, allowing it to operate on a global scale. This move is essential for businesses looking to navigate the complexities of international trade. With a goal to process $750 million by 2025, Skydo is poised for rapid growth.

But Skydo is not alone in this space. The fintech landscape in India is teeming with innovation. Eximius Ventures, another player in the investment arena, is focused on nurturing early-stage startups in sectors like fintech, SaaS, and healthtech. Founded by Pearl Agarwal, Eximius Ventures aims to streamline fundraising for Indian entrepreneurs, providing initial investments of up to $500,000. This support is crucial during the challenging early days of a startup’s journey.

Agarwal’s vision stems from her experiences in a Tier 4 town in Orissa, where she witnessed the struggles of local entrepreneurs. Her journey from investment banking in the US and UK to founding Eximius Ventures reflects a commitment to fostering innovation in India. The firm has already made 21 investments, including notable names like Skydo and Vegapay.

The synergy between Skydo and Eximius Ventures exemplifies the collaborative spirit of the Indian startup ecosystem. As Skydo expands its services, the backing from Eximius Ventures provides not just capital but also strategic guidance. This partnership highlights the importance of relationships in the startup world. It’s not just about the money; it’s about mentorship, support, and shared vision.

The fintech sector in India is evolving rapidly. With a growing number of startups entering the market, the competition is fierce. However, this competition drives innovation. Companies are constantly seeking ways to differentiate themselves. Skydo’s flat-fee model is one such innovation. It simplifies the payment process, making it more accessible for businesses of all sizes.

Moreover, the demand for cross-border payment solutions is on the rise. As businesses increasingly operate on a global scale, the need for efficient, cost-effective payment methods becomes paramount. Skydo’s focus on compliance and risk monitoring is crucial in this context. In a world where regulatory landscapes are constantly changing, having a robust compliance framework can be the difference between success and failure.

The future of cross-border payments looks promising. With advancements in technology and a growing emphasis on digital solutions, platforms like Skydo are well-positioned to thrive. The integration of artificial intelligence and machine learning into payment systems could further enhance efficiency and security. As these technologies evolve, they will reshape the way businesses handle international transactions.

In conclusion, the rise of cross-border payment solutions is a testament to the changing landscape of global commerce. Skydo’s recent funding round marks a significant milestone in its journey, but it’s just the beginning. With the support of investors like Eximius Ventures, the company is set to redefine how businesses engage in international trade. The fintech ecosystem in India is vibrant and full of potential. As more startups emerge, the focus on innovation and collaboration will drive the industry forward. The future is bright for cross-border payments, and companies like Skydo are leading the charge.