FtCash is a startup from India that helps small businesses and merchants with financial services. Here is how it all began.
FtCash was launched in Mumbai, India in mid-2015. The company's vision is to empower micro-merchants, small businesses, and home-based entrepreneurs through mobile payments and loans[2][4][5>.
The founders saw a big problem: many small merchants did not have access to credit. Less than 4% of the 60+ million small merchants in India had access to credit. FtCash aimed to change this by providing financial inclusion using digital payments and loans[2).
The company started with a simple idea: to enable offline payment transactions quickly by aggregating all payment methods, including credit cards, debit cards, mobile wallets, and PayPal, under one channel[1).
The founding team of FtCash includes Deepak Kothari, Sanjeev Chandak, and Vaibhav Lodha. These founders come from strong backgrounds in finance and technology[4][5).
Deepak Kothari, Sanjeev Chandak, and Vaibhav Lodha have experience in various fields, including finance and technology. This mix of skills helped them build a robust platform for small merchants[4).
The team was incubated by PayPal, which gave them the initial push to grow. Later, they also partnered with MasterCard to expand their services globally[2][3).
FtCash has come a long way since its inception. Here’s how the company has evolved over time.
Initially, FtCash focused on providing a full-stack payment solution to small merchants. This included both software and hardware to initiate digital payments quickly[1][2).
Over time, the company expanded its services to include lending. They use a proprietary algorithm to assess the credit-worthiness of merchants based on their transaction data and other factors like psychometric analysis[2).
Today, FtCash is not just a payment solution but a comprehensive financial service provider for small businesses. They lend around Rs 3 lakh to small businesses and have seen significant growth in transactions and loans[1][2).
FtCash has achieved several key milestones that highlight its growth and success.
FtCash has expanded its product portfolio significantly since its inception.
Originally, the company focused on digital payments. However, they soon realized the need for lending services among small merchants. Today, their product portfolio includes both payment solutions and lending services[1][2]).
The payment solution allows merchants to initiate digital payments quickly, while the lending service provides loans based on the merchant's cash flow from the digital payment solution. This holistic approach has helped FtCash grow rapidly[2]).
In addition to these core services, FtCash also uses artificial intelligence and machine learning to improve risk assessment and loan processing. This technological advancement has made their services more efficient and reliable[2]).
FtCash relies heavily on technology to provide its services. Here’s a look at their technology infrastructure.
FtCash provides a full-stack payment solution that includes both software and hardware. This allows small merchants to initiate digital payments in less than 5 minutes[1][2]).
The platform aggregates all payment methods under one channel, making it easy for merchants to manage transactions. This includes credit cards, debit cards, mobile wallets like Paytm and Mobikwik, and PayPal[1]).
The proprietary algorithm used by FtCash to assess credit-worthiness is a key part of their platform. It uses transaction flow data and other data points like psychometric analysis to provide loans to underserved SMEs[2]).
FtCash takes security and compliance very seriously.
The company ensures that all transactions are secure and compliant with financial regulations. This is crucial for maintaining trust among their merchant base and ensuring the smooth operation of their services[2]).
While specific details on their security framework are not readily available, it is clear that they adhere to industry standards and best practices to protect merchant data and transactions[2]).
FtCash has been innovative in the fintech industry in several ways.
One of the key innovations is the use of artificial intelligence and machine learning to improve risk assessment and loan processing. This has made their lending services more accurate and efficient[2]).
The company’s approach to financial inclusion by providing loans based on cash flow from digital payments is also innovative. It addresses a significant gap in the market where many small merchants lack access to credit[2]).
FtCash’s partnership with major players like PayPal and MasterCard has also been a significant innovation, enabling them to offer global merchant services[2][3]).
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FtCash, a fintech startup from India, has made a significant impact on the market since its launch in 2015. Here’s how it has grown and expanded its services.
FtCash has seen remarkable growth in its user base. The company serves over 30,000 merchants and has impacted more than 150,000 families through its services[2).
The user base includes micro-merchants, small businesses, retail chains, and home-based entrepreneurs. FtCash provides these users with the power of mobile payments, making it easier for them to conduct offline payment transactions quickly[1).
The company's user-friendly approach and innovative solutions have helped in scaling up its user base. For instance, FtCash offers software and hardware-based full-stack payment solutions that can be set up in less than 5 minutes, making it highly accessible to small merchants[2).
FtCash has been expanding its market share by targeting underserved segments. There are over 60 million small merchants in India, but less than 4% have access to credit. FtCash aims to change this by providing financial inclusion through digital payments and loans[2).
The company's strategic partnerships and innovative use of technology have helped it expand its market share. For example, FtCash uses its proprietary algorithm to assess the credit-worthiness of merchants, enabling them to access institutional finance[7]).
This approach has led to a significant increase in the income of merchants who have received loans. Merchants who received loans above Rs. 100,000 have seen a 30% rise in their yearly income[7]).
FtCash is committed to financial inclusion, particularly for small merchants. The company provides loans based on the cash flow from its digital payment solutions. This approach ensures that the loans are disbursed and collected efficiently through the payments platform[7]).
The financial inclusion initiatives also involve tracking each loan to understand its use and repayment. This ensures that the funds are used effectively and that the merchants benefit from the loans[7]).
FtCash's efforts have been recognized globally. The company was awarded $250,000 by MIT for being the Most Inclusive Innovation Company Globally[8]).
FtCash has had a robust financial journey since its inception. Here’s a look at its revenue growth, path to profitability, and investment rounds.
FtCash generates revenue through commissions on transactions and lending. The company has seen a significant growth in its transaction volume, with over $80 million in yearly transactions[7]).
The revenue growth is also driven by the increasing number of merchants using its services. With over 30,000 merchants on board, FtCash has been able to scale its revenue consistently[7]).
The company’s effective use of in-house calling teams, referral programs, and PR in vernacular newspapers has helped in scaling the business without a significant marketing budget[7]).
FtCash is on a path to profitability through its efficient loan disbursement and collection process. The company has a low delinquency rate of 1.7% on its loans, which indicates a strong repayment track record[7]).
The use of technology, such as proprietary algorithms and psychometric analysis, helps in assessing the credit-worthiness of merchants accurately. This reduces the risk and makes the lending process more profitable[7]).
FtCash aims to digitize end-to-end loan processing, disbursal, and collection, which will further streamline its operations and improve profitability[7]).
FtCash has received significant investments since its inception. The company has raised a total of $10.2 million in funding from investors such as IvyCap Ventures Advisors Private Limited, Singapore Angels, Tracxn labs, and Accion Venture Lab[8]).
The major investment round was a Series A funding of $7.1 million in May 2019. These investments have helped FtCash in expanding its services and improving its technology[8]).
The company’s valuation has increased with each investment round, reflecting its growing market impact and financial performance.
FtCash has formed several strategic partnerships to enhance its services and reach. Here’s a look at its banking collaborations, merchant partnerships, and technology alliances.
FtCash was incubated by PayPal, which has been a significant partner in its journey. The company is also in a strategic partnership with MasterCard to enable merchant services globally[7]).
These partnerships have helped FtCash in accessing global best practices and technologies, enabling it to provide better services to its merchants. The collaboration with MasterCard has been particularly beneficial in expanding its merchant services[7]).
The company’s senior executives come from prestigious institutions like Deutsche Bank, Capital One, World Bank, and KPMG, which adds to its banking and financial expertise[7]).
FtCash works closely with merchants to provide them with comprehensive payment solutions. The company aggregates all payment methods, including credit cards, debit cards, mobile wallets, and PayPal, under one channel[6]).
This makes it easier for merchants to manage their transactions and access financial services. FtCash also provides loans to merchants based on their transaction data, which helps in improving their cash flow[7]).
The company’s merchant partnerships are focused on empowering small businesses and micro-merchants, who are often underserved by traditional financial institutions[7]).
FtCash has formed technology alliances to enhance its services. For example, the company uses its proprietary algorithm to assess the credit-worthiness of merchants. This algorithm includes psychometric analysis and other data points to provide accurate assessments[7]).
The company is also leveraging artificial intelligence and machine learning to improve its risk assessment and loan disbursal processes. This technology-driven approach helps in making the lending process more efficient and less risky[7]).
FtCash’s technology alliances, including its incubation by PayPal and partnership with MasterCard, have been crucial in its growth and innovation[7]).
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