Bengaluru based BuyForexOnline, a pioneer in the online Forex space operating an e-commerce portal to provide a seamless end-to-end platform for travelers to transact their forex requirements, is in talks with a few Indian and global investors and VC funds to secure a pre-Series-A funding of around $2 million and expects to close the investment in the next few months. BuyForexOnline is a multi channel new age fintech venture operating in the forex and remittance space and authorized by the RBI.
The company has raised $1 million from private investors till date and has achieved traction of over $30 million, servicing over 20,000 clients since its inception, with a projected 5X growth this fiscal as a result of the implementation of multiple new initiatives and going mobile- from where a majority of hits to the site originates.
“We are looking more for pure financial investors at this stage rather than strategic investors from whom we are seeing interest”, said Ananth Reddy, Founder and Managing Director of BuyForexOnline.” The company is now very close to profitability and having consolidated its operations will embark on the next phase of growth with various customer centric initiatives”.
The primary forex product of BuyForexOnline is an advanced multi-currency Prepaid forex card, which enables reloads on the go, contributing to an over 60% client retention rate. Observed average transaction values are about $1500, attesting to their high-quality client base. Especially relevant in a post-Demonetization era, BuyForexOnline.com is in line with the gov't objective of digitization, and eliminating the black-market - which is highly prevalent in the forex space; 100% of payments are to account and KYC compliant - which is a clear disruptor in this space.
The next phase of growth will see adoption of newer technologies like e-kyc, and establishment of a Hyper-local delivery network, which are other pain-points in the industry. To date, all of BuyForexOnline’s business is conducted on upfront payment and robust cash-flows. Also, unlike most e-commerce models, positive unit economics is sacrosanct ensuring a clear path to profitability, in the midst of an industry, which has generally followed an unviable deep discounting business model.