SaaS-based Startup Inkle Launches Platform For Cross-border Payments

Inkle's Transfer Pricing Payments will significantly enhance the ease of doing business for thousands of VC-backed US startups with a subsidiary in India

Inkle, a chat-based CPA SaaS startup, makes intercompany cross-border payments affordable and seamless for US-India startups. Inkle's Transfer Pricing Payments will significantly enhance the ease of doing business for thousands of VC-backed US startups with a subsidiary in India, as they can now transfer funds to India within just one business day with no fees. Since its beta launch last month, Inkle Transfer Pricing Payments has enabled startups such as 91SquareFeet, Synth, and GoBillion, among others, to bring large sums to India - the product has already moved close to a million dollars in the last few weeks. Currently, Inkle only serves US startups with an Indian subsidiary, but the company plans to expand their services globally to cater to the requirements of cross-border companies everywhere.

Currently,cross-border fund transfers are pretty cumbersome to and from India. Startup founders face high USD/INR forex conversion fees. There is little information or awareness of the compliance requirements, and they don't have visibility on their intercompany transactions and money movement. Around 2%-4% of the amount can get leaked in fees and forex conversion charges.

Anand Krishna, Founder & CEO of Inkle, said, "We realised cross-border remittances between group companies for small startups is a critical but challenging function for thousands of startups in India. In most cases, the founders are confronted with extremely high forex rates, have no clue what will actually land in the destination bank account and do not know how to handle the accounting reconciliation and compliance. Inkle Transfer Pricing Payments helps US-India startups by enabling affordable, seamless and fully compliant payments. The funds (which never touch Inkle's accounts) move via the world's largest banks, and we ensure end-to-end safety and security of funds."

Affordability, transparency and regulatory compliance are key features of Inkle's Transfer Pricing Payments product that have found an immediate liking among US-India corridor startup founders. Customers will only have to pay a fixed markup of up to 0.50% on the mid-market forex rate. Besides, startups will get free Foreign Inward Remittance Advice (FIRA) for each transfer, reconciliation on the software. Also, the funds get credited to the recipient bank account without the usual numerous phone calls from their banker. This new feature is part of the broader intercompany stack Inkle is building for small cross-border multi-entity groups of companies. Customers will also get access to an intercompany ledger to log and monitor all intercompany transactions, intercompany document vault, and other intercompany compliance and accounting tools.

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