Mumbai based B2B cross border payment processing startup, Fable Fintech on Wednesday (June 2) announced it has raised an undisclosed amount in Series A funding round. The round was led by India based investors including venture capital fund Pentathlon Ventures, stock market investors Ashish Kacholia & Lashit Sanghvi and former Wall Street banker Sumeet Kanwar along with participation by existing investors Paytm and Infibeam Avenues.
Apart from Paytm and Infibeam Avenues, current shareholders in Fable include ICICI Bank, Secocha Ventures, Parekh Family of Pidilite Industries and Muthoot Fincorp.
The company added that these fresh funds are mainly intended towards the expansion of the company’s product footprint across Asia, North America, the Middle East & African markets. It will also continue to invest in new products to enrich its portfolio and expand its execution capabilities.
“We are elated to onboard marquee investors and look forward to their insights in enriching and realizing our vision. In the last three years, we have built an ecosystem for unlocking the latent fintech potential in banks, financial institutions and businesses to move money worldwide in a secure, transparent, reliable and efficient manner with zero compromise on global compliance, AML(Anti-Money Laundering) and KYC(Know Your Customer) norms. Our platforms are ready for global deployment now,” said Naushad Contractor, CEO of Fable Fintech.
Started by Naushad Contractor, Fable Fintech provides a cross border money transfer & payment technology platform to banks, money transfer operators, MSBs (Money Service Businesses) and other licensed entities to either launch their digital remittance business in a greenfield manner or to enhance their offerings in international markets.
It caters to 20 banks, currency exchange companies, and MSBs across 8 countries. This includes 9 out of 10 large private sector banks in India such as HDFC Bank, ICICI Bank, IDFC First Bank, and Canara Bank. Fable Fintech also caters to clients in Kuwait, Bahrain, Qatar, UK, Singapore, Bangladesh & UAE and will soon be entering the markets in Africa, Sri Lanka and Nepal. Fable has a team of 200 resources in India, with key personnel based in the USA & Singapore. With this round of funding and a strong B2B business model, the company said, Fable is on its way to a market leadership position in the market of cross border payment platforms globally. So far, has processed around 8 mn transactions aggregating to an estimated USD 16 bn. The company claims to offer bank-grade security, compliance and technology compatibility to facilitate faster go-to-market.
India is the highest receiver of remittances globally; last year that figure was $83 Bn. As per McKinsey’s 2020 Global Payments report, Covid -19 has led to the reduction of cash and the increase of digital payments both domestic and cross border. COVID-19’s impact on the top and bottom lines of bank P&Ls and the need to continue investing in technology to offer a compelling value proposition require banks to determine the strategic role and their level of ambition in payments. The SME segment will likely be the driver of this growth.