The acquisition will enable SaveDesk to expand its footprint in the cross-border remittance and fund collection market
SaveDesk aims to leverage Fairexpay’s technology and expertise to reduce operational costs by 3-5%
Founded in 2015, SaveDesk offers cross-border payment solutions for international money transfers
Financial services company SaveDesk has acquired a 90% stake in Bengaluru-based fintech startup Fairexpay for an undisclosed sum.
The acquisition will enable SaveDesk, which operates under the legal name White Matter Advisory India Pvt Ltd, to expand its footprint in the cross-border remittance and fund collection market, it said in a statement.
Founded in 2020, Fairexpay offers application programming interface (API) and white-label solutions enabling businesses to streamline cross-border payments.
The deal is in line with SaveDesk’s broader goal to strengthen its fintech play. Through the partnership, SaveDesk aims to leverage Fairexpay’s technology and expertise to reduce costs by 3-5%, it added.
Founded by Bhaskar Saravana, Saurabh Jain, Kranthi Reddi and Piuesh Daga in 2015, SaveDesk offers cross-border payment solutions to businesses, enabling them to send money abroad with ease.
The company also offers foreign exchange risk management, banking cost optimisation, wealth management, debt restructuring and investment banking services.
As of March 2024, SaveDesk had funds under management of $8 Bn. The Bengaluru-based startup claims that it helps its clients identify and manage hidden and direct banking charges, boosting their bottom lines by up to 7%.
The acquisition comes at a time when several fintech startups such as Razorpay and PayGlocal are rushing to secure a payment aggregator-cross border (PA-CB) licence from the Reserve Bank of India.
After procurement of the licence, these companies will be able to offer international payment services.
Earlier this month, Cashfree became the first Indian startup to get a PA-CB licence from the RBI. Escrow banking startup Castler has also received the nod from the International Financial Services Centres Authority to offer cross-border money transfer services.
According to a report, the global cross border payments market, pegged at $160 Bn in 2023, is expected to reach a size of 345.42 Bn by 2033.
