UAE-based Fxkart.com FZ LLC, which runs an India-focused online property for foreign currency exchange under Fxkart and also operates a research unit in Bangalore, has raised $1 million (Rs 6.27 crore) in seed funding from Faraz Naqvi, according to a press statement.
US-based Naqvi is a partner at QM Ventures, a private investment group focusing on investments in healthcare, technology and infrastructure. The investment is in his personal capacity.
Simultaneously, Fxkart founder Mushtaq Shah has also brought in $1 million to bankroll investment plans. The funds will be used to expand the dealer network of the company in India and enhance the IT infrastructure.
Founded by Shah (previously, head of research for Equinox Capital Management and executive director at Goldman Sachs International) and Abdul Hadi Shaikh (head of research at Ratings Intelligence, a Shariah-compliant investment advisory firm, based in London with offices in Bangalore and Kuwait), Fxkart.com is an online aggregator of foreign exchange dealers. A user can choose a forex dealer based on the location, option of delivery provided and the most suitable rate.
It has also launched a mobile app, showcasing over 500 dealer locations/branches across the country, with geo-location, instant chat and deal tracking. It is currently available on Android platform and will be live on iOS by mid-April.
UK-based co-founder Shah is also the co-founding partner of hedge fund Quantmetrics Capital Management.
“Within a few weeks after starting operations we have achieved an online transaction volume of more than Rs 3 crore with more than 25 pan-India dealers, 500 branches and more than 500 happy customers,” said Shaikh, co-founder and CEO, Fxkart.
In the six months, it aims to achieve an online transaction volume of more than Rs 35 crore with more than 100 pan-India dealers, connecting 2,000 dealer branches to 6,000 customers.
There are a bunch of third-party players which are offering online forex services besides several banks and forex dealers like Thomas Cook. Players in the space also include BookMyForex and Buyforexonline, a venture associated with financial services firm Centrum Capital.
(Edited by Joby Puthuparampil Johnson)