Saurabh Gupta | 12 Dec, 2017
Since currency fluctuations have an adverse impact on business profits, this is high time for Indian Small and Medium Enterprises (SMEs) and business community to go for more innovative and trusted Forex Company, which offers Foreign Exchange products and services, in coming times, the Founder & CEO of Myforexeye, Anand Tandon told SME Times in an interview.
He said, "Well informed hedging decisions will certainly help the business to groom especially in case of an SME or MSME where the profit margins are lower as compared to large firms. Forex exchange should certainly be a part of the business and revenue generation strategies for a longer run. It is time for SME sector to witness more and more innovative foreign exchange products and services to propel the growth of Indian businesses on global platform."
Excerpts of the interview...
Please tell our readers something about your group - Myforexeye.
Anand Tandon: Within my market experience, I realised that when the entire asset classes namely Debt, Equities, and Commodities had numerous players and transparent ecosystem, FX remained a highly closely held and regulated market with dearth of knowledge. On the contrary, FX as a market risk is audience agnostic. It's amongst the biggest risk which affects the entire spectrum of market participants. From billion dollar defence payments to carrying currency for your first international travel, it affects the commercials of transactions significantly. Since the industry was yearning for innovative, fast, transparent and seamless transactions in Forex exchange, I took the plunge and started Myforexeye.
Myforexeye was conceptualised to provide one stop shop for all needs emerging out of the highly complex and opaque FX markets ecosystem in the country & targeted towards both B2B and B2C clientele. Founded in 2014, we are India’s first full service Forex Company offering Foreign Exchange products and services with the mission of simplifying Forex for everybody.
Aimed solely at increasing profitability of a business, we curated services which have never been experienced or exercised in the Indian market. The services are quite affordable when compared to bank charges. It achieves cost optimization by offering various other services required by Indian exporters & importers alike.
For TPO business we are the innovators and disruptors. During our initial two years of operations we marketed the idea of Transaction Process Outsourcing (TPO) to 5000+ clients. We successfully convinced more than 500 clients across the country to outsource forex rate booking process to a team of seasoned dealers at Myforexeye. And today we stand taller after having processed 50,000+ forex transactions worth USD 2.1 billion from 50+ banks.
Tell us about the Foreign Exchange product and services you offer in India. Do you have something for SMEs too?
Anand Tandon: Myforexeye has curated avant-garde FX solution streams for specific needs of diverse client segments. Right from intermediating between banks and SME clients for FX rate negotiations & price discovery to trade finance, from providing customised risk management advisory to providing FFMC product to retail clients, Myforexeye offers it all.
Importantly, the product suite has a huge potential and scope for a wide array of innovative products and we are in process of building new avenues and capabilities for the same. Our vision is to make Myforexeye synonymous to FX in India and across the globe.
Our services are quite affordable when compared to bank charges. It achieves cost optimization by offering various other services required by Indian exporters & importers alike:
RateAudit - RateAudit allows subscribers to check Forex margins/spreads on 3 past transactions done with their banks. It is the first step in the right direction for users to verify revenue pilferage from foreign exchange transactions. Guests can check rates for Cash/Spot/Forward/EEFC Conversion and Export Bill Discounting transactions using RateAudit function.
RateCheck - This service allows 'paid' users to check rates in real-time while transacting with their banks. The tool in Myforexeye Application allows users to check rates for nearly all transactions done by clients in India - Including Cash/Spot/Forward/EEFC Conversion and Export Bill discounting transactions.
Transaction Process Outsourcing (TPO) -Hiring a Treasury manager is an expensive proposition for SME clients as the cost is high and transactions are small in number. Myforexeye enables B2B clients to outsource complete rate booking activity with their banks to Myforexeye to ensure zero pilferage in terms of rates offered by their banks. In turn, clients get complete information on their transactions including - Voice recordings of Myforexeye discussion with their bank, exact time of transaction, corresponding charts etc. Myforexeye is looking to grow the clientele from 300 today to 5,000 in the next 2 years.
Money Changing business - Myforexeye is a full-fledged money changer licensed by RBI and offers its services to clients in Delhi NCR region. Users can buy/sell foreign exchange online through the Myforexeye portal. The service will be launched in 65 cities in India by 2021.
Transactional Forex Risk Advisory - The team believes each client requires professional assistance to manage high volatility in Forex markets. Myforexeye is disrupting the way SME clients seek advisory by moving from retainer to transaction model. A client can seek online advisory without paying monthly/annual retainer charges. The service will enable over 3 lakhs clients to seek advisory on Fundamental and Technical analysis in forex markets.
Trade Finance Intermediation - The B2B client segment goes through a tedious process of identifying reasonable bill discounting channels for multiple transactions every month. The current market dynamics are entirely offline and marred with duplication of efforts. Myforexeye has built an algorithm where users can fetch bill discounting costs from 50+ banks globally in less than 3 minutes. In effect, almost 50,000+ B2B users can be potential clients for this platform.
How do you look at the present and future of SME segment in India?
Anand Tandon: A healthy and growing SME sector is the lifeline of nation’s business environment. India has made a record jump in World Bank's ease of doing business ranking which indicates much better framework in coming time for the SME sector. The business environment has certainly improved for the SME sector in India. Thanks to a huge list of reforms, favourable policy infrastructure. Easier business environment has certainly opened a plethora of opportunities for start-ups and SMEs.
A SME business has limited tools, know-how of financial markets covering arithmetic, hedging risk etc. Their dependence on banks is very high and profit-centric banks leave no stone unturned for making use of information gaps to maximise their revenue. Myforexeye support them to cover their Forex transactions with their banks.
Since currency fluctuations have an adverse impact on business profits, this is high time for Indian business community and individuals to go for more innovative and trusted platforms to ensure better returns in coming times. Well informed hedging decisions will certainly help the business to groom especially in case of an SME or MSME where the profit margins are lower as compared to large firms. Forex exchange should certainly be a part of the business and revenue generation strategies for a longer run. It is time for SME sector to witness more and more innovative foreign exchange products and services to propel the growth of Indian businesses on global platform.
How difficult is the procedure of Foreign Exchange here in India?
Anand Tandon: Forex is one area where money vanishes in air without writing a cheque. A simple mark-up of 20 paisa on export process of $400,000 makes you poorer by Rs.80, 000 without separately debiting your bank account.
India is one of the largest markets in the world but even then individuals as well as business communities are relatively unfamiliar with this segment. For majority of us Foreign exchange seems to be a complicated process with a lot of fear involved considering low awareness level and the perception of complexity involved. Various asset classes like debt, equities and commodities have numerous players and a transparent ecosystem, but FX still remains a closed market in India and other global markets despite the need for information and help among those who require FX services.
Forex industry in India was craving for a platform that can make life easier by simplifying Forex for everybody. Unfortunately this promising segment was even ignored by India’s start-up revolution till the inception of Myforexeye. There were a large number of people who needed FX services, but had to contend with what the banks offered. Taking up the challenge to simplify Forex in India we established Myforexeye.
The company offers very elementary though innovative solutions around the way foreign exchange is transacted. The product and processes are designed in such a way that clients are ensured utmost transparency. The company’s strength lies in its unconventional approach towards problem solving to offer unmatched efficiency and effectiveness. Myforexeye seeks its success in their client’s success with utmost attention to providing the best possible services.
How is Myforexeye simplifying Forex for different users?
Anand Tandon: We established Myforexeye with the prime mission of simplifying Forex for SMBs, SMEs, MSMEs, B2B and B2C businesses. We have put our energy and experience in building this unique concept and have been getting exciting response from the industry. The company is working towards simplifying Forex for all users. While doing so, Myforexeye is going to disrupt an INR 60,000 crore windfall made by intermediaries by means of information arbitrage.
Recently we have raised pre-Series A funding of USD 2.2 Lac approximately INR 140 Lacs from a clutch of individual investors. The company is utilizing this investment in creating new technology avenues and marketing platforms to reach out to its clients in an efficient manner.
Myforexeye aspires to be the leading one-stop shop foreign exchange solution provider across the globe. The company’s strength lies in its unconventional approach towards problem solving so as to offer unmatched efficiency and effectiveness.
How do you see the online foreign exchange industry? What is the size of the online foreign exchange industry and the opportunities in the segment?
Anand Tandon: Forex is the biggest and the fastest growing market in the world economy. With the advent of the online forex market place, Business communities as well as individuals have plethora of foriegn exchange options to buy it at the best available price without visiting multiple money changers or banks.
Still Online Foreign exchange (FX) is one area that has largely remained untouched by the start-up revolution. We decided to tap the potential that a relatively uncluttered foreign exchange market provided. Since the industry was yearning for innovative, fast, transparent and seamless transactions in forex exchange, we took the plunge and started Myforexeye.
Online Market places allow individuals and business communities to buy and sell foreign currency by offering best rates, seamless transactions and utmost transparency. Myforexeye is India’s first full-service forex fintech company providing foreign exchange products and services that cater to the needs of both businesses, particularly SMEs, as well as retail customers.
Myforexeye is disrupting the way SME clients seek advisory by moving from retainer to transaction model. A client can seek online advisory without paying monthly/annual retainer charges. The current market dynamics is completely offline and marred with duplication of efforts. Myforexeye has built an algorithm where users can fetch bill discounting costs from 50+ banks globally in less than 3 minutes. Users can buy/sell foreign exchange, buy multi currency prepaid forex cards which is available in 16 currencies and transfer money online through Myforexeye portal. Forex currency notes are available in almost 40 traded currencies. Our portal enables B2B clients to outsource complete rate booking activity with their banks to Myforexeye to ensure zero pilferage in terms of rates offered by their banks.
The industry potential is huge with 1 million Small & Medium Enterprises and 20 million individual customers using banking services to transact in foreign exchange market. Better profit margins of clients from both B2B and B2C segment is under risk due to information arbitrage by intermediaries, lack of transparency and reliable platforms.
What are your expectations from the mobile application, which you had launched recently?
Anand Tandon: From traders to business communities to individual’s mobile phone and smart devices are quick, safe and reliable platforms for operations and transactions in today’s digital world. We have recently launched India’s first complete Forex Exchange Mobile App to offer enhanced user experience, transparent market operations and complete audit trail for B2B and B2C segments.
We are currently offering a the widest range of features such as buy/sell Forex online, Transaction Process Outsourcing (TPO), Transaction Forex Risk Management, International Trade Finance, RateAudit and RateCheck. We uniquely bill our clients out of their savings. Through this unique technology enabled platform, we also connect our clients to the bets of the experienced dealers to get things done. To ensure the data safety we are using the world class security technology with the highest of the standards. Our App is a complete FX ecosystem offering Alerts, Real-time Rate Check, Single click dealer connect, Research, Transparency, Time bound activity, Rate Audit and a plethora of other services.
What are your expansion plans of the company?
Anand Tandon: The business evolved pretty well over last three years with the feet-on-street team meeting almost 5000 clients and serviced more than 1000 clients so far. Currently we operate out of Delhi, Pune and Tirupur. We have plans to roll out 15 multi product branches at Mumbai, Gurgaon, Hyderabad, Chennai, Bangalore, Kolkata, Ahmedabad, Vizag, Ludhiana, Jaipur, Cochin, Indore, Chandigarh, Surat, Gandidham and Raipur by March 2018. We are increasing our current tech team to three times and planning to commensurate Human capital build up.
We intend to service more than 1,00,000 SME customers in India by 2025. We are having aspirations to take this brand across the global markets in near future.