Fable Fintech Limited, India’s leading global banking infrastructure company, is in discussion with top foreign banks to raise around Rs 100 crore in the current fiscal. The company is in advanced discussion with potential investors to raise funds at a valuation of nearly $100 million. The company has already appointed an investment banker from Europe to run the exercise. The transaction is expected to close in the next two quarters.
“We are looking at raising funds for long-term growth. The company is sufficiently funded right now to meet its funding requirement for 12- 18 months. The company is looking at raising funds to meet long-term growth trajectory and expansion in the global market,” said Naushad Contractor, Founder & CEO of the company.
In the last round of funding in 2021, the company raised around $5 million from some leading marquee investors, including ICICI Bank, Paytm, Muthoot Fincorp, and prominent stock investor Ashish Kacholia, among others.
In 2021, the company also set its sights on expanding its global footprint – by opening offices in Singapore, USA, UAE, and London. “The Middle East and North American regions offer a huge untapped market for us, with the banks wanting to modernize and manage their cross-border transaction pipelines to compete with the fintech onslaught,” said Naushad, “They want to win back their lost lunch, and Fable arms them to do that,” he added.
Mumbai’s headquartered company is a cross-border global banking infrastructure player, a plug-and-play technology company catering to the entire spectrum of the BFSI sector. With its 270-member team, Fable has 40+ implementations in 12 countries and has executed transactions across 35+ send-heavy countries and 65+ receive-heavy corridors since its inception.
The company has been a preferred cross-border payments technology partner to nine of India’s top 10 private-sector banks. Fable has demonstrated expertise in making cross-border technology platforms configurable, accessible, affordable, and actionable in a short time for its partner banks, with full-scale compliance and security suite built in. To date, the company’s technology platforms have enabled banks to process upwards of $15 billion in transactions – establishing it among the fastest-growing players globally.
“We have only scratched the surface when it comes to unlocking the potential in the cross-border payments space”, said Naushad. “The estimated opportunity in the small to medium value cross-border transactions is tens of trillions of dollars and growing daily with banks and non-banks demanding flexibility, efficiency, and ready-to-implement platforms, instead of made-to-order products,” he added.
Traditionally, cross-border transactions were anchored by the banks in outward remittance economies – called smart pipes. The banks in the recipient economies, mainly the developing and under-developed ones, were traditionally referred to as dumb pipes – meaning they could not initiate or earn from cross-border payment transactions.
The implementation process was considered time-consuming, expensive, and, in most cases, played up with core banking systems. “The opportunity was in creating a full-stack, omnichannel and cloud-ready platform that would interact with everyone and ensure minimal changes to the core banking systems,” added Naushad.
