The niche start-up offers comprehensive treasury and trade finance solutions to many Indian corporates
Terms such as ‘treasury’ and ‘forex management’ do not really conjure up visions of nimble start-ups and enthusiastic entrepreneurs, but when three legacy bankers joined hands to start IBSFINtech, a young start-up with the aim to disrupt this staid but much-valued niche segment was born. Today, companies such as JSW Steel, Maruti Suzuki, Mahindra & Mahindra, Sonalika International Tractors, Sai Life Sciences, HimatsingkaSeide, Indofil Industries, Future Group have entrusted their treasury management operations to IBSFINtech.
“IBSFINtech offers a comprehensive treasury management solution and trade finance product for corporates where it helps manage foreign currency risks, commodity trading risks and optimise returns on investments. It also manages letter of credit, and bank guarantees for importers and exporters,” says CM Grover, co-founder and director, IBSFINtech.
“We take pride in being the only Indian company to offer comprehensive treasury and trade finance solutions that compete with products from global giants such as SAP Treasury, Murex, SunGard.” Grover, along with TM Manjunath and S Sethuraman, started IBSFINtech in 2013. In Oct 2017 the start-up raised undisclosed seed funding from Shailesh Haribhakti, chairman of Haribhakti & Co., one of India’s top risk advisory, auditing and tax consultancy firms.
The start-up is also in an early stage of discussions to raise funding of $2-4 million for scaling up operations globally and for product research and development. “Our aim is to expand globally and the first step is to have our set-up in the Middle-East and South-East Asia. The company has partnered Singapore-based AugementSol to market its product in Singapore and has already demonstrated the solution to 12 companies there. In the Middle East, it has reached out to five companies,” said Grover.
“The target is to onboard around 1,000 large corporate entities. We are also in talks with private sector lenders to offer our product to their small and medium enterprise clients.” According to McKinsey, the market potential of corporate treasury, B2B payments and cash flows is $135 trillion globally and $15 billion in India. With more than 6,400 companies with a turnover greater than Rs 500 crore, which are dependent on Excel sheets for treasury management, there is tremendous scope for adoption of technology in treasury management.
Considering the demand in the industry and lack of availability of end-to-end solutions, various consulting firms have already partnered with IBSFINtech for marketing the product globally as well as implementation of the product. IBSFINtech’s Innovative Treasury 5.1i and Innovative Trade Finance 5.1i are on-premise solutions with exclusive modules for currency, commodity, and money market.
IBSFINtech is also launching a cloud-based product designed for SME segment by September this year. “A multi-entity, multi-currency, multi-asset-class-enabled integrated treasury solution with extensive risk measurement capability, it facilitates rapid implementation while reducing the total cost of ownership and operating costs,” said Grover. These products integrate seamlessly with third party transactional systems (SAP, Oracle, etc.,) and also with data service providers such as Thomson Reuters. IBSFINtech has a strategic partnership with Thomson Reuters for providing the solution with access to market data APIs for real-time data feed.