Myforexeye: Saving money on foreign exchange transactions

By: |
October 04, 2021 2:00 AM

This fintech enables MSMEs to check the real-time forex rates and transact from their mobile phones with full information on bank commissions and charges

Myforexeye Fintech founders Anand Tandon (centre) flanked by Ritesh Victor (left) and Priyetu Shekhar (right)Myforexeye Fintech founders Anand Tandon (centre) flanked by Ritesh Victor (left) and Priyetu Shekhar (right)

Alps Industries has been exporting textile products for some time, with its banks taking care of foreign exchange transactions. But it was only after hiring Myforexeye, a fintech startup, it realised that it was losing money on every transaction. “We got to know that our bank was charging very abnormal rates – sometimes card rate and sometimes 30-40 paise variation from the card rate. Myforexeye started negotiating with the bank directly for the best rate possible and informed us of the transaction immediately. We have saved 0.25-0.5% by dealing through them. In addition to this saving, they are advising us on hedging the currency risk which is helping us save even more,” says KK Agarwal, chairman, Alps Industries.

Basmati rice exporter KRBL, which has brands such as India Gate and Nur Jahan in its stable, seconds this. Says Anil Mittal, chairman & managing director, KRBL: “We have large dollar-designated exports and therefore managing forex risk is critical for our overall business profitability. We have collaborated with Myforexeye for forex market intelligence and insights to take prudent and informed decisions.”

For MSMEs, especially export houses, forex rates are a deal clincher. Then there are costs like conversion commissions, document handling costs and remittance charges, handling which may not be an MSME’s strong point. This is where Myforexeye, a fintech, comes in. “We limit MSMEs’ losses on forex dealings as well as facilitate quick settlement of export invoices on a post-shipment basis, which gives them immediate working capital to tend to the next export order. These services are available through our mobile app called ‘Myforexeye’,” explains Anand Tandon, founder and CEO, MyforexeyeFintech.

Real-time and accurate forex data is critical for providing 100% transparency. For this, it sources forex rates from the same data providers that power global information portals like Reuters terminals, only at an economical price. The data terminals are linked with the application backend to enable easy access to clients. The client can view the rates for each day in next 12 months, and can transact as per requirements. In case these rates are not honoured by banks, subscribers can take help of Myforexeye’s forex dealers who help them negotiate in real-time. Users can also access India-centric forex research and reports in real-time. The forex traders can subscribe to signals for trading in currency markets for generating returns.

“Myforexeye helps clients understand various costs like conversion commissions, document handling costs and remittance charges. These are lower than what the client would have to pay to the bank if they deal without our involvement,” he says. “The tech interface makes the transaction free of human intervention and delivers maximum value to the client.”

The fintech earns through mobile app subscription and consulting services, wherein it suggests how to hedge the currency risk, utilise government’s interest subvention scheme, discount receivables, etc. It currently has 10,000 subscribers and aims to have 1 lakh subscribers by March 2022. It is going for strategic tie-ups with Federation of Indian Export Organisations to support its members in saving money on forex transactions. “The subscription model gives us the opportunity to expand our fee-based consulting business as well. At present, we are earning 30% of revenue from app subscription while the rest comes from consulting. Our plan is to inverse this ratio in favour of app subscription services,” says Tandon.

The company was founded by Tandon in 2014. Ritesh Victor joined as a co-founder in 2015 while Priyetu Shekhar came in as an investor and co-founder in 2018. Myforexeye has raised `3.4 crore from individuals and institutional investors including Rahul Dev Kumar, Priyetu Shekhar and InRhythm Energy between 2017 and 2018.

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