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UAE-based Fxkart raises $1M from QM Ventures' partner for Indian forex marketplace

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FxkartUAE-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.

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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.

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"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.

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(Edited by Joby Puthuparampil Johnson)


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