On Wednesday, he announced Zolve, a neobanking platform for individuals moving from India to the US (or the other way around).
The startup works with banks in the US and India to provide consumers with access to financial products without paying any premium or incurring a security deposit.
In an interview with ClearTips, Raghunandan said the startup mitigates risks, which have enabled banks abroad to expand their services to enable customers. “Consumers can open an account with us and access all banking services as if they are banking with their national bank,” he said.
As part of the announcement, Raghunandan said that the two-month-old Zolve has raised $ 15 million in a seed financing round led by Axel and Lightspeed. Blum Ventures and several high-profile angel investors, including Kunal Shah (founder of Credit), Ashish Gupta (formerly MD of Helion), Greg Kidd (known for his investments in Twitter and Ripple), Rahul Mehta (of DST Global Managing Partner)) and Rahul Kishore (Senior Managing Director of Kotyu Capital) also participated in the round. So is the Founder Collective (which has supported Airtable and Uber), what is its first investment in an Indian startup.
Bezol Somia, Lightspeed India Partners, said in a statement, “Individuals with financial identity across multiple geographies need seamless global financial solutions and we believe that the team’s strong identification with the problem provides them with compelling and innovative financial experiences Will enable. “
Raghunandan admitted that some other startups are also trying to solve this challenge, but added that other firms are not using consumer’s credit history from their native nation. “We are the only one who is looking at this problem in a completely different light. We are not trying to solve the problem in the destination country where consumers face challenges. We are looking for a solution indigenously, where consumers already have a reputation and credit history, ”he said.
Once a customer has access to credit cards and other financial services in the new nation, they can quickly broaden their local credit history, something that would otherwise take years, he said.
“The global civic community is underlined to a great extent in terms of access to financial services and we believe that there is a huge market opportunity for Zway. Raghu has a proven track record as a founder and we are happy again with him on his latest venture. The team’s passion and commitment is commendable and we are positive that Zolve will create tremendous value for this community, ”said Anand Daniel, partner at Excel.
Headquartered in San Francisco and Bangalore, Zolve also offers a range of compelling facilities for those who do not plan to visit foreign lands. For example, if you are in India, you can use Zolve to buy shares of companies listed on US exchanges. Raghunandan said that you can buy bitcoins and other cryptocurrencies from US or Europe-based exchanges.
The startup, which has already amassed over 5,000 customers, has created revenue-sharing arrangements with its banking partners. Raghunandan said that since Zolve currently ships customers in India and generates most of its revenue from banking partners in the US, it is already working on a profitable model.