The company said the service announced last week is an extension of the existing multi-currency banking facility and will help reduce export costs by up to 8%. Traders get local account details in the US, UK and Europe, which means buyers only need to make a local transfer to the exporter’s account.
“We are extremely excited to launch overseas collection accounts for businesses,” said Swastik Nigam, Founder and CEO of Winvesta.
“Many Indian companies get a raw deal. Collections are expensive, delayed and opaque. A lot of that money never reached Indian shores. With this launch, we are changing that,” he said.
India’s cross-border flows amount to more than $800 billion a year, says financial expert, and his company wants to make it easier for micro, small and medium-sized enterprises (MSMEs) to bring more of it home of their income abroad.
Under this system, companies receive virtual accounts in more than 30 currencies, including USD, GBP and EUR. The accounts serve as collection accounts for service exporters to receive payments, which are then converted into INR and deposited into their Indian bank accounts on the same day. Winvesta claims to support payment collections in more than 180 countries.
According to the neobank, the share of exporting small and medium enterprises (SMEs) in India’s total exports has grown rapidly and now accounts for almost 50% of total exports.
This includes both services and goods exports. Improved logistics and easy e-commerce platforms have helped Indian businesses expand rapidly globally. At the same time, borderless marketing tools and collaborative platforms have driven a boom in service industry digital exports, the company said.
“Unfortunately, cross-border collections have lagged behind the rapid growth of exports from the SME segment,” said Prateek Jain, President of Winvesta.
“Winvesta’s mission is to make cross-border finance easy for everyone, whether it’s an individual looking to invest overseas or an exporter looking to get paid by a foreign buyer. ‘India crosses the $400 billion export mark for the first time in a financial year, this not only marked a key milestone, but also helped us realize the potential of such an offer at this stage “, did he declare.
Winvesta said its collection accounts have a one-time refundable setup fee of Rs 499, with no monthly fees. There are also no fees for collecting money from accounts or withdrawing funds at an Indian bank. Foreign funds are converted into INR at a “very low spread” of 1.50% over interbank rates and with large volumes these rates could fall further.
Founded by former Deutsche Bank veterans Swastik Nigam and Prateek Jain, Winvesta was established as a platform offering global financial products to Indian residents and businesses.