Fable Fintech in talks with foreign banks to raise Rs 100 crore in FY23
Cross-border payments solutions provider Fable Fintech on Tuesday said it is in talks with a group of foreign banks for equity injection of Rs 100 crore in the current financial year.
The banking infrastructure company, which enables cross-border payments faster, cheaper and interoperable, is said to be in talks with more than six foreign banks to raise capital.
Without disclosing their names, Fable said it is in advanced talks with these potential investors to raise nearly $100 million worth of funding.
It has also appointed an investment banker from Europe to manage the fundraising plan, with the transaction expected to close within the next two quarters.
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“We are looking at raising funds for long-term growth. The company is sufficiently funded right now to meet its funding needs for 12-18 months,” said Naushad Contractor, founder and CEO of the company.
He said the company also intends to expand its global footprint after opening offices in Singapore, the US, the UAE and London in 2021.
In its previous round of funding last year, Fable had raised around $5 million from some marquee investors, including ICICI Bank, Paytm, Muthoot Fincorp and equity investor Ashish Kacholia, among others.
“The Middle East and North America regions offer a huge untapped market for the company. Banks are looking to modernize and manage their transaction pipelines across borders to compete with the fintech onslaught,” Naushad said.
The Mumbai-headquartered company offers plug-and-play technology catering to the entire Banking, Financial Services and Insurance (BFSI) sector.
The company said it has over 40 implementations in 12 countries. Fable has executed transactions in more than 35 sending-heavy countries and over 65 receiving-heavy corridors since its inception in 2015. It has a team of 270 members.
Claiming to be a preferred technology partner for cross-border payments technology for nine of India’s top 10 private sector banks, Fable said it has demonstrated expertise in making cross-border technology platforms configurable, accessible, affordable and actionable in a short period of time for the partner banks. with full-scale compliance and security package built-in.
To date, the company’s technology platforms have enabled banks to process over $15 billion in transactions, it said.
“We have only scratched the surface when it comes to unlocking the potential of cross-border payments. The estimated opportunity in small to medium value cross-border transactions is tens of trillions of dollars and growing daily with banks and non-banks requiring flexibility, efficiency and ready to implement platforms , rather than custom-made products,” Naushad said
