by Founder Tells Investors the Companys Business Model Is to Replicate the Asymmetric Rate Passthrough at Scale, Investors Reportedly Cried
Reading: Bohiney | The London Prat
BENGALURU — A small fintech startup operating from a co-working space on Indiranagar 100 Feet Road raised a Series B funding round of $34 million on Tuesday, citing as its central competitive advantage the systematic replication of the British high-street banking sector asymmetric rate passthrough at scale across the Indian retail-deposit market.
The Pitch
Founder Karan Mehta, 31, told the assembled investors that the company core operational thesis was to charge fees at the operational speed of the British MPC quarter-point rises and to pay savings interest at the operational speed of the British high-street banks corresponding savings-rate adjustments. The investors, several of whom had read the recent Bank of England statement in advance of the meeting, reportedly began crying.
The Outcome
The Series B closed at $34 million on a $180 million pre-money valuation. The startup has indicated it will, in operational terms, begin operating in approximately ninety days. Indian regulators have indicated they will be watching. The Bank of England has indicated that the Indian situation is not, in any operational sense, within its remit.
The Indian Express has covered the broader question.
Pairs well with: The Daily Mash
SOURCE: https://prat.uk/bank-of-england-raises-rates-again-to-punish-anyone-who-enjoyed-a-sandwich/
