Financial services company SaveDesk has announced the acquisition of a 90% stake in Bengaluru-based fintech startup Fairexpay for an undisclosed sum. This strategic move is expected to bolster SaveDesk’s position in the cross-border remittance and fund collection market.
SaveDesk, legally known as White Matter Advisory India Pvt Ltd, will leverage Fairexpay’s technology and expertise to streamline its operations and reduce costs by 3-5%. “The acquisition is in line with SaveDesk’s broader goal to strengthen its fintech play,” the company stated.
Founded in 2020, Fairexpay provides application programming interface (API) and white-label solutions, enabling businesses to efficiently manage cross-border payments. This acquisition is expected to enhance SaveDesk’s existing services, which include foreign exchange risk management, banking cost optimization, wealth management, debt restructuring, and investment banking.
SaveDesk, founded by Bhaskar Saravana, Saurabh Jain, Kranthi Reddi, and Piuesh Daga in 2015, offers solutions for businesses to facilitate easy international money transfers. The company claims to help clients identify and manage hidden and direct banking charges, potentially boosting their bottom lines by up to 7%. As of March 2024, SaveDesk managed funds totaling $8 billion.
The acquisition comes amidst a competitive landscape where fintech startups like Razorpay and PayGlocal are vying for the Reserve Bank of India’s payment aggregator-cross border (PA-CB) license. This license will allow these companies to offer international payment services. Notably, Cashfree recently became the first Indian startup to receive the PA-CB license from the RBI. Additionally, escrow banking startup Castler has been approved by the International Financial Services Centres Authority to provide cross-border money transfer services.
The global cross-border payments market, valued at $160 billion in 2023, is projected to reach $345.42 billion by 2033, according to industry reports.
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