Neokred - B2B startup introducing 'Bank in a Box' concept
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Neokred’s NeoBox is aimed to be the one-stop platform to service any fintech use cases, whether it can be facilitating BNPL to your end-users, credit cards to your employees, virtual bank accounts for salary disbursement, and even having your own POS terminal. All in your brand name with Neokred being the powering entity.
StartupTalky interviewed Mr. Tarun Nazare (Co-founder & CEO, Neokred) to get insights on the startup story of Neokred and its roadmap ahead. In this article, you'll discover how Neokred started, its product offering, funding details, growth and more.
Neokred - Company Highlights
| Startup Name | Neokred |
|---|---|
| Founders | Tarun Nazare (CEO), Rohith Reji (CBO) |
| Headquarters | Bangalore |
| Industry | Fintech |
| Website | neokred.tech |
Neokred - About
Neokred - Industry Details
Neokred - Idea & Inspiration
Neokred - Product/Services
Neokred - Founders and Team
Neokred - Name Meaning & Logo
Neokred - Launch and Marketing Strategies
Neokred - Challenges Faced
Neokred - Current Stats & Growth
Neokred - Funding and Investors
Neokred - Awards & Recognition
Neokred - FAQs
Neokred - About
Neokred has created a ‘NeoBox’ signifying ‘Bank in a Box’ concept which facilitates curated cards, bank accounts, and merchant acquiring. Companies who want to provide financial services in a curated format to their users can use this box in a plug-and-play model.
Neokred’s NeoBox is an aggregation channel that facilitates financial services as a platform plugin in their respective mobile application or ERPs. There are various use cases that are serviceable to the respective market which eases the way of banking and availing financial products. NeoBox can be plugged into all sectors and service any industry type. Currently, services such as prepaid cards are being serviced. In the next few months, the startup is entering into Bank Accounts and Merchant Acquiring space with innovative plugin fintech products.
"Any company can become a Fintech with our NeoBox Solution. Corporates or Fintechs with existing or new user base and plugin financial services in their own mobile app for their customers. Open Banking is our core belief and we are excited to be in this space at the right time with the right bank partners who think out of the box in innovative new product designs" -says Tarun Nazare, Co-founder & CEO, Neokred
Neokred - Industry Details
Any industry can be serviced with Neokred's NeoBox. For example, Ola scooter getting a vehicle financing option for its customers, Dunzo facilitating Vehicle loans for delivery partners wanting to buy a vehicle, Swiggy introducing Order now pay later, Expense and Incentive cards for supply chain companies, and etc.
As a B2B company, the market is largely underpenetrated due to the traditional mechanism of payments which makes it interesting to us to be in this space at the right time. The market size of an Open Banking market will touch 43,150 million by 2026 (in the next 5 years), registering a CAGR of 24.4% [Source Allied Market Research]
In the next 5 years, every company will avail fintech products to their large user base. Innovative fintech companies specializing in each aspect of the banking vertical will be focused upon.
Neokred - Idea & Inspiration
Tarun & Rohith were working in the B2B and B2C payments space with Top tier banks to understand compliance, issuance, acquiring roadblocks, and regulatory issues faced by a company that wants to launch a fintech product and service a particular niche in the market. During their tenure, they noticed that the duration of an idea to go live is between 7-12 months and this wait is what is being bridged by Neokred. The days of waiting to launch a product for 7-12 months goes away with Neokred’s NeoBox, companies can now launch their fintech products within 30 days.
The founders had experienced it themselves while launching their first product in the prepaid card which took about 7 months and had researched and studied other company experiences who were associated with their respective partner bank on availing any fintech product. The market in offering many such fintech products is still underpenetrated even after a decade in the digital economy.
While creating the NeoBox, the team spoke to large corporates, SMEs, and Startups to understand the duration and roadblocks they have faced while consulting with a financial institution. Many companies faced the problem of hiring the right technology team for building and integrating the APIs they were given, designing the product with the banking partner which achieves product-market fit for that respective market, and tweaking a service to address a query in a better manner, most of the companies wanted a ready platform and not in an API format to start servicing the user.
Anik Banerjee
Neokred - Product/Services
Neokred’s NeoBox is a platform built to plug and play into any existing ERPs, the SDK journeys are curated as per client expectation and plugged into their respective mobile app for faster GTM. SDKs are in multiple programming languages suited to be integrated seamlessly.
The platform can service use cases such as prepaid card, credit card with loan management system and risk underwriting, create bank accounts such as salary account, savings accounts and current account with add on features such as Investments, Insurance, fixed deposits and recurring deposits at the moment. The startup has plans to integrate third-party company APIs on the SDK journey that specialize in their own banking vertical such as KYC, Cyber security, AML checks, cust ID generation, and few core banking platforms.
Neokred’s NeoBox is aimed to be the one-stop platform to service any fintech use cases, whether it can be facilitating BNPL to your end-users, credit cards to your employees, virtual bank accounts for salary disbursement, and even having your own POS terminal. All in your brand name with Neokred being the powering entity.
Neokred - Founders and Team
Tarun Nazare and Rohith Reji are the founders of Neokred.
They were working in their previous firm as a Finance Manager and VP of sales respectively with Tarun having to work with B2B and B2C payments company and Rohith who had his own startup in the middle east.
Tarun Nazare | Co-Founder & CEO/CPO, Neokred
Tarun is a Visionary who handles the Tech and Product in Neokred. Innovating with Payments tech is his hobby as well. He has Certified in Data Science from IIM-K and Certified Product Management from Duke University. Tarun brings around 6 years experience in the payments domain.
Rohith Reji | Co-Founder & CBO, Neokred
Rohith is a StoryTeller and handles the Business and Strategy in Neokred. Apart from Neokred, he has been the Organizer Head @ TedX and also co-founded a startup named, Onvo.
Team & Work Culture
- Team size - 35
- Work Culture - Startup innovation arena, co-creating innovative products, products built for companies are given free to Neokred employees – Credit card (0% interest), BNPL (0% interest), Insurance (up to 10L) and many more.
- Hiring funda - People who can think out of the box, problem solvers, designing thinking, and market thinking validators are welcomed.
Neokred - Name Meaning & Logo
Neo = New/Digital & Kred = Credibility, hence, Neokred. The founders believe that it is very important to have digital trust in the digital economy as money matters are very sensitive matters.
Neokred - Launch and Marketing Strategies
Understanding client requirements in depth which can be replicated to everyone in that industry is what the team at Neokred focuses extensively on. When they get this right, offering to players in a similar market with all the use cases and problems being addressed is a calculated pitch.
The startup has been very selective with banking partner tie-ups. For it, if a bank is innovative in nature and is ready to play a product in an open manner, it is the right partner for the company. Banks with legacy systems are least preferred by Neokred and its clients as well.
The founders have been building in public and taking part in seminars and conferences, this has allowed businesses to recognize Neokred better as a brand which has led to increased sales. As a B2B company, the marketing budget is mostly spent on professional platforms and users are captured in an indirect manner through the clients.
Mahenoor Mansuri
Neokred - Challenges Faced
Making Neokred’s NeoBox a pure plugin platform was the hard part which took the compliance, risk monitoring and management, client and bank expectation of a program. The founders had fruitful discussions with their partner's product team and they were willing to experiment with the APIs provided.
One such experiment was co-creating contactless wearables for people who love to go for a jog and not wanting to carry their mobile phone or card. With this contactless launch, Neokred now has 50,000 joggers using it as a key chain.
Neokred - Current Stats & Growth
- Head office - Bangalore, India
- GTV - More than INR 200cr
- Clients - 25+
- Bank Partners - Yes Bank, Equitas SFB
- Monthly Growth - 50%
Neokred - Funding and Investors
Neokred has raised total funding of $1.2 Million as of 2021. The funding details of Neokred is as follows -
| Date | Stage | Amount | Investors |
|---|---|---|---|
| 3rd July 2020 | Pre-Seed Round | $100K | Hariharansudhan |
| 6th September 2021 | Seed Round | $ 1.2 Million | Virenxia, Rajesh Jain, Nitin Agarwal |
Jeenal Jain
Neokred - Awards & Recognition
- Young Entrepreneur India from Entrepreneur India
- Innovative startup of the year from Revopreneur
- 30 startups to watch – Inc42
Neokred - FAQs
What is Neokred?
Neokred has created a ‘NeoBox’ signifying ‘Bank in a Box’ concept which facilitates curated cards, bank accounts, and merchant acquiring. Companies who want to provide financial services in a curated format to their users can use this box in a plug-and-play model.
Who founded Neokred?
Tarun Nazare and Rohith Reji are the founders of Neokred.
How much funding has Neokred raised?
Neokred has raised total funding of $1.2 Million as of 2021.
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