Sending money internationally no longer needs to be a problem, after the industry has been revolutionised with Xendpay and RationalFX. We caught up with Paresh Davdra, CEO and Co-Founder of Xendpay and RationalFX, two platforms which recently have been brought to light, as he tells us about his secret to business success.
Paresh explained their growth funding path, and the transition of the beginning struggle and being rejected from banks regularly to the gradual change, after a member of the team was given a car loan, which marked the beginning of the cash flow.
“When we first started, we were a pair of 20 something’s with no money so funding was tough. We were continuously turned away from banks until Rajesh was given a £20,000 ‘car loan’ which got the ball rolling. In 2005 our industry was only regulated by HMRC for money laundering, so we just had to register with them and follow their guidelines for recording transactions. Also as our business was money transfer that took place relatively quickly, profit was also banked just as quickly and we didn’t have the complications of worrying about facilitating credit terms. It wasn’t until 2009 that the FCA started regulating our industry and we required a minimum capital adequacy but by then we were big enough to support that requirement. As we grow and the market changes we have many projects in the pipeline in terms of tech development. Because we are still an organically grown firm, many of these projects have to take a back seat whilst we complete the ones that we feel are a priority… But that’s business and it is important to continue have a balancing act.”
Focusing more on the fintech side of the business, it is evident how much of a difference technology made to the business. Paresh explains how the company’s use of API greatly impacted the company.
“Integration using API’s. We are integrated with electronic verification companies to SWIFT, to even local distributor Banks in India.This allows us to provide a straight through processing low touch solution. It brings our costs down significantly and is of course scalable.”
Paresh further commented, when asked where he believes his company will be in the next three years,
“We are currently growing at a fast pace throughout Europe. I would like to think that in three years we would have really made our mark. By this time I believe we would have also established offices in Australasia and the Far East, creating a global foot print and covering all time zones. I envisage a turnover exceeding £5bn.”
Starting up a business is one of the hardest things to do within the entire sector, and comes with risks and doubts, the leading reason as to why half of startups fail within the first year. Paresh confirms how hard it was starting from nothing, with no funds, to becoming something.
“The hardest thing must have been navigating through the recession – we were becoming increasingly successful in the three years leading up to it and then everything suddenly slowed down. In an industry like ours, the recession made a monumental difference to business but it taught Rajesh and I some valuable lessons and in turn helped the business grow stronger. The recession taught us that haphazard spending is not the way to go – we learned to be clever with money, as one can never predict what it would suddenly be needed for in the future. Businesses should always have a ‘rainy day fund’. During 2008, I matured significantly both personally and as a businessman. Saying that, it is also important to maintain a balance if you want to grow your company. Growth costs money and takes risk – so when times are tough don’t get totally risk averse, don’t forget that the tough get going.”
What was the company’s biggest business mistake?
“Over the years I have worked with many people and trough naivety I have entrusted people and perhaps not been as thorough with employee contracts. I have been lucky that clients have stayed loyal to our firm but we have had instances where former employees have tried to poach them. As a result I am now insistent on full proof contracts; don’t lost trust in people but do remember that greed can be an evil thing so act with caution.”
After all the mistakes, the fears, it all turned out to be worth it in the end. With two equally successful companies, it is safe to say that the hard work of starting up a company paid off in the end.