CheqUPI, a fintech startup focusing on Unified Payments Interface (UPI) wallets for foreign nationals, has successfully raised $500,000 in a pre-seed funding round. The round was led by a well-known accelerator program, which will also include the startup in its summer 2023 cohort.
CheqUPI and the Pre-Seed Funding
Founded in 2021 by Manish Kumar Shukla and Sudhanshu Shekhar, CheqUPI collaborates with Transcorp International Limited to develop its app. This app allows users to load funds through debit or credit cards, ensuring a hassle-free, cashless travel experience.
Utilizing the New Funds
The funds raised in this round will improve the app’s user experience, extend CheqUPI’s reach to additional countries, and increase the number of supported currencies. Moreover, the startup aims to forge partnerships with more financial service providers and merchants in the travel industry. This will ultimately lead to a seamless payment experience for CheqUPI users.
The Benefits of CheqUPI’s Payment Platform
CheqUPI’s secure payment platform has gained significant attention from tourists seeking a convenient and safe way to manage their travel finances.
The platform helps reduce dependence on ATMs and lowers foreign exchange expenses for users. CheqUPI has already served clients from 24 different nationalities, with the majority coming from the United States, the United Kingdom, and Germany. This comprehensive user base highlights the global appeal of digital payment methods for international travelers.
Growth and Expansion Plans
CheqUPI has set ambitious goals for itself, aiming to cater to more than 50,000 travelers in the 2024 fiscal year. Before this funding round, Angellist held a 3.86% share in the company as the sole investor. The additional funding will allow CheqUPI to expand its services further and establish itself as a key player in the industry. The increased investment is also expected to boost revenue and create new employment opportunities, bolstering the company’s overall success.
Targeting Non-Resident Indians and Tourists
The startup seeks to develop more fintech products on the UPI platform, specifically for non-resident Indians and tourists. CheqUPI aspires to become a go-to solution in the global fintech market by offering seamless and secure payment options customized for these user groups.
Collaboration with Transcorp
CheqUPI currently provides its UPI services through a co-branded agreement with Transcorp. The partnership has facilitated seamless user transactions and extended the company’s presence in the digital payments landscape. As the demand for UPI services grows, innovative solutions catering to the changing needs of customers and businesses are expected to emerge from this collaboration.
The Impact of RBI’s Decision on Co-Branded Prepaid Payment Instruments
Despite the growth and expansion of UPI-based fintech startups, challenges remain. The Reserve Bank of India (RBI) has called for an end to all co-branded prepaid payment instruments on the UPI platform. This decision has left many fintech businesses concerned about the future of their partnerships and product offerings.
Companies in the industry now face the task of adapting to these changes, with the long-term impact on India’s digital payments landscape yet to be determined. However, with a clear focus on catering to the needs of non-resident Indians and tourists, CheqUPI remains well-positioned to continue growing and offering valuable solutions in the digital payment space.
What is CheqUPI?
CheqUPI is a fintech startup focusing on Unified Payments Interface (UPI) wallets for foreign nationals. It aims to provide users with a hassle-free, cashless travel experience by allowing them to load funds through debit or credit cards, reducing dependence on ATMs and lowering foreign exchange expenses.
How much funding has CheqUPI raised in its pre-seed round?
CheqUPI has successfully raised $500,000 in a pre-seed funding round led by a well-known accelerator program.
What are the plans for utilizing the newly raised funds?
The funds will improve the app’s user experience, extending CheqUPI’s reach to additional countries, increasing the number of supported currencies, and forging partnerships with more financial service providers and merchants in the travel industry.
What benefits does CheqUPI’s payment platform offer?
CheqUPI’s secure payment platform offers international travelers a convenient and safe way to manage their finances while reducing its dependence on ATMs and lowering foreign exchange expenses.
What collaboration does CheqUPI have with Transcorp International Limited?
CheqUPI provides its UPI services through a co-branded agreement with Transcorp International Limited, facilitating seamless user transactions and extending the company’s presence in the digital payments landscape.
How does CheqUPI plan to cater to non-resident Indians and tourists?
The startup plans to develop more fintech products on the UPI platform specifically tailored for non-resident Indians and tourists, aiming to become a go-to solution in the global fintech market.
What is the impact of RBI’s decision on co-branded prepaid payment instruments for CheqUPI?
Although the decision poses challenges for many fintech businesses, CheqUPI remains well-positioned to continue growing and offering valuable solutions in the digital payment space by focusing on catering to the needs of non-resident Indians and tourists.