Exchange rate volatility has long been a major concern for cross-border businesses. Historically, companies have sought protection by purchasing foreign exchange (FX) insurance or options, but most of these financial products operate like giant ‘black boxes’, making it difficult to understand the risks and benefits.
Finofo: A Solution to Exchange Rate Volatility
Finofo is a startup that aims to provide more transparency and control to users in the opaque FX world. Founded by Charles Maranda, Prateek Sodhi, and Malav Shah, Finofo’s platform allows businesses to get multi-currency accounts, send and receive money globally, convert currencies, and automate accounts payables.
"We don’t put any barrier through a SaaS fee so companies can start using our product right away," said Charles Maranda, co-founder and CFO of Finofo. "We want to democratize this process for businesses."
The Problem with Traditional FX Products
Most traditional FX products operate like giant ‘black boxes’, making it difficult for businesses to understand the risks and benefits. As Maranda explained, "These products are complex and often opaque, making it hard for businesses to make informed decisions about their FX risk management."
How Finofo Works
Finofo’s platform is designed to be user-friendly and transparent. Businesses can sign up for an account on the platform, which provides them with a multi-currency account that they can use to send and receive money globally.
The platform also allows businesses to convert currencies and automate accounts payables. This means that businesses can save time and reduce their FX risk by automating their currency conversion and payment processes.
Target Market
Finofo is targeting the Canadian market first, through a local banking partner. The company has also registered with FINTRAC, Canada’s financial intelligence unit.
"We’re starting in Canada because it’s our home market," said Maranda. "But we plan to expand globally as soon as possible."
Challenges and Solutions
Winning user trust for a financial planning app that also handles transactions is undoubtedly a challenging task. To address this challenge, Finofo is allocating plenty of resources to customer service and education.
"We’re always available and find solutions on the spot," said Maranda. "You have to do the thing that doesn’t scale first."
Conclusion
Finofo’s platform provides businesses with a user-friendly and transparent solution to exchange rate volatility. By automating currency conversion and payment processes, businesses can save time and reduce their FX risk.
As Finofo continues to grow and expand globally, it will be interesting to see how the company addresses the challenges of winning user trust and expanding its services in new markets.
About Finofo
Finofo is a startup that provides businesses with a solution to exchange rate volatility. Founded by Charles Maranda, Prateek Sodhi, and Malav Shah, Finofo’s platform allows businesses to get multi-currency accounts, send and receive money globally, convert currencies, and automate accounts payables.
Team
Finofo is run by a team of seven people, most of whom are based in Calgary. The company has also registered with FINTRAC, Canada’s financial intelligence unit.
Investors
Finofo has managed to get the attention of 16z, a prominent venture capital firm. Although the investor eventually passed on the deal, it played a crucial role in facilitating introductions to other investors who ended up joining the round.
Conclusion
Finofo’s platform provides businesses with a user-friendly and transparent solution to exchange rate volatility. By automating currency conversion and payment processes, businesses can save time and reduce their FX risk.
As Finofo continues to grow and expand globally, it will be interesting to see how the company addresses the challenges of winning user trust and expanding its services in new markets.
