Blockchain technology enabler New Street Technologies (New Street) has bagged a $4 million funding in a follow-on round. The round saw participation from a group of private investors led by Vittal Kadapakkam in the US, prominent Indian bankers, and existing investors including Unitus Ventures and Mohit Davar, Chairman of International Association of Money Transfer Network (IAMTN). With operations in India, UAE and parts of Asia, New Street now plans to enter the Americas, Europe, and Africa.
Sajeev Viswanathan, founder and CEO, New Street said Blockchain is to ‘processing’ what the internet is to information. He said New Street has leveraged blockchain’s unique ability to democratize transaction processing and has already demonstrated its transformational impact in the BFSI (banking, financial services and insurance) sector. “The capital raised provides for accelerated product development and access to the larger global markets,” said Viswanathan.
New Street said its flagship blockchain-based middleware – MiFiX, is amongst the world’s first commercially successful blockchain ecosystems for the BFSI sector. A single MiFiX node in a bank can foster innovation across products including, trade finance, digital lending, cash management and remittances. In microfinance processing for example, MiFiX has improved operating efficiency by over 500 per cent, across the value chain. These range from bank to business correspondent to end borrower, without any significant capital expenditure to our clients.
Mohit Davar of IAMTN said the company has made it easy for financial institutions, new and historic alike, to weave the technology seamlessly into their business models and benefit from its versatility, instantaneously. “My participation in this round is testimony to the massive global opportunity that exists for the company and my faith in the team to make it happen,” said Davar, who is also co-founder and non-executive director, New Street.
Another investor, Srikrishna Ramamoorthy, Partner at Unitus Ventures is of the view that blockchain technology in banking is like the internet boom in the 90s. He said this technology explosion will transform the functioning of banks, especially with initiatives undertaken by the RBI (Reserve Bank of India), now several private and public banks are adopting the benefits of blockchain technology. “We have also seen how blockchain technology has contributed to the ease of doing business by simplifying lending to micro, small and medium enterprises (MSMEs),” said Ramamoorthy.
Vittal Kadapakkam, an active investor in the blockchain space said New Street’s interpretation of blockchain and their go-to-market strategy are unique.
Many Indian businesses are at the forefront of innovation and understand the value of blockchain technology. New Street’s business model helps its clients adopt new-age technologies to improve their processes and prospects exponentially without disruption and at minimal capital investment. The firm is making rapid inroads with banks, NBFCs, insurance companies, P2P lenders in India, Money Transfer Operators (MTOs) and banks overseas. The startup is also in conversations with multiple central banks to develop its blockchain technology ecosystems for the BFSI sector in their countries.