Inkle launches new platform for cross-border payments for startups

Customers will be charged a fixed markup of up to 0.50% on the mid-market forex rate on their transactions

Chat-based CPA software-as-a-service (SaaS) startup Inkle on Wednesday launched a platform, Inkle Transfer Pricing Payments, to allow startups to make cross-border payments from the United States of America (USA) to India. The funds can be transferred within one day.

The company launched the platform's beta version last month. Startups like GoBillion, Synth and 91SquareFeet have already transferred close to $1 million using the platform.

Stating the needs of such a platform, Anand Krishna, founder and chief executive officer (CEO) of Inkle, said, "We realised cross-border remittances between group companies for small startups is a critical but challenging function for thousands of startups in India. In most cases, the founders are confronted with extremely high forex rates, have no clue what will actually land in the destination bank account and do not know how to handle the accounting reconciliation and compliance."

"The funds, which never touch Inkle's accounts, move via the world's largest banks, and we ensure end-to-end safety and security of funds," he added.

"We have been using the platform for the last few months and it saves at least Rs 0.7-0.8 per dollar transfer," said Amit Mishra, co-founder of 91SquareFeet.

Customers will be charged a fixed markup of up to 0.50 per cent on the mid-market forex rate. Besides, startups will get free Foreign Inward Remittance Advice (FIRA) for each transfer on the software.

It is part of the broader intercompany stack Inkle is building for small cross-border multi-entity groups of companies. Customers will also get access to an intercompany ledger to log and monitor all intercompany transactions, intercompany document vault, and other intercompany compliance and accounting tools, the company said in a release.

Currently, the platform is available to US startups with an Indian subsidiary.