Blockchain tech startup New Street raises funds to grow globally
Blockchain technology facilitator New Street Technologies (New Street) has secured $ 4 million in funding in a follow-up round. The cycle saw the participation of a group of private investors led by Vittal Kadapakkam in the United States, prominent Indian bankers and existing investors, including Unitus Ventures and Mohit Davar, president of the International Network Association of money transfer (IAMTN). With operations in India, the United Arab Emirates and parts of Asia, New Street now plans to enter the Americas, Europe and Africa.
Sajeev Viswanathan, Founder and CEO of New Street, said Blockchain is to “process” what the Internet is to information. He said New Street has taken advantage of blockchain’s unique ability to democratize transaction processing and has already demonstrated its transformational impact in the BFSI (banking, financial services and insurance) industry. “Raised capital helps accelerate product development and access the world’s largest markets,” said Viswanathan.
New Street said its flagship blockchain-based middleware – MiFiX, is one of the world’s first commercially successful blockchain ecosystems for the BFSI industry. A single MiFiX node in a bank can drive innovation across all products, including trade finance, digital lending, cash management, and remittances. In the processing of microfinance for example, MiFiX has improved operational efficiency by more than 500%, all along the value chain. These range from the bank to the commercial correspondent through the final borrower, without any significant investment expenditure for our clients.
Mohit Davar of IAMTN said the company has enabled new and historic financial institutions to integrate technology seamlessly into their business models and benefit from its versatility, instantly. “My participation in this cycle is a testament to the huge global opportunity that exists for the company and my confidence in the team to make it happen,” said Davar, who is also a co-founder and non-executive director of New Street.
Another investor, Srikrishna Ramamoorthy, partner at Unitus Ventures, believes blockchain technology in banking looks like the internet boom of the 90s. He said this technological explosion will transform how banks work. Particularly with the initiatives undertaken by the RBI (Reserve Bank of India), now several private and public banks are embracing 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 its go-to-market strategy is unique.
Many Indian companies are at the forefront of innovation and understand the value of blockchain technology. New Street’s business model helps clients adopt new-age technologies to improve their processes and prospects exponentially without disruption and with minimal capital investment. The company is making rapid inroads with banks, NBFCs, insurance companies, P2P lenders in India, money transfer operators (MTOs), and overseas banks. The startup is also in talks with several central banks to develop its blockchain technology ecosystems for the BFSI sector in their countries.