Skydo, a cross-border payments platform designed to support small and medium-sized enterprises (MSMEs) and freelancers, has successfully raised $5 million in a pre-Series A funding round. The funding was led by Elevation Capital, a significant backer of the startup, demonstrating continued confidence in Skydo’s growth potential.
Purpose of the Funding
The newly acquired capital will be used to enhance Skydo’s operations, with a strong focus on improving risk monitoring and strengthening compliance measures. The startup aims to use these funds to expand its reach across multiple countries by acquiring payment licenses in various geographies. This expansion will enable Skydo’s customers to send and receive payments across borders more efficiently and securely.
Srivatsan Sridhar, Co-founder and CEO of Skydo, expressed optimism about the company’s future: “This investment will help us acquire payment licenses across geographies, expand internationally, and enable customers to send and receive business payments across multiple countries.”
What is Skydo
Skydo was founded in 2022 by Srivatsan Sridhar and Movin Jain, both of whom bring significant experience to the table. Sridhar previously led business operations at Ola, while Jain served as the head of the payments product at PhonePe. Together, they created Skydo, a tech-driven platform that simplifies and streamlines cross-border payments for MSMEs and freelancers.
Skydo’s platform is designed to offer real-time tracking of cross-border payments, providing transparency and ease of use for its customers. The platform supports various payment methods, including payment links, cards, and bank transfers. Additionally, it offers tools like a savings calculator, which helps freelancers and exporters identify hidden costs associated with foreign transactions.
Since its launch, Skydo has processed over $100 million in payments for more than 6,000 Indian small and medium-sized business (SMB) exporters, proving its effectiveness and reliability in the market.
Payments in Multiple Currencies
Skydo’s platform is connected to six global banks and various international payment systems, allowing it to facilitate payments in 32 different currencies. This capability is particularly beneficial for businesses and freelancers who operate in multiple countries, as it provides them with the flexibility to manage their finances more effectively.
The startup’s primary markets include major economic hubs like the United States, United Kingdom, Canada, Europe, Singapore, and the UAE. These regions account for 80-90% of remittance inflows into India, making them crucial areas for Skydo’s operations.
Operating Under RBI Framework
Skydo operates under the Reserve Bank of India’s (RBI) Online Payment Gateway Service Provider (OPGSP) framework, a widely used payment method by over 300,000 MSME exporters across India. In addition, Skydo has applied for the Cross-Border Payment Aggregator (PA-CB) license from the RBI. If granted, this license would further solidify Skydo’s position in the international payments space, allowing it to offer even more comprehensive services to its clients.
Skydo’s recent funding round is a testament to its growing influence in the cross-border payments sector. With plans to expand internationally and acquire key payment licenses, the company is well-positioned to support the needs of MSMEs and freelancers, helping them navigate the complexities of global payments with ease.
