Looks like they finally changed things up for the better. I had posted about them before, was pretty sure they'd shut soon because their RBF+escrow model just didn't make sense as a business owner.
You cannot justify taking money yourself first and then transferring to your client after deducting your charges. Cash flow is everything for a small business, becoming a gatekeeper is stupid when bank loans and even informal loans are an option. I even told this to their team upfront.
Looks like they still have it but NACH option is good and rate of interest is almost at par with banks and nbfcs now (quoted 1% per month). Was checking out Kinara capital recently, they charge 24% annually which is double the cost.
I hope velocity can turn things around with their lessons, and it's not too little too late. Let's see how it goes.
Not surprised. They have a shitty model. Probably going to shut this FY or next unless they turn things around 180 degrees and fast. Similar case for others they've mentioned in the article as their competition.
Let's ignore what's wrong with startups, keep this an optimistic thread. Which startups make you excited about their future? The ones that have cracked product, GTM, model, or something else.
Name the best Indian startups :)
Grapevine 🙏🏻❤️
