Fintech start-up IOUX seeks to raise $10 million; promote the ease of doing business

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Fintech start-up IOUX, which specializes in providing a holistic solution to execute legal and financial agreements to promote ease of doing business, is seeking to raise USD 10 million (approximately Rs 77 crore) within months to bolster further its presence in the sector, said its co-founder Vineet K Sachdev.

He also said that the company is introducing blockchain systems on the IOUX platform to help MSMEs establish their performance and creditworthiness to obtain funds from financial institutions on easy and affordable terms. Companies that meet their contractual commitments will gain enormously in terms of acquiring new businesses and accessing viable credit through the startup’s partner network.

The main objective of the platform registered with the Department for the Promotion of Industry and Internal Trade (DPIIT) is to become a leading player in the fields of contract creation, execution and l enforcing legal and trade agreements to promote the ease of doing business in the country and the government’s Digital India initiative, he said.

“We have already raised a small funding round of $0.5 million. We are now looking to raise around $10 million in a few months. We will work in this direction. For this, we are exploring discussions with venture capital firms. We will be looking at venture capital firms that focus on legaltech and fintech, especially those backed by blockchain technology,” Sachdev told PTI.

The company has more than 15,000 customers, including around 3,000 businesses and microfinance companies. Explaining the rationale behind the IOUX platform, he said that individuals and MSMEs face many challenges when it comes to documentation, such as legal agreements, loan and lease agreements, contracts work schedules, HR agreements, and funding and service agreements.

“Thus, the IOUX platform provides a single solution to all these problems. We have templates for all of these agreements which are written by experts in the field and are also verified by law,” Sachdev added. HP Kumar, who is also a co-founder of IOUX, added that the platform helps solve financing, compliance and legal agreement issues, which in turn promotes the ease of doing business and improves the country’s business environment, especially for MSMEs (micro, small and medium enterprises).

“All of these issues can be solved through our platform,” Kumar said, adding that “our specific vertical products include online creation of legal/security contracts and other documents; e-sign any document; upload drafts/samples of documents and agreements; obtain stamp paper online; verify and authenticate the identity of any person/company (eKYC)”.

Kumar added that the platform promotes ease of doing business through expedited contract execution and enforcement. “The fintech and legaltech services offered by our company are unique and no other company in India provides such services in an integrated manner. Our company has already filed three patents and received two,” he added.

The government has granted patents for a secure system and method for generating and monitoring a smart contract using a computer-implemented distributed ledger; and the Contractual Dispute Resolution Mechanism (CDRM). It is also registered with CERSAI, CKYC, credit rating agencies/bureaus like CIBIL, CRIF, Equifax and Experian. The company has an in-house technology team that developed the entire software system with investment from the founders.

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