Prashanth Ranganathan has launched Zinc Money to blend wealthtech with AI, aimed at assisting Indian families in financing overseas education. The venture received significant backing from Nexus Venture Partners, indicating confidence in Ranganathan’s experience. As the fintech landscape sees a shift, Zinc Money plans to provide comprehensive financial solutions while tackling the challenges of a competitive market.
Prashanth Ranganathan, a serial entrepreneur, has launched Zinc Money, a new venture positioned at the convergence of wealthtech and artificial intelligence (AI). Following his resignation as CEO of PayU in 2023, Ranganathan’s goal is to assist Indian parents in financing their children’s aspirations for overseas education. His emphasis lies on catering to the ambitions of families from tier 2 and tier 3 cities, which he believes have been underserved in this regard. Ranganathan’s entrepreneurial path began in 2006 with a voice messaging platform, SayNow, which he developed alongside partners. Subsequently, he ventured on his own, creating Truvie Security, a fraud detection service, which he later sold to PayPal. Through this sale, he gained significant experience that paved the way for future successes in the fintech sector. After the acquisition of PaySense by PayU for $185 million, Ranganathan has garnered support again from Nexus Venture Partners for Zinc Money, which is currently in its seed funding stage. Nexus’s previous investment in PaySense allowed them to achieve a lucrative exit, demonstrating their confidence in Ranganathan’s ventures. Ranganathan observes that while many fintech companies exist in India, numerous have become overvalued, making exits challenging. The notable downturn in startup valuations since 2021 has made it difficult for even successful companies to attract new investments. He emphasizes a need for startups to build defensible businesses to thrive in the current environment rather than solely depending on high valuations. Zinc Money intends to simplify financial planning and investment for families aspiring for study abroad options. Ranganathan points out that their proprietary AI-driven advisor, Ada, will also provide study abroad counseling. The startup aspires to build an all-encompassing financial services platform for Indian families, covering everything from brokerage to foreign remittance and lending. With approvals in place for various licenses from regulatory authorities, Ranganathan emphasizes that success at Zinc Money requires robust capital and a long-term vision. In the long run, he hopes to serve millions of customers either directly, through partnerships, or via public markets, adapting strategies as necessary.
Prashanth Ranganathan has a rich background in entrepreneurship, having successfully navigated the fintech landscape since 2006. His ventures prior to Zinc Money include PaySense and Truvie Security, both of which achieved notable exits. Ranganathan’s current initiative, designed to assist families in financing education abroad, aligns with evolving trends in wealthtech and the growing demand for financial services tailored to international education needs.
Zinc Money represents a strategic combination of wealth management and artificial intelligence aimed at supporting Indian families in higher education financing. With solid backing from venture capital and a focus on creating a robust business model, Ranganathan’s new venture aims to carve out a prominent space in the changing landscape of fintech and edtech.
Original Source: www.livemint.com
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