This is the recording of the webinar that is part of July’s Portfolio Showcase, presented by Sitashwa, the co-founder of Stockal.
The session aimed to provide participants with a better understanding of Stockal’s current business and its potential for growth in the cross-border financial services space.

Sitashwa explains that Stockal’s main focus is to build infrastructure for cross-border financial purposes. While they initially started with investing, they have expanded to include banking and remittance services. Sitashwa highlights the challenges faced by emerging markets in terms of expensive outward remittances and the lack of smooth processes for the flow of money.

Stockal addresses these issues by creating efficient and cost-effective infrastructure, ultimately providing a better user experience and creating more value.
Stockal’s infrastructure is used by banks, brokers, fintech companies, and wealth management firms. They primarily focus on emerging economies like India, South-East Asia, and the Middle East, offering international products for savings, remittances, and investments. Since their platform went live over two and a half years ago, Stockal has processed over a billion dollars in transactions and seen significant inflow and investment in assets.
Sitashwa emphasizes the importance of addressing both technology and regulatory challenges in cross-border financial services. Stockal has developed multi-country KYC capabilities and obtained licenses in various markets to comply with regulatory requirements. They have also built rails and APIs for investing, banking, and remittances.
The timing for Stockal’s business is favorable due to the disruption of traditional finance and the increasing demand for diversification in different markets. They see opportunities in investing, banking, and remittance, with a focus on retail investors and the growing affluent population. Sitashwa mentions that a significant amount of money from emerging economies is spent globally on education, travel, and family maintenance, but very little is invested in those markets. Stockal aims to provide efficient banking solutions that encourage saving, investment, and better management of funds.
Sitashwa then goes on to discuss the regulatory landscape in India, highlighting the importance of staying informed about changes and working closely with regulatory authorities. Despite the evolving nature of regulations, Stockal sees the potential for significant growth in the Indian market, especially with remittances.
Currently, as part of foreign investments, Stockal provides investing, banking, and remittance services. They are continuously expanding their range of asset classes for investing, such as fixed income, stocks, hedge funds, and managed portfolios. They are also launching reverse investing capabilities, allowing investment from other countries into the Indian market.

Sitashwa emphasizes the need for tweaks and regulatory approvals when entering new markets, but overall, the product does not require significant changes.

Stockal has obtained licenses in multiple markets to support their business operations. In terms of revenue generation, Stockal earns commissions and transaction fees from trading and transactions. Additionally, they generate revenue from subscriptions, AUM-based fees for long-term investments, and spreads on remittances.

Overall, the webinar provides insights into Stockal’s mission to build infrastructure for cross-border financial services, their focus on emerging economies, and their commitment to providing efficient, cost-effective, and regulatory-compliant solutions for investing, banking, and remittance services.