This week’s episode of Funding & Disrupting presented by Oura Collective introduces the CEO of Fable Fintech, Naushad Contractor. Keith Harman interviews Naushad to gain insight into his personal and professional career.
Naushad Contractor is candid and takes the listeners through his journey of changing professions and becoming an entrepreneur.
How the idea of Fable Fintech evolved?
Keith Herman asks Naushad about the backstory of building Fable. Naushad openly discusses how he got the idea of creating a platform like Fable at a time when the internet was yet evolving. He tells Keith how he used to witness technological development from the era of his grandparents.
He observed how the older generations only had access to radios and black & white televisions in the name of technology. Soon, people started using mobile phones and in no time upgraded to smartphones. Throughout the years, Naushad observed how people need to change with changing technologies.
With time, Naushad felt that globalization calls for global payments. He did his research and discovered what no company was providing a plug-and-play cross-border transaction solution at that time. He started feeling that there were a zillion reasons for internet transactions. It was in 2014-15 when Fable came into existence. Today, Fable serves almost seven different platforms. Naushad believes that their products resonate with the customers and do well in the market.
When Keith asks about forming a team for Fable Fintech, Naushad Contractor tells his team-building rules. He even says that the team of the right people makes all the difference. Naushad describes how he doesn’t look for Ivy league graduates or college students. He prefers to team up with people who have domain expertise. Today, Fable has more than 200 team members. At Fable, Naushad hunts for people who he can trust and who will trust him.
Problems and Challenges Faced by Fable
Just like any other startup with an innovative idea, Fable too had to witness a lot of problems and challenges to succeed. Keith asks about the problems that Naushad had to face while developing and growing Fable. Naushad honestly discusses two critical problems he had to face initially and still faces sometimes.
He explains how two main factors determine their prosperity. He believes that the size of transactions varies from person to person or business transactions. While person-to-person transactions are minimal, business transactions vary in size. He explains the two main types of business transactions: First, the big amounts used for business trades. The second type is the sub hundred thousand types transfers.
Another problem that Fable acknowledged was the heavy money transfer margins taken by most platforms. Naushad found that most banks were charging high margins causing a lot of inconvenience to the customer. Fable took the challenge of easing cross-border transactions.
Keith asks Naushad about the challenges Fable faced, Naushad’s response will surprise you. Naushad tells how large banks would buy the same platforms as Fable for five times the price. It was the biggest challenge for them as Naushad believes that they were not a high-burnt startup. Most large banks rely on bigger companies because of the legal comfort. He also addresses how difficult it was for Fable to convince large banks to deploy their platform.
The Marketing Strategy & Fundraising Process
In the next section of the podcast, Keith and Naushad discuss effective marketing strategies for startups. Naushad tells how Fable will work hard to let more and more banks know about their existence. He feels they are flying under the radar and have reached success now. It is mainly because banks trust them. He jokingly says that banks wouldn’t let billions of dollars flow through their platform without trust. Naushad feels proud as he says that 70% of customers have bought 2-3 platforms from Fable.
When it comes to marketing, you’ll love how Naushad explains using different strategies for customers of different countries. He believes, ‘No one size fits all.’
Keith further discusses the fundraising journey of Fable. Pentathlon has recently invested in Fable. Naushad shares the complete story behind funding from Pentathlon. They met through an investment banker and existing shareholder. Pentathlon predominantly invested in SAAS tech companies, so there was a great synergy between the two.
In the podcast, Keith asks Naushad for the characteristics they looked for while fundraising. Naushad asks prospects to ‘Look for capital beyond money.’ He explains how the quality of money is crucial, but so is learning and forming healthy relations. Fable looks for helping hands and not just capital investors.
Naushad Contractor: An Unstoppable Entrepreneur
You’ll love to listen to how many times Naushad changed his professions before becoming an entrepreneur. From accounting, sales, business, and marketing, to being a General Manager and finally the CEO of Fable.
Naushad discusses how he wanted to be an architect once he grows up. However, he discovered that it took a lot of hard-work and study. So, he soon gave up the plan and transitioned to comparatively easier career options. Apart from work, Naushad relaxes by spending time with his 12-year-old daughter or playing snooker.
Naushad Contractor advises budding entrepreneurs to follow their passion. He believes if you have an idea, go for it. However, he also suggests entrepreneurs not copy the ideas of other startups. Naushad says if you try to be the next Uber, you won’t succeed. He also tells entrepreneurs not to build a startup just because it looks fun.
He further asks budding entrepreneurs to be objective-driven during the fundraising process. It is so because, if you have the right objective and plans, you can convince investors to give money in no time.
Fable Fintech Story Notes
- The Backstory of Fable Fintech
- Team-building & Common Mistakes
- Problems and Challenges Faced
- Future Marketing Strategy
- Fundraising & Due Diligence Process