In an interaction with Mamta Maity, indiainfoline, Kallol Borah said, “The flow of overseas funds, both through FPI and FDI routes, have been significant with record inflows into capital markets in India..”
Could you brief us about Verified AG and the platform you are offering?
Verified AG is a Swiss manager of a securitization company called Verified Securities based in Luxembourg. Verified Securities can issue securities to investors in EU, UK, and Switzerland which are based on the assignment of underlying assets such as fund units, shares, debentures and physical assets.
What is one exciting thing about Verified that everyone should know about?
Verified enables qualified asset managers raise capital and access European investors. We assist fund managers and corporate clients in the entire fund raising process by setting up the issuer, registration, and operations on a European settlement platforms such as Clearstream, distribution, compliance and investor relations. Essentially, we offer a growth route to Indian companies who earlier did not have access to the European market in a regulated environment.
What is the biggest gap or challenge that you are trying to address here?
The Verified issuing platform is the only platform available in the market that reduces the cost and time to market, set up, and run an issue of securities. We enable the issue of securities in bearer, registered, and tokenized forms, which optimizes distribution reach and liquidity of issues. This has eventually opened up issues to family offices, asset management companies, and fund of funds partners of Verified with total AUM in excess of $20bn.
Please share your team's background and experience.
Verified AG is a Swiss company set up by Kallol Borah who has more than 18 years of experience in building and running business ventures across Europe, Japan, and India. Other members of the team include very senior industry professionals having experience of running project financing, banking, and merchant acquisition businesses in India and Switzerland.
Why India and how big is the Indian market?
The flow of overseas funds, both through FPI and FDI routes, have been significant with record inflows into capital markets in India. Foreign portfolio investors are bullish on India, if you have noticed investment value of top FPIs in Indian shares have doubled in last 5 years. We at Verified believe that the timing is perfect and that it is important to offer a hassle-free and cost-effective investment experience for our investor and corporate client base.
Who are your existing partners and customers?
We have a few active partnerships with banking, non-banking, and asset management companies. We also work with some of the brightest people in law and finance from advisory companies who have helped us understand and navigate the regulatory and legal landscape. In India, we are working with a PE firm to help them raise capital from Europe. We are also in the process of doing a private debt issue to investors with the objective of making debt investments in India.
How does your business model work and who is your competition?
We charge a mix of fixed fees for setting up and operating issuers, which are set up specifically for our clients, and variable compensation based on the capital raised. The issuers offer a long-term, cost-efficient, and stable route of raising capital in tranches. For investors, securities issued from our platform allow them to invest in underlying assets in india where such private investment opportunities are otherwise limited. This is also a cost-efficient way of investing because asset securitization does not always incur fund management fees unless assets securitized are onshore India-based fund units themselves.
What is your growth strategy?
Our single point agenda is to help our clients raise funds through our very exciting business model and innovative technology platform. Currently, we are also identifying non-banking finance companies that we can work with to source capital for a variety of asset classes. Our maiden issue for private debt is for $100mn, and we will continue to scale that. In addition, we intend to start looking at infrastructure and real estate assets in the near future.