Pitch Competition Kumar Guarav Cashaa | Blockchain: Out of the Labs

Once again, we have Kashya with Kumar, or Kumar from Kashya, backwards there, sorry.

Yeah, thank you so much, Vince. So Kashya is a UK fintech company, and we were able to figure it out that how to use cryptocurrencies or the ICO, ITO, every day coming new tokens into something which can also help average human beings who have no involvement with all this fancy stuff which is we all are talking about here in this room. So we were able to figure it out that how we can use this energy, which is today crossed $30 billion in market cap, in 24 hours moving $500 million to make something meaningful for the average consumer and use this technology to help people to achieve some advantages. And after doing this work, we found that we can find something to build which can help people to move their money, not at low cost, but it can almost finish the cost which they have. Bitcoin और all these cryptocurrencies are being not or say say bad because of one reason that they have high volatility, they have high arbitrage, high spread and that's the reason most of people just want to avoid it and not get into this. But still that's true that this market able to make thirty billion in a market cap with five hundred million a twenty four hour volume which gives there is ample room for movement of these cryptocurrencies. If we see, so what Casha does, Casha just correlates these 2 different industries. The industry which was previously belonged just for the cash sender where people are moving money, which was expensive, hidden fee, money laundering, slow, and there was no transparency in the system. Complete different set of problems with a complete new set of problems which came with this new industry that there is not enough liquidity in the market, they don't have a global access, You don't have security, lower speculation, and centralized failures with the exchanges. And Tasha is able to merge these 2 different problems to create a new market opportunity. So the market opportunity which we have with the $540 billion of remittance market, with more than $200 billion which is like in cash right now, with approx $100 billion of annual, which is right now more because suddenly something happened to Ether and it's grown like 6 times higher. So, but, but even in the worst way, when I, I made this analysis, we have like $100 billion of annual movement of cryptocurrencies. So this is a complete new market which we are trying to see that which are the key markets where we have most the movement of these Bitcoins or different cryptocurrencies, and which are the routes where mostly the money moves from high liquid market to the low liquid market. And after doing this Just just to simplify what the process does, it's it's a very simple graphical representation what casha does. So casha is correlating these two different segments. We had the speculators, sellers and buyers of Bitcoin, and the traders who are sorry or people who want to just send and receive money. And this is a very simple diagram which explains what's really happening behind the hood. But this is not Technically, I would say completely true, but yeah, it gives a fair idea of what's happening around. So yeah, so by using this, we're able to make some of these things zero cost, have global access. We are now— we started with the idea to deliver cash, but then because we chose India as one of our primary markets and something happened called demonetization in India, dried up the entire cash in India, which forced us to go through the bank transfers. And we started doing the bank transfers in India at the same price of zero cost. So for average consumer products which we have is a bank transfer, P2P market, retail forex, and merchant payments which we are building. For consumers, we have consumers cryptocurrencies OTC market, P2P exchange. So if you are launching a new currency and you able to find out consumers in US, you can come us come to us to find the consumers in Low liquid markets like India, Nigeria, and we can expand. And that's the reason we are in talk with some of the big cryptocurrencies market like Ripple, who want to expand into different markets but have no idea how to go into these markets because then you have to set up an exchange there. But Cash App can do this without setting up your exchange there because if you have got liquidity and customer in the other market, we can just balance them. So as a partnership The question comes, how you acquired your first customer who believes that the technology can move your money free? Because we got addicted to using some of the big corporations, not from decades, but from centuries. And that's where we are hitting. We are directly partnering some of these guys sitting at the corner shops collecting cash through any ways.

Thank you.

Yeah.

Judges? So you're giving it away for free. How are you making money?

Sorry. Yes, we are not giving it away for free. So this was the funny story which I I told that we started with a free model, nobody believed us, so we moved the model that $1 transaction fees and we grew like 500% time more. So we make money 2 ways. First, $1 of fiat transaction fee, and second, the arbitrage opportunity between 2 different markets. So we have 2 main areas where we make money. Third, we make money because Cash App is also— Cash App trading platform is also P2P. So you are making money trading from the arbitrage? exchange, something like LocalBitcoins or any cryptocurrency exchange. So we have a flat fee there. So it's a third form to have to make money. So these are the primary 3 ways in which we make money.

So the arbitrage opportunities are going to go away over time. I mean, they were definitely there when Bitcoin was Selling for $1,000 in India and $600 here because of the currency exchange. But that, that sort of thing is gonna— that's definitely disappear.

Yes, they already disappeared, I'd say. Like right now, the— between India and—

So that first line is going to be gone. So it's all on your flat fee on transaction and then the fee from the local crypto.

It depends that how much it has gone. Is it gone completely or it's swayed? Because even if it's more than 2% or 3%, that's more than enough, which we just see in a gold market or a gold e-market where still you have these arbitrage between different markets. So we are not expecting arbitrage of 50% or 100% between these 2 markets. As long as you have these arbitrage greater than 1%, it's okay. If you don't have, still you have different ways, and then you just play on the volumes into these markets.

What's your daily volume transaction size right now?

So now we can handle up to £300,000 a day as a transaction volume.

But is that what's happening? Yeah. How much is happening?

In a day right now, we do £20,000 to £25,000. We are only between UK and India and UK and Nigeria. But most of our volume is happening between UK and India.

How do you ensure you're complying with KYC and AML regulations around money movement?

That we do by ourselves. So we have very strict KYC policies. You cannot move more than £1,000 a day, and you cannot keep doing it every day because then we detect and we block your account if we don't have enough. So how it works, the customer onboarding process works with the KYC. So before sending a single time, you need to pass through the KYC process. And then even if you pass those KYC process, you have a daily limit of thousand pounds.

So how big is your team?

We are six people.

These guys are doing a lot of stuff.

Yeah, and that's why we limited ourselves into a different in a small markets. And that's the reason to choose UK, because UK is one market, one state regulations, one license. And once you control the UK market, you control some of the major corridors. So it's decreased significantly the marketing cost, because you don't need to go to find receiver, because receiver comes free with the senders. So if you're able to find senders, a concentrated volume of senders, How long have you been operating for? 1.5 months.

And you're at $25,000 a day roughly?

Yeah, we moved total—

How many transactions per day is that?

Yeah, total we have moved on our crypto P2P exchange and including transfer, approximately $2.5 million.

Wait, so you, you, uh, earned $2.5 million on fees?

No, it's total volume.

Total volume. How many transactions, meaning how many people paid you $1 per transaction?

Around $120.

$120 total that's come in that way.

That's right.

And then how about the crypto?

So here's the thing.

How much is coming that way?

No, in crypto for the moment, because we also have this problem that you have to build both the market, the crypto market for the moment to give a competition or have a better competition, we made it free. So if you are a trader, you want to do, because we also have to solve the community problem that we want more and more traders on our platform. So the crypto trading site right now is completely free. So you can trade free because we have this top 3 ways of revenue. It's not necessary to start earning from top 3 ways now. Maybe we can activate when we lose 100% arbitrage opportunity. Excellent.

Thank you very much. Thank you. Okay, I want to make sure— stay on stage with me for a moment. So I want to make sure we stay in the