As an online payments system, nimble-footedness is important for PayPal. “There is a lot of danger of fraud in online transactions. We need to detect and prevent it before it happens,” says Guru Bhat, General Manager of the American company’s Chennai Technology Centre. PayPal also has a centre in Bengaluru. The two centres develop software that facilitate online payments, and also make them risk free.

But being nimble doesn’t come naturally to a large organisation, like the $9.2 billion MNC. That is why PayPal is banking on the startups it is mentoring through its accelerator programme Start Tank.

“They are able to innovate at a phenomenal space. The ability to take feedback and make changes…these people turn it around in a day. That agility is a huge learning for us,” adds Bhat.

Anand Ramachandran and his two fellow founders of Fantain showed that agility in changing the business model of their company. The three techies, each with about 20 years of experience in the IT industry, turned entrepreneurs wanting to start something of their own.

They developed an app called PlayCall, which allowed a sports fan to take decisions, just like a captain of a team, in real time as the match is played out. It did well, but in a “limited sense.” Says Ramachandran, a former Wipro veteran: “It was costing us a lot to acquire fans, and even more to retain them.”

When the founders heard that PayPal was looking for startups , the three grabbed the opportunity. Fantain joined Start Tank in late 2013, along with three other startups. The PayPal accelerator is also present in London, and earlier this year opened in Singapore.

“It was a 12-month engagement and the duration resonated with us. We were not the typical startup founded by college kids,” says Ramachandran. At the Chennai Centre, the Fantain team understood the matrix of scaling up. They used PayPal’s network to hire interns, two of whom later became employees. “We didn’t have contacts to raise funds. PayPal helped us,” adds the co-Founder and CEO. The biggest change has been in Fantain’s business model, transforming from a B2C to B2B company. By the end of its stint at Start Tank, Fantain got its first client in KKR, helping the Shah Rukh Khan-owned IPL team to engage better with its fans.

At present, it also has KKR’s peer Sunrisers Hyderabad, and Shah Rukh Khan’s Red Chillies Entertainment as clients. The biggest moment was the acquisition by ticketing site Bookmyshow.com. “The founders continue to run the company,” says Ramachandran.

At Paypal, the Start Tank said goodbye to its second batch in February. “It gives us immense satisfaction that all the startups have got investments,” says Bhat.

Related Topics
comment COMMENT NOW