Moses Lo, MBA 15, has lived a border-spanning life. Born in Singapore to a family with roots in Malaysia, Indonesia and China, he spent his early years in a one-room house with a bucket shower before moving to Australia—and indoor plumbing. For a time he had a business selling custom suits made in Thailand and China. He has studied in Sydney, New York, and now at Berkeley-Haas; he worked at the Boston Consulting Group and Amazon.
It was this global existence that inspired Xendit, an cross-platform app that lets anyone transfer cash around the world in seconds, for a fraction of the cost of established services like Western Union—or even upstarts like Transferwise and Xoom. The funds can go directly into a bank account, or even to a post office or convenience store where the recipient collects it.
“I grew up in one world, and moved to another, and I’ve gone between different worlds all my life,” says Moses, Xendit’s CEO. “I know first-hand how difficult it can be to move money across borders, especially for people who are outside the traditional banking system.”
The startup team includes COO Vivek Ahuja, MBA 15, a U.S. Navy veteran who spent five years on a nuclear submarine; Casey Lord, MBA 15, who worked at Paypal and in impact investing, and is serving as head of Asia; as well as as CTO Bo Chen, EECS 13 and Lead Engineer Juan Gonzalez, CS 13.
The group has made quick progress: they won the Andreessen Horowitz’s Bay Area Bitcoin Hackathon last November, coming in first among 200 competitors. They took 2nd in last week’s LAUNCH startup competition, and Xendit was a finalist at the Global Social Venture Competition in April. The team has recently been funded by one of the most prestigious names in the Valley and will spend the next few months preparing for a public launch.
Xendit is focusing first on Asia, a massive market. Remittances from the U.S. to Asia alone are estimated at $50 billion, according to World Bank estimates; transfers within Asia are billions more.
Xendit’s user interface couldn’t be simpler. Simply choose a contact’s email or phone number, choose a currency and amount, and hit “send”. The app displays real-time exchange rates, and the cash is transferred in seconds. Within seven clicks, you’re moving money across the globe.
The back end is a bit more multifaceted: The cash moves through a combination of traditional bank channels and crypto-currencies like Bitcoin and Ripple. Xendit has already negotiated relationships with banks and non-bank cash-out locations in Asia and moved $35,000 in a six-week pilot.
For bank-to-bank transfers, fees are between 1 and 2 percent. For a non-bank transfer—to someone who does not have an account and may be picking up cash at a 7-Eleven in Malaysia, for example—fees are considerably higher, because of extra service charges along the chain. Xendit is aiming to keep the fees about half of what current competitors charge.
Support Back Home
It’s that market that gives Xendit a social-impact component. Moses says he has met many low-wage immigrants over the years who lose thousands of dollars annually to send support back home. He describes Thomas, a friend in Australia who was a South Sudanese refugee. His father died during the civil war, he arrived on a UN passport and with a scholarship to study in Australia. He was always working two jobs to put himself through school, and paying 15 percent fees to send money to his family in a Ugandan refugee camp.
“Banking is unjust. It’s simply inefficient and too expensive to serve these markets,” Moses says. “I believe that a business worth pursuing should add value to our world.”
Moses says he came to Haas specifically to build an entrepreneurial venture. After taking time to build a team that spans Haas and the engineering school, he and Vivek have been able to leverage their 2nd-year MBA coursework this year to strengthen Xendit. They took Entrepreneurship with Toby Stuart and Rob Chandra, then Workshop for Entrepreneurs, offered through the Lester Center and taught by lecturers Nancy Kamei and Doug Galen.
“Startups are about the right team, the tech talent and access to funding networks,” he says. “Berkeley is the place to be for all of that.”