Backed by Entrepreneur First, game-based Saving app Fello on a journey to make India financially literate

Fello, short for ‘Hello to Finance’, is India’s first game-based savings app that helps you grow your money by interactive saving in secure assets.  This tech-based finance platform incentivizes users, particularly Gen-Z, to save and achieve higher returns than traditional savings accounts. Fello has witnessed remarkable growth since its inception under the visionary leadership of Manish Maryada (Co-Founder & CEO) and Shourya Lala (Co-Founder & CTO). Conceptualized at UK-based talent investment firm Entrepreneur First’s (EF) cohort program, the startup has witnessed exponential growth. With a mission to revolutionize the world of finance by infusing it with excitement, ease, and incentives, Fello has amassed the loyalty of more than 8 Lakh users. The company’s meteoric rise has been further bolstered by a recent $4M funding round, led by Courtside Ventures.

In this interview, we will take a closer look at Fello’s journey so far and explore the challenges and opportunities the startup faces.

1. Describe Fello’s entrepreneurial journey.

Ans. Fello’s entrepreneurial journey began with a unique and experimental vision. As co-founders, Manish and I identified a critical issue in India’s financial landscape – the lack of financial literacy among early salaried individuals. Despite a significant increase in their average spending power, their traditional saving habits remained outdated. With Fello, we aimed to disrupt the status quo and introduce a new generation to alternative investments and better finance practices in a fun, simple, and rewarding way.

Our goal was to gamify the traditional savings and investment concept to incentivize young individuals to save more effectively. Fello’s platform encourages users to save, grow their money, and earn returns higher than their traditional savings accounts. By tapping into the rising influence of gamification, we wanted to activate a new audience towards finance and bring about a positive change in their financial habits, particularly the young millennials of India.

Being part of the 2021 Entrepreneur First (EF) cohort provided us with invaluable guidance, helping us gain a deeper understanding of our market and customers while avoiding early mistakes. We quickly showcased growth and validation of our model. EF was our first supporter and accepted us into their global bridge fund program, granting us access to crucial resources that proved immensely beneficial.

A few months ago, we announced our $4M funding round led by New York-based Courtside Ventures which also saw follow-up participation from EF, Y-Combinator and investments from many other renowned investors such as Kunal Shah, Lalit Keshre and many more. This investment has given us the resources to expand our team, strengthen our product offerings, and accelerate our growth trajectory.

2. What kind of challenges did you face along the way?

Ans. What initially posed as a challenge for us, the COVID-19 pandemic became an opportunity to expand our services and reach a wider audience. We were initially apprehensive about launching Fello during the Covid-induced lockdown. However, it turned out to be a blessing in disguise as more people started to focus on investments and had the opportunity to save money. This shift in mindset led to a surge in demand for investment options, and Fello was well-positioned to capitalize on this trend. Consequently, we experienced a remarkable growth trajectory during this period.

As a startup in the finance industry, building trust and credibility was indeed a challenge. However, we focused on providing a user-friendly and transparent platform, which helped us earn the trust of our customers. Overall, our experience during the pandemic has been one of growth and resilience.

Another challenge was to make finance fun, simple, and rewarding for our target audience, which was early salaried individuals. We had to create a product that was easy to use and understandable, which was a significant challenge in itself. However, we tackled this challenge by designing our app to have a gamified experience, which makes learning about finance fun and accessible for our users.

3. What role has the Entrepreneur First cohort played in your growth?

Ans. Participating in the EF program alongside a cohort of talented and like-minded individuals accelerated our ideation process. We propelled each other towards greater success, learning from one another’s challenges and experiences. Engaging in cohort learning with exceptional peers deepened our understanding of the market, enabling us to identify the problems our potential customers faced and design a product that addressed their needs. Importantly, we were able to pair up and form the right founding team at the EF program, which was critical to our success.

Furthermore, EF provided us with a nurturing environment that offered consistent mentorship and feedback, aiding us in rectifying early mistakes. We also received access to a global network of investors, mentors, and entrepreneurs, which proved invaluable to our journey. It opened doors to opportunities that would have otherwise been inaccessible, fostering the growth of our business.

4. Describe how useful the handholding by EF has been in your successful launch?

Ans. EF’s support has played a vital role in our startup journey. The program offered a structured approach to building a successful company while mitigating startup risks. Through the program, we gained early mentorship, validation, and initial capital.

EF’s network of seasoned entrepreneurs provided us invaluable mentorship, and guided us by sharing their firsthand experiences and helping us navigate the challenges we faced. Additionally, the program provided access to a global network of investors and entrepreneurs, facilitating capital raising and business growth.

In summary, EF’s guidance enabled us to establish a robust foundation for our startup, attracting the right customers and investors to achieve our goals.

5. What is the growth trajectory you have drawn for Fello?

Ans. By mid-2023, Fello aims to onboard over 5 Million users and attract our north-star AUMs with a focus on ARRs. To achieve this, we will be deploying its go-to-market strategies across online and offline channels which we have been experimenting with for the last few months. In order to achieve this, Fello will be launching new assets, new fintech features, etc.

6. What is your vision for Fello and what are your long-term goals?

Ans. The long-term vision for Fello is to make banking fun and rewarding for young Indians. We hope to launch a suite of Banking products right from saving, payments, credit, insurance, etc. in a gamified rewarding experience that will make banking easy, fun, and rewarding for the target audience. Our first step to achieve this is through our savings first app through which we are aiming to make savings fun and rewarding which will set the path for our long-term goal!

7. What is your advice to young entrepreneurs looking forward to start-ups?

Ans. Our advice to young entrepreneurs is to start by focusing on the problem you are trying to solve, rather than the solution you are trying to build. It’s essential to have a deep understanding of your customers, their pain points, and their needs before you start developing a product or service.

In addition, I would advise young entrepreneurs to focus on building an unfair advantage in a specific skill or domain. This could be anything from having deep technical expertise in a particular field to having a unique perspective or approach to solving a problem.

It’s also important to have a bias towards action and to be willing to experiment and iterate quickly. Many startups fail because they spend too much time planning and not enough time executing. You will never feel 100% ready, but it’s essential to take action and start learning from your mistakes as early as possible.

Finally, I would advise young entrepreneurs to maintain relentless optimism and to persevere through the challenges and setbacks that are inevitable in any startup journey. It’s important to stay focused on your vision and to keep working towards your goals, even when things get tough.

8. What are the common challenges the start-ups face today?

Ans. Startups face a wide range of challenges, from fundraising and talent acquisition to product development and customer acquisition. Some of the most common challenges include:

1. Fundraising: Access to capital is a crucial factor in the success of any startup, but it can be difficult to secure funding in a competitive market, especially for early-stage startups with unproven business models.
2. Talent acquisition: Hiring and retaining top talent is a challenge for many startups, especially in industries where there is a shortage of skilled workers.
3. Product development: Building a great product that meets the needs of customers can be challenging, especially if the startup is entering a crowded market or trying to disrupt an established industry.
4. Customer acquisition: Attracting and retaining customers is a major challenge for startups, especially in industries with high customer acquisition costs or where customers are slow to adopt new technologies.
5. Regulatory compliance: Startups must navigate a complex web of regulations and legal requirements, which can be time-consuming and expensive.
6. Competition: Startups face competition from established players as well as other startups, which can make it difficult to stand out in a crowded market.
7. Economic uncertainty: Economic downturns or other external factors can impact startups, especially those that are reliant on external funding or that operate in volatile industries.

Fello’s journey is a testament to the power of entrepreneurship and innovation in solving real-world problems. With the support of programs like Entrepreneur First, startups like Fello can access the resources, mentorship, and funding needed to build strong foundations and achieve their goals. While Fello’s journey has just begun, its vision for a more financially literate India has the potential to make a significant impact on the lives of millions of people.