Bengaluru-based fintech startup Skydo is leading a quiet revolution in cross-border B2B payments, aiming to make the complex geography of international money movement virtually invisible for exporters. By leveraging local collection accounts and a flat-fee pricing model, the platform is dismantling the costly barriers that have historically stymied small-to-medium enterprises (SMEs) and freelancers looking to scale globally.
The High Cost of Moving Money Across Borders
For decades, international business transactions have relied on the legacy SWIFT network, a correspondent banking system built in the 1970s. This outdated infrastructure forces payments to pass through multiple intermediary banks, with each entity extracting a fee and slowing down the transfer process.
According to the World Bank, the global average cost of sending cross-border remittances remains around 6.2%, far exceeding the United Nations Sustainable Development Goal target of 3%. For business-to-business (B2B) transactions, these costs manifest as hidden foreign exchange (FX) markups, which typically range from 2% to 5% per transaction.
These financial friction points disproportionately impact small businesses and independent professionals in developing markets like India. While multinational corporations negotiate custom, low-cost rates with global banks, smaller exporters have been forced to accept high fees, unpredictable settlement times, and administrative headaches.
Making Payment Infrastructure Invisible
Skydo, co-founded by Srivatsan Sridhar and Movin Jain, seeks to solve this disparity by treating cross-border payments as basic, invisible utility infrastructure. The company’s platform allows businesses to set up local virtual accounts in major markets like the US, UK, Europe, and Canada, enabling them to receive payments via local clearing systems like ACH or SEPA.
“We want to make the geography of a payment disappear,” says Srivatsan Sridhar, CEO of Skydo. Sridhar emphasizes that by localizing the payment collection process, the platform eliminates the need for expensive intermediary banks, reducing transaction processing times from days to hours.
Rather than charging a percentage-based FX markup, Skydo operates on a transparent, flat-fee model. This approach can reduce transaction costs by up to 80% for small businesses, allowing them to retain a larger share of their hard-earned revenues and reinvest in local operations.
Fueling India’s Export Ambitions
The timing of Skydo’s expansion aligns with India’s aggressive push to scale its export economy. The Indian government has set an ambitious target of reaching $2 trillion in total exports by 2030, driven largely by service exports, IT professionals, and MSMEs.
Financial analysts note that achieving this goal requires a modern, digital-first financial architecture. “The democratization of cross-border payments is a critical enabler for micro-exporters,” says Anirudh Singh, a fintech venture partner. “When you lower the transaction barrier, you instantly make local talent and local products more competitive on the global stage.”
Data from Skydo indicates that the platform has already processed millions of dollars in transactions, serving thousands of Indian exporters. The platform’s automated compliance features also simplify the generation of Foreign Inward Remittance Advice (FIRA) documents, a crucial regulatory requirement for Indian businesses that traditionally takes days to procure from legacy banks.
The Evolving Landscape of Global B2B Payments
As digitization accelerates, the global B2B cross-border payment market is projected to reach $56.1 trillion by 2030, according to a report by Allied Market Research. This massive growth is driving intense competition among fintechs, legacy banks, and regional payment networks.
The next frontier in this space will likely involve the integration of real-time payment rails across national borders. Initiatives like the linking of India’s UPI with Singapore’s PayNow and the UAE’s Instant Payment Platform hint at a future where cross-border B2B transactions settle instantly.
Industry observers should watch how regulatory bodies adapt to these rapid technological shifts. As platforms like Skydo continue to abstract the complexities of international banking, the pressure will mount on traditional financial institutions to either modernize their legacy systems or risk losing the lucrative SME segment entirely.
