Three bankers and marketers who spent decades in telecom, insurance and retail banking decided to serve the customers that banks overlook: the kirana owner, the chemist and the neighbourhood trader.
In this episode of The Builders Club Startup Founders Podcast, Chqbook co-founders Vipul Sharma, Rajat Kumar and Mohit Goel explain how they are building fintech for MSMEs, from a 10-minute digital current account to lending and insurance.
What is fintech for MSMEs? The Chqbook neobank thesis
The founders describe Chqbook as a neobank for India’s small business owners, a segment of roughly 64 million shopkeepers, traders and sole proprietors. In their view this group is the hanging middle: too small for banks to chase, yet a large share of GDP.
Rather than launching one feature, they built a full stack of a digital current account, lending and insurance, with the app available in seven languages. The current account is the entry product, and the transaction history it builds opens the door to credit.
- Serve the overlooked segment. Banks chase salaried customers, while small shop owners get little attention.
- Start with the account. A current account creates a ledger that lenders can use to extend credit.
- Sales experience matters. The founders argue distribution is as important as product.
- Trust follows product performance. An app that simply works earns customer confidence.
Who are the Chqbook founders and how did they meet?
Vipul started his career in life insurance, selling policies at suburban railway stations, then moved through retail banking at several banks and a stint at a small company before founding Chqbook. He says he deliberately saved about a thousand days of living expenses before leaving salaried life.
Rajat built his career in banking sales and product, rising to state and retail head roles. A trip to China convinced him India would see similar growth. Mohit spent about 20 years in telecom, asset management and insurance, and joined in 2019, roughly two years into the journey.
- Vipul Sharma: insurance and retail banking background.
- Rajat Kumar: banking sales and product leadership.
- Mohit Goel: telecom, asset management and insurance marketing.
How important is sales experience for a startup founder?
All three argue that a great product is useless if no one sees it. Vipul says second-time founders consistently stress distribution as much as product.
Mohit adds that sales experience keeps a founder close to the customer and helps validate a product proposition. Rajat says it also teaches caution, meaning measured risk without being conservative, which matters when you operate under regulators such as the RBI.
- Build something people genuinely need.
- Learn how to put it in front of them.
- Stay close to customers through frontline sales.
- Take measured risks, especially in regulated markets.
Why build a full neobank instead of a single fintech product?
Vipul explains that the idea began as a financial services provider offering lending and insurance, and evolved into a neobank after the other two joined. The aim was a holistic offering for sole proprietors with modest turnover, a market the founders see as large but poorly served.
A current account works like a ledger, and that ledger is what lets lenders offer credit. The account also helps owners separate business and personal spending, which is hard with a savings account.
- Digital current account, powered by NSDL Payments Bank, opened in about 10 minutes.
- Lending products for shop upgrades and expansion.
- Insurance covering both the owner’s life and the shop against risks such as fire, flood or burglary.
How do you position a neobank for small business owners?
Mohit points out that India has no separate licence for digital banks, so a neobank here means using technology and financial services experience to simplify products. Chqbook’s pitch is partnership, not promises: it wants to be the banker of choice rather than push every product.
The multilingual app is a core differentiator, since many owners are comfortable in their own language. The founders also share customer examples, such as a grocery owner who used a loan to add a small kitchen and sell meals.
Which marketing channels work for reaching MSME customers?
Mohit says no single channel works for this audience, most of whom have school or early college education. Chqbook relies on a mix of B2B partnerships with large wholesalers, low-cost digital campaigns, and organic referrals.
Vipul adds that in his account the company recovers about twice its acquisition cost in the first month. He gives an example of a customer who found the app through a video made by a happy user, not an ad.
- Partnerships with wholesalers who already reach retailers.
- Cheaper digital channels that convert quickly.
- User-generated content and word of mouth.
- Cross-selling on the app to raise lifetime value.
How important is early funding for a fintech?
Vipul says the company received its institutional funding in February 2020, shortly before the pandemic, which he calls partly luck. He argues financial services is the largest profit pool in the world, so investors are always interested in fintech.
He also notes that a financial services company can become very large without being a monopoly. Angel support before the Series A gave the team room to test products and decide what to bet on.
Further reading and sources
- Chqbook official site
- Neobank on Wikipedia
- Reserve Bank of India on Wikipedia
- Micro, small and medium enterprises on Wikipedia
Frequently asked questions
What is a neobank and how is it different from a traditional bank?
A neobank uses technology to deliver banking services through an app. Mohit Goel notes that India has no separate digital bank licence, so Chqbook partners with a regulated bank and focuses on simpler, faster products for small businesses.
Can a small shop owner open a current account digitally?
According to the founders, Chqbook lets small business owners open a digital current account in about 10 minutes through its app, with no physical paperwork. The app works in seven languages, including English.
Why does a current account help small businesses get loans?
A current account builds a ledger of transactions over time. The founders say this record is what lets lenders assess a business and offer credit, which is why they treat the account as the entry product.
Conclusion
The Chqbook story shows how deep customer knowledge, built through years of frontline sales, can open up a segment that larger institutions ignore.
If you are building for small businesses, start with the product they will actually use daily, make it work in their language, and let lending and insurance follow once trust is earned.
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