- Sokin launched over the summer and already has over 60,000 users
- The app charges users £9.99 per month for unlimited money transfers
- Rio Ferdinand has invested in start-ups and is taking an active role
- Sokin has also partnered with Premier League teams as its global payments partner.
A start-up backed by Rio Ferdinand is gaining traction as it pledges to shake up the money transfer market by making it cheaper and easier to send money overseas.
Sokin got off to a bang earlier this year, announcing investments from the former Manchester United and England defender and has an ambitious goal of becoming a £100bn company within five years.
After two years of planning, Sokin is now out of stealth mode and looking to disrupt an industry that has been dominated by Wise — formerly TransferWise — and challenger banks Monzo and Revolut.
This Money spoke to founder Vrun Modgil about how it is battling established players and their involvement with Rio.
Sokin has an investment from former footballer Rio Ferdinand
Its USP? Unlimited foreign transfers with monthly fees
Sokin’s global currency account charges £9.99 per month for a debit card, along with unlimited overseas transfers to over 200 countries in 38 currencies.
Its basic account comes with a free IBAN account and payment card and allows users to receive free funds.
By comparison, money transfer giant Wise, which recently listed in London, charges £3.69 per transfer. Its ‘fast and easy’ transfer costs £6.67.
‘We don’t pay for every track we download or every movie we stream, yet we expect to accept unspecified and variable costs when we are sending or paying money. Is. Why? That has to change,’ says founder and chief executive Wron Modgil, who compares subscriptions to Spotify.
For Moudgil, who trained as an accountant before working at the borough and the Islamic bank BLME, the project is personal.
He came up with the idea for Sokin, meaning money transfer in Japanese, after avoiding duplication costs and paperwork when his own father had to send money back to India.
The issue resonated with Ferdinand, who met Modgil through a mutual friend and gave the six-figure sum to Sokin.
The former footballer said, ‘I come from a background where you have always seen and heard people transfer money and you have heard the hardships and tensions surrounding it not only on their behalf but also on the people receiving the money. Said it’s money.
Ferdinand has Sokin plugged in on his social media profile
Sokin Score Football Partnership
For football fans, Sokin may already be a familiar name. Ferdinand’s attachment to the brand has undoubtedly helped in brand recognition.
Sokin is a sponsor of his YouTube channel—which has just under 800,000 subscribers—and he frequently posts about them on Instagram and Twitter.
With little traditional marketing, Ferdinand’s own advertising and his connections in the football industry appear to be the main drivers behind its development.
It is no hidden fact that the Premier League is one of the most watched sports in the world.
Moudgil says, “I don’t claim to be a marketing expert, but I know the numbers and when people are spending as much to get conversions, I have to think of a way or a way that we can do that.”
The Sockin team has doubled down on the football connection: they are now the official global payment partner for Arsenal, Everton, Fulham and AS Monaco.
Modgil claims it is a mutually beneficial partnership: ‘It works to enhance the Sokin product but at the same time I am helping the club reach their fans.
‘A fan in Africa or Singapore can now buy shirts directly using our global currency account.’
‘We’re not messing’
Football connections can be a nice bonus for the clubs but it is clear that the Sokin Party benefits the most.
Since its summer launch, Sokin now has over 60,000 users – both paid and free – and has already crossed the £100,000 revenue mark in that time.
This rapid growth is no small feat.
‘I think we should be over 50,000′ [paid subscribers] by Christmas. A big part of this is what sets us apart from others is the rate and speed at which we expand into new markets,’ he says.
‘By the end of this year we will have a larger footprint of issuance accounts than Revolut and Wise. It’s worth planning for two years. We are not messing around when we say we are launching.
As a result, Ferdinand seems happy with his investment.
He may not be reaping dividends just yet, but he feels right in his decision to invest in Sokin.
Telling consumers how simple, effective and transparent it is is a refreshing addition to this market.
‘One of the people working on my YouTube channel uses it, sends money to Africa they love.
‘I also think the speed at which it’s been rolled out in different countries – it’s faster than anything I’ve seen in this space. It really solidified my reason for joining and investing.
He adds: ‘I love being involved, I love being part of a team. Working like this is a new experience for all of us and I am really enjoying it.
Sokin users are charged £9.99 for unlimited money transfers in over 200 countries
VC is knocking
Sokin’s next challenge will be to convert its free users to paid ones.
Its typical users are typically millennials and Gen Zs, says Modgil, who this summer took advantage of the debit card feature, which is backed by MasterCard and available in 80 countries, and is subject to pending, local and regulatory requirements. .
Like Monzo and Revolut, Sokin’s card can be used for day-to-day activities as well as travel…