Story #5: Omair Ansari's cap table story..

Key Capital sat down with Omair Ansari , CEO and Co-founder of Abhi (YC S21) ; one of the region's largest EWA players as he discusses the journey of scaling his business

1. How did you build your cap table? Any strategies on rounds, type of investors, etc

Given we are a fintech business it was important to us that we have fintech focused investors that had Emerging Market experience that led the charge. We also were launching in Pakistan first, so it was important to have a local fund to be part of the cap table to 1) support the local VC landscape and 2) bring legitimacy/vested LP support for the business in that jurisdiction. As we went to new geographies we repeated this methodology. Emerging markets bring their own set of worries/challenges that only those that have been through the journey understand.?

2. Looking back, what would you have done differently??

We wouldn't change much as we haven't faced many issues, but we do have a busy cap table, so consolidation under a few entities would have been easier. From our side, we could have spent more time with the investors, but we were laser focused on execution.?

3. What worked well on your cap table?

Having investors that are aligned with the vision of the company and those that had the right experience to guide us where we didn't have expertise. There are ups and downs in the company building process and having patient/experienced but blunt investors has helped us through the rough times and kept us grounded during the good times too. Having ESOP from the start also has helped with keeping and attracting good talent.?

4. Any Advice to founders on managing their cap table?

Have ESOP from the start to use for internal and external members of the team. Have clear limits on ownership levels that would be needed to get approvals executed. Be engaged as much as possible, especially one on one, so that everyone understands the journey and the company vision.?

5. Please tell us the importance of debt / securitization to your cap table management and equity story?

As a lending fintech debt securitization is extremely important for equity investors, given equity is an inefficient way to grow balance sheet for lending. In the long term for equity investors, ROE’s will only improve with leverage being added on and then off balance sheet. Furthermore, it shows the ability for the company to grow away from further equity funding.?