In this era of competitiveness, more often than not, being fast is an advantage for any organization; and in some cases, it is a necessity. To keep up with the market in the present scenario, organizations need to stay updated with the latest technology. With global financial markets becoming increasingly competitive, electronic trading strategies are only as good as their underlying data and infrastructure. To help the organizations keep up with the pace of technology, Celerix has innovated high performance products that can help its clients achieve significant gains on the basis of their bottom line – strategic technology initiative and tactical resolution to a problem.
Celerix: The Company
Celerix Technologies, based out in India’s Silicon Valley, Bangalore, is a financial technology product and services company that focuses on FPGA-based hardware accelerated technologies and high performance trading and portfolio management systems. Be it a strategic technology initiative or tactical resolution to a problem; the company has solutions for every problem.
Celerix serves as a technology outsourcing partner for businesses into buying and selling, investment banks, exchange operators, brokerages, hedge funds and other players in the investment community in building performance critical applications.
Celerix Technologies was founded by professionals with wealth of experience in building and managing technology infrastructure for some of the major Wall Street firms serving key markets globally.
What it offers?
The company offers its high performance products for global financial markets. One of its products is Impetus, for FPGA-based ultra-low latency trading and market data processing. Impetus can seamlessly integrate with the client’s system, where the trading strategy would reside. It has a subscription-based pricing model. Along with this, Celerix has developed two more products Propero Messaging Platform (PMP) and PROPERO to serve its client with the current requirements.
Celerix consultants have years of hands-on experience providing high performance technology solutions to the global financial markets, covering wide spectrum of the trading gamut and a variety of asset classes. Celerix provides professional services in the areas of enterprise architecture, performance engineering, capacity planning, integration of COTS (Commercial Off-The-Shelf) FPGA solutions etc.
The founders at Celerix have the mix of experience and research qualifications to build the product to help their clients in the best possible manner. The team includes, Nagesh Kodavali, Director, Business Operations, Nithish Rao, Director, Business Development, Kusuma Garapati, Software Development, and Praveen, Director, Hardware Development.
Nagesh is an MBA from University of Iowa and has over 22 years of experience in product development and program management in India and the US. He is a graduate from NIT, Surathkal from 1993 batch.
Nithish, an alumnus of NIT, Surathkal, has a background in financial technology and fund management and was instrumental in setting up a SEBI AIF Category-III Hedge Fund before joining Celerix.
Kusuma has been into BFSI IT sector for over a decade and prior to Celerix, she worked at Wells Fargo, US and was instrumental in architecting software products to support their business operations.
Praveen comes with a mix of sound research knowledge, and industry experience on design and development of FPGA-based systems. Prior to joining Celerix, Praveen worked with Bangalore based company, Corel Technologies.
How it was formed?
After trading in US capital markets for a decade, Nagesh realized that retail traders were at a great disadvantage against machine trading. He researched about technologies which could enable speed trading. Then he found that hardware level programming or hardware acceleration combined with high end software systems can provide the solution. Later he moved back to India and teamed up with Nithish, Kusuma and Praveen and set up an R&D team to research on high performance technologies.
Over a span of two years, they researched and came up with an industry disruptive trading system which processes at ultra-low latency speed at the pace of Nano seconds. It is as flexibility as a software system with respect to change management. This is how their idea took shape and they formed their company in 2013 after thorough research and development. Their example can be a message to the budding entrepreneurs that if they want to survive for a long time, they must think and work on the right idea at the beginning itself.
Founded in 2013 by NIT Surathkal alumni Nagesh Kodavali and Nithish Rao, the company has recently raised $400K,000 in seed funding from Bitkemy Ventures. The startup intends to use the funds raised for expanding the team. Celerix is in talks with other investors too to raise more funds. With further flow of funds, the company wants to strengthen its team and also form a sales office in Mumbai. The investment by Bitkemy is the first external round of funding raised by the startup. Prior to this, it was bootstrapped.
Working towards success
With an aim to make machines work smarter and faster, the company is on its way to success. So far, the startup has been quite successful in building its team and expansion and will very shortly launch its product. Their performance engineering team is working with BSE (Bombay Stock Exchange) to enhance exchange processing.
Celerix aims to become a one-stop destination for all real time ultra-low latency processing requirements in the targeted markets. And to do this, it is all set to scale its target market by focusing on international capital markets and other domains after establishing itself in the Indian capital markets.
Market and Competition
Celerix estimates the market size of around $400 million, based on the analysis of technology spending by brokerages and stock exchanges.
A report by Business Standard narrates that, “Nasscom predicts that the Indian fin-tech software market is estimated to cross $2 billion by 2020, representing a 2x growth. In total there are around 200 fin-tech start-ups, almost 60 per cent are focused on the payment processing segment.”
“Nasscom along with its 10,000 Start-up initiative has identified four focused area for start-ups and one of them is Fin-tech. Other than creating a platform that will showcase the fin-tech talent in India to the global banking community we also want to help start-ups spot the white spaces that they can target like block chain, wallets etc.,” said Sangeeta Gupta, Sr. VP, Nasscom.
Additionally, the global fin-tech industry is a $45 billion opportunity by 2020 growing at a compounded annual growth rate of 7.1 per cent. Importantly, the Indian fin-tech industry too is expected to grow by 1.7x by 2020. At present, the total Indian fin-tech market is about $8 billion with fin-tech software market at $1.2 billion.
Top verticals that the Indian fin-tech start-ups are targeting include BFSI and next-gen commerce. Transaction gateways and platforms, mobile banking and ATM & POS are the emerging horizontals.
With emerging opportunities in Fin-tech sector, many budding entrepreneurs are keen on entering the same with their innovative ideas. Therefore, the competition is very high in the industry and it is very difficult for startups to survive in the absence of sufficient innovative solutions to serve their clients. Celerix is positive about its long term success on the basis of its strength in technology, in-depth domain knowledge, and the right mix of required expertise, and willingness to face its competitors and challenges in the future.