Today, the Indian financial system and investment sector are thriving. Over the past decade, the country has embraced digitalisation and complex technologies to simplify and navigate fund administration with ease. Alternative investment funds (AIFs) are becoming more mainstream, with total investments by AIFs in the country amounting to a whopping R3.99 lakh crore.
Thie Mumbai-based Basiz Fund Services provides administration services for a wide range of AIFs, including hedge funds, private equity and venture capital funds, mutual funds, family offices, insurance portfolios, cryptocurrency funds, and managed accounts. Established 20 years ago, the company was a leap of faith into the unknown for its founders, Aditya Sesh and Sujata Seshadrinathan.
Sesh started his career as a CA in 1991. His wife, Seshadrinathan, is an alumnus of NM College and has a Doctorate in Business Administration from SP Jain School of Global Management with a Dean’s List Merit Scholarship. “She was the first woman to be awarded a doctorate in blockchain adoption in India,” he says. She smiles and elaborates: “It has been a unique and exceptional experience so far. As first movers in our respective fields, we have both had it a little bit more difficult than others. But that never deterred us. Our lives have been intertwined personally and professionally from the very beginning, which we consider to be a big blessing. For us, Basiz is our third child,” says Seshadrinathan.
Hidden gems
In the early 2000s, the couple realised that India’s entrepreneurial landscape had a lot to offer and there were many hidden gems of business opportunities to be found in the country within the fund administration sector. And that is how, in 2004, Basiz Fund Services was established. “But the journey was not all smooth sailing. We faced challenges at every step,” says Seshadrinathan.
Sesh explains: “We conceptualised Basiz because we saw a gap in the Indian market for specialised fund administration services that could meet international standards. At the same time, global fund administration also had gaps to solve, especially in reporting. But it was a highly niche specialisation, with not many people aware of the scope of our offerings. For the first 18 months, we had no clients. But there was no stepping back for us; the journey was already underway, and we were determined to see it through. After relentless efforts, we onboarded the Union Bank of Switzerland in 2006 – our first major client. It was a turning point for us.” Today, Basiz has Fortune 500 global banks and fund administrator clients located all over the world, with branches in Singapore, Bahrain and the US.
Explaining the company’s business model, Shabarish Seshadrinathan, VP at Basiz who also oversees its business development, says: “The scope of our financial services is tailored to support AIFs. We manage fund administration for our clients, such as accounting, financial reporting and investor relations. Our mid-office support services streamline the management and operational processes of funds. For investors based in the US, we offer specialised services to meet regulatory and operational needs, including compliance with the US Tax, Foreign Account Tax Compliance Act (FATCA). This diversified range of services makes us an integrated and preferred platform for marquee investors looking to delve into AIFs.”
Sesh and Shabarish’s financial acumen is complemented by Seshadrinathan’s technological expertise, keeping their skills well-rounded. Sesh explains: “We work as co-promoters within the firm, and she works relentlessly as the director of IT and process.”
Seshadrinathan’s latest technological innovation, Basiz Master Draft, has been patented and is the first of its kind in India. She elaborates on it, explaining: “Basiz Master Draft is an advanced digital tech tool that is designed to assist agreement drafters and reviewers globally. It helps users draft agreements by keeping track of comments from reviewers, provides drafting insights, negotiating tools, and offers a strong repository, which can be customised.”
A critical factor behind the firm’s success has been its foresight. The company has always prioritised domestic self-reliance in the financial sector. Seshadrinathan says: “We began servicing the world long ago. Then, we began looking for Indian clients for the first time before other players did. We are the first fund administrator to be approved to operate in Gujarat International Fin-Tec (GIFT) City.”
The company’s presence in the North East’s Tripura has played a crucial part in its operational expansion, a feat that few domestic players have achieved. Elaborating on its Tripura project, Sesh says: “We have always believed that we need to have a North Eastern chapter in our journey. The people of Tripura deserve and are capable of working with international operations, which is why we signed a crucial MoU with the state government of Tripura in 2022 to inaugurate the state’s first fund administration operation centre.
“We are profitable and have expansion plans in place for the next couple of years. The company’s gross economic value is over Rs.125 crore today, and we aim to keep building on it,” adds Seshadrinathan.
LANCELOT JOSEPH
lancelot.joseph@businessindiagroup.com