Two foreign exchange firms founded by Rajesh Agrawal – who until this week served as London’s Deputy Mayor for Business – have stopped accepting new customers and have shuttered customer accounts as rumours swirl over their futures.
RationalFX, which is headquartered in the Docklands hub, was first established in 2005 and claims to have handled over $12bn in international payments over 50 currencies.
The shuttering of customer accounts means that customers cannot withdraw any funds.
It was founded by Agrawal, who according to Companies House filings stepped away from the company last year.
The firm is now run, according to Companies House filings, by Amir Karmacharya, Paresh Davdra and Jigar Bipinchandra Shah.
It reported net current liabilities of more than £10m in filings for the last financial year.
Today, the website shows a banner stating: “Rational Foreign Exchange are not currently accepting new customers or accepting new funds. We are also not currently able to return customer funds with Rational Foreign Exchange. We will continue to keep customers updated.”
Texts from employees of RationalFX, seen by City A.M., suggest that staff have been let go as of this morning.
Xendpay, another firm founded by Agrawal, has a similar notice on its site today. Again, Agrawal appears to have stepped away last year.
Customers have taken to social media this morning after receiving the news in an email.
Agrawal stepped down as deputy mayor for business this week, having taken the role when Sadiq Khan became mayor in 2016. He stepped down due to being selected as a candidate at the next election for the Labour Party.
Speaking to City A.M., Agrawal said: “It is very sad that these businesses have had to stop trading because of the current climate in this sector.”
He added: “Despite the fact that I stood down as chief executive in 2016, and stepped down as a non-executive director in April 2022, I hope that the management can do everything they can to support customers and staff affected by this decision.”
RationalFX and the FCA have been contacted for comment.