Just a day after investment, Zeta merges employee benefits business with Sodexo BRS India
Employee benefits solution provider, Sodexo Benefits and Rewards India (BRS India) on Thursday said it is merging with Zeta's corporate and meal benefits business, subject to regulatory approvals.
Post the merger, Bengaluru-based fintech firm Zeta is expected to hold a minority stake in Sodexo BRS India.
This merger deal comes just days after Sodexo invested an undisclosed amount in Zeta, valuing the startup at $300 million.
According to a statement released to the media, the latest move will bring together Sodexo’s domain expertise, proprietary merchant network, and Zeta’s advanced technology capabilities creating a stronger business platform that will offer new-age solutions in the employee benefits space to corporates across India.
Speaking on the merger, Anish Sarkar, Chief Executive Officer, Sodexo BRS India, said,
“With this merger, we aim to grow this market manifold in the coming years. The same applies to our merchant partners, wherein we will continue to accompany them in the development of their businesses and contribute to the ‘Digital India’ programme.”
Zeta first partnered with Sodexo Benefits and Rewards India in May 2017, to jointly offer a range of integrated employee benefits to corporate clients.
Sebastien Godet, ASIA President, Sodexo Benefits and Rewards Services, added,
“Sodexo started to partner with ZETA in India two years ago, and we are very happy with the results of our common work here. It has brought value to all our stakeholders, clients, consumers, and merchants. We have already started to work together outside India, and we are happy to expand and strengthen our partnership with Zeta.”
According to Sodexo, it became a 100 percent digital employee benefits company in February 2018, and has leveraged Zeta’s technology platform to launch a complete suite of B2B solutions.
Bhavin Turakhia, Co-founder and CEO, Zeta, said,
“Our technology has already brought about a revolutionary change in the employee benefits space. With the merger and a deeper partnership with Sodexo, we are confident we will be able to offer the best experience to all our customers. Our platform enables creation of tailor-made consumer experiences, and can scale up to billions of transactions per day. Zeta’s technology is deeply integrated with Sodexo, and the merger will enable both teams to work even more closely to develop innovative solutions.”
Currently, Sodexo India and Zeta businesses serve close to 14,000 clients.
Sodexo further claims that it reaches out to over three million daily consumers in India across 1,700+ cities nationally, including Tier III and Tier IV cities, and has over 100,000 unique points of acceptance.
(Edited by Megha Reddy)