Zaggle forays into neobanking space for SME segment
Zaggle, a fintech company, has launched a neobanking initiative focused on the SME segment.
This neobank foray is through Zaggle's group company, ZikZuk. The first product that is being launched under this initiative is the Founders Card – a curated credit card for SME owners to take care of their business expenses.
The Founders Card is a single payment instrument which can be used to optimise working capital, and digitally manage all the expenses of a SME/Startup.
According to ZikZuk, the credit card is aimed at solving the challenges faced by SMEs, especially in accessing working capital and other liquidity issues.
Besides the credit card, other initiatives from ZikZuk for SMEs will include a complete financial operating system called Business Finance Manager and Multibank Account Aggregation.
Zaggle Founder Raj N said,
“This credit facility offered by ZikZuk will enable SMEs to streamline their working capital cashflows and is in sync with the global developments and offerings in this space.”
Zaggle is aiming to generate transactions worth Rs 250 crore through this neobank in the first year of operation. It aims to reach out to one lakh SMEs in the next two to three years.
The company will begin with by targeting traders and services businesses of SMEs. It will later move onto the manufacturers.
Zaggle currently has partnership with three financial institutions - Yes Bank, RBL Bank and IndusInd Bank. It aims to sign up multiple partners for its neobanking initiative.
Founded in 2011, Zaggle has over 200 employees with presence in about 10+ cities. The various products in its portfolio include expense management & employee reimbursements and employee rewards & recognition. These are under the brand names of Zaggle Propel and Zaggle Save.
Zaggle has been funded by eYantra, Ventureast and Argonaut Ventures.