India-based fintech startup Zaggle has announced its partnership with Visa to launch innovative payment solutions for SMEs and startups.
In a statement issued, Zaggle said, “This new partnership will concentrate on lending a helping hand to SMEs and start-ups to improve productivity and reduce costs along with focusing on easier and faster credit through a card which would have both inbuilt forex and prepaid.”
“As part of this comprehensive partnership, Zaggle will leverage Visa’s expertise in the payments space to co-create and build new solutions for SMEs. The company will also be able to acquire new customers and merchants and get Visa’s support for newer technological innovations and ideas,” Zaggle added.
Speaking on the partnership, Raj N. Phani, Founder of Zaggle said, “We are happy to partner with Visa for an all-encompassing solution. This partnership will help us expand our services and client base. In addition to this, our collaboration focuses on improving the expense management system of SMEs who are in dire need of a payment instrument that will help them optimize their working capital and improve cash flows for all their business expenses. The platform adds over 600 SMEs every month.”
“SMEs remain the backbone of our economy. Now more than ever before, it has become more important for SMEs to assess how to best digitize their businesses. We are glad to partner with Zaggle to produce solutions that empower and assist SMEs and startups in managing working capital and improving productivity by digitizing payments for them,” Arvind Ronta, Head of Products, India & South Asia, Visa said.
The company in its statement said, “One of the innovations that Zaggle is planning to launch is ‘Founder Card’ a credit card service for startup founders and CEOs of SMEs in the next 45-60 days.”
Briefing on Founders Card, the company in its statement said, “Zaggle’s Founders Card is a first-of-its-kind Single payment instrument which can be used to Optimize Working capital and Digitally manage all the expenses of SMEs and Startup. The card will be available in different form factors such as virtual card, physical card, e-card, on mobile, etc that will be issued to founders. The credit card will be available in the form of domestic pre-paid, forex pre-paid, and corporate credit and various other benefits that matter to the Founders of startup companies.”
“The features of the card include managing business expenses of CEOs and senior management, managing their international travel expenses as well as petty cash management like fuel, meal expenses, etc. More so, the Founders card will have other benefits such as discounts on hotels, tickets, cashback incentives, lounge access, and so on. Zaggle also has a Strong Partner Network with companies such as WeWork, MakemyTrip, AWS, etc to bring out differentiated value propositions for Startups and SMEs focused products,” company said.
Adding to the statement, Avinash Godkhindi, Managing Director & CEO of Zaggle said, “As we know and understand, SMEs or small businesses face difficulties in investing in technology that helps them reduce costs and work efficiently. There is a need as well as huge demand to manage their expenses digitally. With the launch of the Founders Card, it will become easier for founders of SMEs to manage their expenses and working capital better. The card is still in its planning stage and will be launched in partnership with Visa to create and build a robust platform for SMEs. With the launch of the Founders Card, this will allow us to serve 1 Lakh SMEs in the next three years and process more than 14,000 Cr INR of transaction volume annually.”
“Since we will be partnering with banks, this will also help in further strengthening our relationship with SMEs to cross-sell and up-sell services such as current accounts, business loans, FDs, short term working capital and salary accounts,” Avinash said.