Zaggle Debuts Neobanking Service For SMBs

Indian FinTech company Zaggle announced an entry into the neobanking space, a press release said Wednesday (May 19).

The company has rolled out a new initiative through ZikZuk, which will intend to look at “major challenges” faced by small to medium-sized businesses (SMBs).

There will be three primary products introduced: the Founders Card, the Business Finance Manager and the Multibank Account Aggregation.

Raj N, founder of Zaggle said, “In order to ensure proper risk management for its portfolio, the company will get directly hooked into the customers accounting system which will enable continuous risk assessment and monitoring. This credit facility offered by ZikZuk will enable SMEs [small to medium-sized enterprises] to streamline their working capital cashflows and is in sync with global developments and offerings in this space.”

Raj also said the company will work with traders and services businesses before expanding to other businesses like manufacturers. Geographically, Zaggle plans to begin conducting business in metros, then move onto other towns and cities Pan-India.

Per the release, Raj’s said, “SME owners are usually busy in growing their sales and business and want to know the entire financial status of their company and manage cash flows as it’s a critical component for the SME business. Our Business Finance Manager acts as a financial command center for SMEs to manage their business through our platform.”

The Founders Card will be introduced first. It is a credit card for small business owners and will be looking to clock a revenue of 2.5 billion Indian rupees (approximately $34.2 million) in the first year of business.

The company, as part of its growth strategy, plans to reach out to one hundred thousand small businesses within the next two or three years.

PYMNTS writes that India’s economy, which is home for $793 billion in sales, which includes around 20 million mom-and-pop businesses. That accounts for roughly 88 percent of the bricks-and-mortar market. Those smaller businesses, called kiranas, have increasingly carried the weight for the economy. That comes as bigger retail outlets have boosted competition for bringing smaller businesses into their supply chains.