Zaggle enters the Neo-Banking space through its group company, ZikZuk
By Leandra Monteiro
Zaggle, a FinTech company, today announced its entry into the neo-banking space. The company has launched the neo-banking initiative through its group company, ZikZuk with the objective of addressing major challenges faced by SMEs.
The first product that is being launched is the Founders Card, a credit card for SME owners under its group company ZikZuk. It is aiming to clock in a revenue of INR 2500 million in the first one year of business. As a part of its growth strategy, the company aims to reach out to one lakh SME’s in the next 2 – 3 years.
The three primary products that will be a part of this initiative to start with include:
- Founders Card
- Business Finance Manager
- Multibank Account Aggregation
Commenting on the development, 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 to streamline their working capital cashflows and is in sync with global developments and offerings in this space.”
Speaking about the business opportunity in the neo-banking space, Raj further added, “The market for this offering is very attractive in terms of size and spread with experienced players understanding the SME space operating into it.” The company will begin servicing traders and services businesses through these offerings and will gradually move to manufacturers, while geographically it will first commence with metros and then move on to other towns and cities Pan-India.”
He added, “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.”
ZikZuk multibank account aggregation module will help SME owners and finance teams to use the platform to access multiple bank accounts and perform banking transactions instead of hopping to multiple bank portals.