Foreign exchange and domestic remittance player Weizmann Forex Limited(WFL) is set to acquire its unit Weizmann Impex Enterprises Ltd (WISE), which owns JaldiCash.
The acquisition will be completed via Scheme of Amalgamation on 1 April 2018.
WISE has been authorised by the Reserve Bank of India to issue and operate semi-closed prepaid payment instruments (PPI) in India. JaldiCash offers integrated payments and solutions B2B business model to its customers across 29 states in the country.
Karthikeyan, Managing Director, Weizmann Forex Limited said, “We are excited to announce this acquisition which provides substantial synergies with our existing international remittances operations. The platform enables us to offer multiple revenue streams to our existing retailer/agent network thereby increasing distribution stickiness for our core products.”
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JaldiCash helps business partners distribute multiple services which include domestic money transfer, utility bill payments, Indo-Nepal remittances, online airline/railway ticketing and two-wheeler insurance.
Also, the company is planning to expand its portfolio and launch P2P lending, working capital loan assistance for retailers, hotel bookings and some other services.
Karthikeyan further said that the financial product offerings of JaldiCash will help Weizmann Forex expand its distribution network. He also said that services like air ticketing are synergistic for growing their forex business as well.
The country has been witnessing growth in its digital penetration. Recently, a report by Credit Suisse predicted India’s digital payments industry to grow five-fold from its present $200 Bn to $1 Tn by 2023. It also suggested that the value of digital payments will likely jump from the current 10% to over 25% by 2023.
A Google-BCG report had suggested that the digital spending by consumers is expected to grow nearly 2.5 times to $100 Bn by 2020.
Recently, data released by the Reserve Bank of India (RBI) showed that digital transactions in the country reached a record high of 1.11 Bn in January 2018, up by 4.73% from the 1.06 Bn it reached in December 2017.
At present, Weizmann Forex has already set its foothold in the market, and it will become clear n the future how the companies mutually benefit each other with WFL’s decision to acquire JaldiCash.