Mumbai-based expense management startup Zaggle has acquired Hyderabad-based mobile payment solutions platform Click&Pay in a cash and stock deal.
After the acquisition, the 25-member Click&Pay team will be joining the over 150-member Zaggle team.
Synergy Between Zaggle And Click&Pay
Launched in 2011 by Phani N. Raj, Zaggle Prepaid acts as a one-stop shop for corporates for all their Prepaid gifting needs. It basically connects consumer and corporate spends to merchants through tech platforms like Employee Perk System, reward and recognition programme, channel incentive and online cashback.
Since its launch, it has grown to six offices across India, with 1000+ corporate clients, 1500+ merchant relationships, over six lakhs gift cards in the market, and over 2,50,000 downloads on the Zaggle App. It currently works with clients such as Infosys, Yahoo!, Oracle, Airtel, Tata Teleservices, Vodafone, Edelweiss Tokio, Jotun, Legrand, Schneider Electric etc.
On the other hand, Click&Pay was founded in 2015 by Kalyan Karteek. It provides mobile-based secure and cashless payment solutions. It helps users to make payments in a smart way by providing them to find the best offers in their locality and cashbacks on successful transactions. Users can also send/request money to their pals.
Click&Pay also allows merchants to increase profit margins by identifying customers spending patterns, analyse buying behavior and transactions, and stimulate spending activation.
With this acquisition, Zaggle is aiming to build a world-class expense management platform and create a unique value proposition for its customers, as stated by the company in a media statement.
Zaggle’s CEO Avinash Godkhindi said, “The acquisition would help Zaggle to continue and execute the growth strategies and extend leadership in expense management by mainly focusing on the basic local needs of each and every market it serves.”
Other Deals In The B2B Expense Management Space
Apart from Zaggle, a few other notable players in the enterprise expense management and cashback deals space are Bhavin Turakhia-led Zeta, ItzCash-backed Finly, Numberz.in, Fyle Technologies, Happay, Chargebee, and Niyo Solutions among others.
Also, a few indirect players making their mark in the industry are Little and Nearbuy (acquired by Paytm), mydala, CouponDunia and CashKaro, among others.
In a recent email interaction with Inc42, a Happay spokesperson claimed that from a GTV of $60.5 Mn (INR 400 Cr), it has grown it over six times to more than INR $378 Mn (INR 2500 Cr) in the last few years. Also, it has seen an annual growth rate of 200%, fuelled by increasing customer growth and is well positioned to acquire over 10,000 small, medium and large enterprises by 2019.
Backed by Kae Capital and Khosla Impact, Numberz was also reported to seek more funds in July 2017.
Recently, in April 2017, Fyle Technologies raised $1.1 Mn from existing investors Pravega Ventures and Beenext. Also, in March this year, cloud billing solutions provider Chargebee secured $18 Mn in a Series C investment round led by New York-based Insight Venture Partners.
[The development was reported by The Hindu.]