Zaggle eyes increasing its corporate client base to 10K

Mumbai: Zaggle, a firm which operates in the overall spend management space, is looking at increasing its corporate client base to 10,000 in the country over next few years.

Currently, it has got 4,500 such clients in its fold. The company aggregates the spends of corporates. Also, it gives corporates a digitized solution to their overall spend management. That's at a very high level in terms of what Zaggle does and within the spend management space, it has got multiple solutions. To elaborate it, Zaggle caters to the expense management towards employees, to solutions for channel incentive, reward in management, to employee rewards and recognition, to tax benefits. So, a lot of different solutions in the overall spend management space.

Talking to Bizz Buzz, Arundhoti Banerjee, chief operating officer, Zaggle, says, "We have captured a lot of market cases in the overall spend management space. We have close to 4500 clients, corporate clients in India."

Overall, the entire set of corporates in India, comprise close to 30,000. These are the corporates which have more than 250 employees or more under their fold. We are, she said, still in the process of carving out our overall, you know annual projections and the five year plan per say. But in terms of the market, this is the total market that we have to cater to and out of 30,000, I would say at least 10,000 is something that we would love to get to.

In terms of gross transaction volume, the company at present is close to Rs 12,000 crore in the market today. So far the company has been primarily working in the prepaid card. But going ahead, what we are planning to look at is kind of get into the overall spend management space in a much bigger way by also doing software plus credit cards. So far it is doing only doing the employee side of spend management in the space, but we are primarily looking at getting into the entire you know accounts payable space too. So that's where that is a very large, she said.

She said that employee benefits, reimbursements, travel. All the expenses is something that we do at the moment. Of late, the company has partnered with a firm called CASHe to provide small ticket lending to these employee base, right.

So we are able to do micro loans, short term loans to the employee base. Plus we're coming up with more interesting partnerships in the future where we can directly provide these Fintech products to the end customers, she said.

Covid obviously has been the biggest push in the recent times. So it's a very large spend management space overall. It's almost like a $1 trillion market in India alone when compared to the US ($9 trillion) and Europe ($6 trillion). According to Banerjee, "So we have processed around $3 billion in terms of volume. But overall, if you look at it, it's a really, really large space." Interestingly, Zaggle is the only player which has an overall holistic integrated solution. Every other player that is there in the market captures only one particular case.

For example, Sodexo, would only do employee tax benefits. Xoxoday will only do employee rewards and recognition. If you look at say Happay, they will only do employee expense management. Then if you look at Pei-fu-Hsieh, will only do channel reward and recognition.

"So the overall space, if I look at one player that provides an integrated solution that would be Zaggle," she said. If one looks at large players in the USA and Europe in this space like Brex and Ramp or Pleo, they have been growing very rapidly and that will give you some indicator as to how large the space could be from an Indian perspective and the fact that there is not really any other player apart from Zaggle which is capturing this space so beautifully and so holistically.

At present, Zaggle is only present in India at the moment. "But we're very seriously looking at global expansion and we are currently in the process of looking at, you know, short listing the countries that we would go to from India.