Itzcash MD Naveen Surya said this is the first among the several investments and partnerships the company is looking to make in the fintech space this year. Finly, which currently has a web and mobile platform, will use ItzCash’s prepaid card for expense management and disbursement.
Surya said the deal is part equity investment and part business partnership, but did not disclose the amount. “The idea is to get ready for the next phase of financial sevices convergence. This year we are looking at multiple partnerships which will include investments, joint ventures especially in blockchain technology, and acquisitions and investments in areas such as credit and insurance,” said Surya. The new funding is from internal accruals, Surya said, adding that the company will become profitable this financial year.
The digital payments company, which has so far raised about $51million from investors such as Matrix Partners, Intel Capital and Lightspeed Venture Partners, is also likely to consider IPO options soon. ItzCash said expense management for corporates is approximately a $25-30-billion opportunity in India, and is increasingly moving to digital platforms. Several fintech firms are looking at corporate expense management either as a core area of business or an added service.
Digital payment firm Zeta recently told ET that it plans to introduce an expense management system for corporates this quarter. Other players in the enterprise finance space are Happay and ChargeBee.