Home Education “We want to create a platform for businesses to access financial services from different financial service providers easily”: says Raj N, Founder of Zaggle & ZIKZUK

“We want to create a platform for businesses to access financial services from different financial service providers easily”: says Raj N, Founder of Zaggle & ZIKZUK

Micro, Small and Medium Entreprises has been helping the Indian economy in a lot of ways. They have helped the nation to trade and expand their businesses effectively. And when we talk about business, there is a lot of aspects which has to be considered beforehand, and the most important aspect is about managing the expenses for your journey to success as an entrepreneur or a businessman or businesswoman.

We got a chance to interact with Mr Raj N who is a Serial Entrepreneur, Angel Investor and Founder of Zaggle & ZIKZUK, to know more about the MSME industry and how is he helping the market to upscale at the time of hardship and manage their businesses for a long term profitable experience.

1.   How do you see the growth of MSME Business in this era of pandemic? How has it got affected?
MSME is among the major contributors to the Indian economy and the Covid-19 outbreak, has put every business, both small and large, into a combative/pugnacious state. The crucial question currently is how low-cash firms can tide over the economic impact caused by the pandemic and sustain themselves. The sudden announcement of a country-wide closure baffled MSME’s owners, employers and external stakeholders at unexpected times when no one has had experience in dealing with a health emergency of this nature. The MSME sector in India is the second-largest generator of jobs after agriculture. It acts as a fertile ground for entrepreneurs and innovators with considerable support in strengthening the business ecosystem. Covid-19 is a watershed moment that could help accelerate rapid business transitions for India’s vast MSME sector. The situation has forced businesses to look at whatever paths necessary to adapt to growth.

2.  A lot of startups got shut down due to immense loss caused because of lockdown. What according to you must have been the measure which the companies could have taken to run their businesses at large?
Keeping their financial wheels spinning during the lockdown period had become a challenge for most businesses due to low turnover and general uncertainty in the global economic environment. COVID-19 has affected each individual and business differently. Investing in future technologies and enabling automation will help businesses develop a concrete plan and solidify their future growth.  Small business owners need to develop a future course of action, in sync with their goals without panicking.  Digitising a business definitely takes some time, and of course, it comes at a cost. However, you don’t have to transform your business at once. One can begin by digitising your basic processes. Being aware of the situation and communicating transparently with internal and external stakeholders is crucial . Make sure your venture can create an impact on the economy, use this time to reach out to the clients to help them save more or cost cutting to and do more and more business.

Becoming successful in business is more about your mentality, psychology and determination than it is about finding little tips, tricks, hacks and exploitations in the marketplace. The right availability of Technology, capital investment, emergence of government policies and an entrepreneurial and innovative mind-set are the ones to grow.

3.    Describe your products from Zaggle which has cut costs for SMEs and Launched a New Credit Line Product? How is it helping the businesses to make a profit and grow?
Zaggle is an all-in-one business expense management platform that empowers businesses to spend smarter, saving time, money and resulting in happy and satisfied employees. The only goal that kept us going was to automate all the mundane financial management tasks. Our goal was to bridge the gap between banks and businesses to facilitate access to capital and keep the business running smoothly. Fintech companies have always worked to provide innovative and cutting-edge technological support to SMEs, businesses. As digitisation has become the new normal, more and more people have turned to virtual transactions. Since we are in the digitalisation business, we have seen rapid growth since the lockdown began. When the lockdown was announced, we immediately set up the virtual card platform for end-users. We are working aggressively and non-stop to launch our SME neo-banking platform. We want to create a platform for businesses to access financial services from different financial service providers easily. To avoid the hassle of different accounts, to have cheques signed by the authorities, to transfer funds via RTGS, this process should be automated through a platform to quickly deposit and transfer the money to ensure that the cheque is collected without having to go undergo the whole process.

4. If you could provide some insights about Neo Banking and Open Banking. What actually are they? And how are they considered to be the new trend in the Financial Industry?
Neo banks are pretty similar to traditional banking services – with accounts for depositing your money, borrowing funds, and making transfers. They differentiate themselves by being entirely digital, having no physical branch and are not associated with any traditional financial institutions. Typically, neo-banks use their partner’s licenses for the provision of services and use the available data to create a unique digital experience for their users. Neo banking’s biggest benefit lies in its low fees, which have a place due to the elimination of the costs associated with physical branch maintenance and providing affordable services. As Neo banks use digital platforms for their solutions, they can focus on offering a unique and streamlined user experience and develop advanced in-app features.

5.    How is your brand  different from your competitors in the market, if you could explain?
At Zaggle, we aspire to create unique products and services that solve business and enterprise problems by deploying world-class technologies. We strive to achieve this through the discipline of execution, innovation and rapid product development. Our main goal has been to help companies create a productive and efficient organization and help them alleviate the daily stress primarily associated with accounting and employee management. Our services help large-scale and small-scale businesses and entrepreneurs gain strategic insights while making business decisions, cut down on unnecessary expenses, and transform their overall business. At Zaggle, we don’t believe in making tall claims and underdelivering. We strongly believe in the notion of overall/ cumulative growth, i.e., for our partners and us and not just singularly us, which can be testified by our sprawling network of 3500+ clients, 4000 brands and 6 million users. This is what sets us apart from the rest.

6.    How Banks or FinTech companies are adapting to the new norm of Digital India during the Pandemic?
The emergence of the COVID-19 pandemic has led to many disruptions in business models and industries’ operation worldwide. In the last six months, Banks have transformed and accelerated digital transformation, ensuring customers the same service, offered to them during the pre-pandemic times.

The most visible change is the switch to an efficient online-only model. It has been an astonishing transformation as banks have turned nearly all of their interactions with customers digital. The banking industry has witnessed a disruptive innovation which has changed everything that were the norms in financial services. There has been a significant change in how financial institutions do business and how do employees do their jobs, lastly how customers manage their finances. FinTech companies have shown what is possible and that is all banks need a digital plan. Their digital strategies share a single category: creating the best customer engagement in the world. Underdeveloped digital banks and intermediaries are losing profitable customers in this market due to the participation of digital customers.

(The responses were shared by the agency)

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