PayMate, is one such fintech company that has strengthened its offerings with the acquisition of Z2P (Zaitech Technology Pvt. Ltd.) from Bhopal.
With reports indicating thatlending to small businesses may be challenging in India, fintech companies are looking at ways to come up with with alternative offerings to capture the opportunities. Mumbai-based B2B payment processor, PayMate, is one such fintech company that has strengthened its offerings with the acquisition of Z2P (Zaitech Technology Pvt. Ltd.) from Bhopal.
This partnership will allow PayMate to transform from a mere payment processing company to a lending platform for SMEs customers.
A recent study by KPMG highlighted that there are over 51 million SMEs and MSMEs in India but the greatest impediment to their growth today is the lack of credit. This credit gap is conservatively estimated at $300 billion.
PayMate’s primary business lies in the automation of payables and receivables, as well as end-to-end reconciliation services, along with digital integration ofdocuments such as invoices. In total, PayMate handles about $3billion worth of transactions annually.
“With the Z2P acquisition, we can now speed up the credit application and the credit decision making processes for SMEs and provide supply chain financing solutions to our large corporate clients.PayMate can now offer merchants a richer set of tools to better manage their cash flow and ultimately grow their businesses.,” said Ajay Adiseshann, founder and CEO, PayMate.
Rajat Yadav, founder, Z2P Technologies, said, “Technology and data-driven actionable intelligence for lending, along with machine learning, is what Z2P has built over the past few years. We look forward to joining the PayMate team and marrying our credit and payment technologies, along with our experience, to enhance the quality and flow of credit to SMEs in India.”