Digital wallet company MobiKwik is entering the employee benefits space with the launched Magic, a SaaS-based platform for end-to-end corporate processes, rewards and reimbursements.
The employee benefit and reimbursements industry in India is estimated at Rs 51,600 crores and is largely paper based, Mobikwik said. The product offering includes employee benefits such as reimbursements for food, fuel, medical, phone, LTA and other company benefits—all accessible digitally for both corporations and employees on the MobiKwik app.
Magic can be used across the 3 million merchant network and offers instant payment with turn-around-time as less as 24 hours, the company said in its statement.
Competition
Note that Paytm has also ventured in the space, with its Food Wallet where companies will be allowed to load food allowance to employees under the government’s approved tax redemption bracket. The Food Wallet will be available in the Paytm app as a separate section in the pass book which will have the details of the allowance.
Employee benefit provider Sodexo, which has been present in India since 1997, also launched a digital offering “Premium Card” recently. Premium Pass can be used at any merchant which accepts RuPay. The company already has a paper-based gift voucher solution and has a separate network 11,000 outlets where it can be accepted.
In January this year, employee benefit and payroll management startup NiYO Solutions Inc raised Series A funding of $13.2 million (Rs 85 crore). The fresh fresh funding will be used to expand to tier 2 and 3 towns and further product development, team expansion and increasing presence in tier 1 cities, as per the company.
In October 2017, Digital employee benefits solutions provider, Zeta also partnered Kotak Mahindra Bank to launch a multi-wallet digital prepaid solutions platform called Paymint. Through this, companies that have tie-ups with Kotak for salary accounts will be able to manage multiple reimbursements and allowances such as meal vouchers, medical reimbursements, leave travel allowances, gift cards, conveyance, fuel allowances, and driver salaries among others via Paymint.