Volopay partners with SBM Bank to offer corporate credit cards in India
- ByStartupStory | June 30, 2022
Business-to-business (B2B) payment management startup Volopay from Singapore has teamed up with State Bank of Mauritius India to offer corporate Visa and RuPay credit cards as part of its expansion into the Indian market. The card is an expansion of its current products available in the Indian market, which helps small and medium-sized businesses automate their platform accounts and manage their costs. In addition to India, Volopay is expanding into Indonesia and the Philippines. It is currently present in Australia and Singapore.
The Y Combinator-backed business is partnering with Airwallex and ANZ Bank in Australia to supply cards, and NIUM Pte Ltd. in Singapore to offer cards. As part of the agreement, Volopay will serve as the bank’s originator, distributor, and servicing agent while SBM Bank India will provide the issuing of authorised Visa and Rupay credit cards.
Rohit Bhageria, a founder member of Volopay, said: “Next month, the offering will go live. There are already 700 companies on our waiting list. In the upcoming 12 to 18 months, we intend to enrol 7,000 firms.” The business anticipates that India will have lower customer acquisition costs than Australia does. “Our Customer Acquisition Cost (CAC) in Australia is roughly US $2,000 per customer. We estimate the CAC in India to be between $600-700 USD “said Bhageria.
Since this is a pure-play credit card service, the company is not impacted by the RBI’s recent clarification that stated lending through prepaid payment instruments (PPIs), such as prepaid cards and wallets. Volopay and Visa have collaborated to deliver financial management solutions in the Asia-Pacific area under Visa’s Fintech Fast Track Program. To bolster its leadership group, the company hired Nirvikar Jain, a former Citibank executive, as the Global Business Officer in May of this year.
Volopay faces competition in India from companies like EnKash, Karbon, and Kodo, which offer corporate credit cards and assist businesses in managing spending through agreements with banks.
In order to access the Indian market, Volopay raised $29 million as part of its Series A round in March of this year from the Winklevoss twins, Cameron and Tyler, as well as a global decacorn among others. Fintech industry veterans Jeffrey Cruttenden, CEO of Acorns, Sweta Rau, Founder of White Ventures, Amrish Rau, CEO of Pine Labs, and Jitendra Gupta, Founder & CEO of Jupiter, among others, participated in the round, along with Antler Global and VentureSouq.
Follow Startup Story
Related Posts
