PayMate announces acquisition of Z2P to benefit SMEs

PayMate, a leading player in electronic Business-to-Business (B2B) payments space, has announced acquisition of Z2P (Zaitech Technology Pvt. Ltd), a digital lending platform which provides hassle-free and real-time credit using social and banking data along with proprietary analytics and AI. The acquisition is expected to be completed by May 2018 and it follows the announcement in February of this year by PayMate of its B2B partnership agreement with Visa.

As a result of the acquisition, PayMate acquires an innovative and proven lending solution in Z2P, which when combined with PayMate’s proprietary B2B payments platform will revolutionize the way businesses manage their payment operations, cashflow, and access to growth capital. PayMate plans to partner with banks and NBFCs to improve the flow of credit to SMEs.

According to a recent study by KPMG, there are over 51 million SME and MSMEs in India. These SMEs are the key drivers of future economic growth. However, the greatest impediment to their growth today is the lack of credit. This credit gap is conservatively estimated at $300 billion. PayMate aims to chip away at this credit gap by enabling credit and helping unleash SME growth.

“We are singularly focused on helping our business customers improve their payment operations and saving money. With the Z2P acquisition we can now help our business customers get easier and faster access to credit. We will leverage Z2P and PayMate’s technology and analytics to speed up the credit application and the credit decision making processes for SMEs and provide supply chain financing solutions to our large corporate clients,” said Ajay Adiseshann, Founder & CEO, PayMate. “Z2P is a technology led company with a very talented team. We are excited to have Rajat and the Z2P team join the PayMate family.”

Founded and led by IIT Madras alumnus, Bhopal-based Z2P Technologies has been innovating in the Indian credit market by leveraging technology and data to make low-risk, real-time lending decisions. Post acquisition, the team will be relocating to Mumbai.

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.”