Essel Group-owned payments company ItzCash has tied up with the Manipur State Power Distribution Company to let customers to recharge their prepaid electricity meters using their online portal or visiting the nearest ItzCash Point outlet.
To check illegal power connections and wastage, the Manipur government had introduced pre-paid electricity meters where customers would pay first and consume only for the amount paid. Consumers can buy electricity though recharge vouchers. They can enter the voucher number using the keypad of their in-home device or the meter. The meter sends an alert in the event of low credit or overload.
Prior to this tie-up, ItzCash had also partnered with BSES Delhi, Reliance Energy and Tata Power for payment solutions. ItzCash says that it has more than 10,000 merchants and spread across more than 3,000 locations including cities, towns and rural India. ItzCash has over 75,000 ItzCash franchisees branded as “ItzCash World” and more than 2,75,000 retail outlets branded as ‘ItzCash Points’ in 3000+ Tier I and II cities and towns. Naveen Surya, managing director of ItzCash also added that the North-East accounts for 22% of the company’s total franchisee.
In February, ItzCash secured an investment of Rs 100 crore from promoter Ashok Goel as it sought a payments bank licence from the Reserve Bank of India. The company, in 2009, had raised Rs 50 crore from LightSpeed Venture Partners and prior to that it had raised Rs 10 million from Matrix Partners and Intel Capital.
It’s also worth noting that ItzCash has been successful with other government agencies for payments simpler. For example, in 2008, Itz Cash’s prepaid cards accounted for around Rs. 44 Crores of transactions in July 2008, and Rs. 41.6 crores in August 2008, contributing 14.71% and 13.31% to total successful transactions in July and August respectively on IRCTC’s website. IRCTC handled around $102 Million (Rs. 453.51 crores) of online transactions in August 2008 and $97.73 Million (Rs. 432.44 crores) in July 2008. What was surprising is that around 30% of this amount was refunded/transactions were unsuccessful – $31.75 Million (Rs. 140.5 crores) in August, and $29 Million (Rs. 132 crores) in July.