Digital employee benefits solutions provider, Zeta has made an equity investment in ZingHR. While the company did not disclose the deal amount, this VCCircle report indicates that it picked up less than 9% stake and the deal is worth Rs 5-10 crore. Following the deal, ZingHR will offer its clients Zeta’s solutions such as meal vouchers, paperless claims for medical, LTA, fuel, and mobile among others.
ZingHR, which also counts Accel Partners and Mumbai Angels as its investors, offers cloud-based end-to-end employee lifecycle management services, including as talent management, performance management, training, time and attendance, payroll and expense management and HR Analytics. ZingHR claims to have over 500,000 users across 450 companies worldwide, including Svatantra Finance, DHL, Shree Ram Housing Finance and Sterling Resorts among others. The company was a part of Microsoft Ventures Accelerator Batch 4.
Last month, Zeta had partnered with fellow employee benefits services provider Sodexo, to start offering companies solutions to manage medical, fuel, leave and travel allowances for employees. Suvodeep Das, vice president of marketing at Sodexo, told MediaNama that the two companies are working on a co-branded app for the other allowances. This partnership will see Zeta act as technology provider, while Sodexo will bring in expertise in the B2B domain of sales.
Meal vouchers cannot be in paper form
Meanwhile, following the Reserve Bank of India’s draft guidelines which say that meal vouchers cannot be issued in paper form anymore and will have to move to digital means by the end of 2017, the employee benefits space has started heating up.
In the month of April: first Zeta partnered with card network RuPay to issue a pre-paid card called Zeta Super Card for employees, which will allow them to pay with the pre-paid card at over 12 lakh RuPay enabled point-of-sale (POS) terminals; and then Paytm launched a Food Wallet where companies will be allowed to load food allowance to employees under the government’s approved tax redemption bracket.
The following month, in May, Sodexo signed a partnership with POS provider Mswipe where employees can use Sodexo’s Meal Card at some Mswipe merchants like grocery stores, restaurants, cafes and food delivery services. And earlier this week, Sodexo tied-up with POS terminal deploying company Innoviti Payments Solutions to further expand the network of outlets where Sodexo is accepted digitally.