Staff management solutions provider PagarBook said that it is looking to offer new digital banking solutions for small and medium enterprises (SMEs) and their employees. PagarBook has largely focussed on staff and payroll management for startups, till date.
As part of the strategy, PagarBook is set to launch savings accounts for SME employees and has already launched PagarBook Cash, a credit product based on monthly salaries of SME employees on its platform. The Bengaluru-based startup is targeting opening one million savings accounts within the next few quarters. At present, PagarBook Cash doles out loans with average ticket size ranging around the Rs 5,000 mark.
Within the next six months, the company expects to disburse close to 100,000 loans on a monthly basis. In December 2020, PagarBook raised $15 million in funding led by Sequoia Capital India with participation from India Quotient.
Earlier in 2020, Sequoia-backed Khatabook also launched employee management solution, PagarKhata, to help small merchants digitize attendance, payroll and salaries, upping the competition in the segment.