Digital employee benefits startups like Zeta, NiYO get big boost from Budget 2018

If the finance minister's announcement of standard deduction of 40,000 brought cheer to the salaried sections, it also spread joy to payment companies like Zeta and NiYO Solutions involved in digitising employee benefits and reimbursements.
Founders of these companies told ET that it will help them reach out to corporates faster, digitise the entire payment stack for them and in turn help them scale up quickly.
"The biggest takeaway is that the finance minister has acknowledged the problem of paper bills for employees and for companies to maintain audit trails for such payments," said Ramki Gaddipati, chief technology officer of Zeta.
Explaining how the move will benefit such startups, Gaddipati said the ministry is also moving towards an electronic audit mechanism which will allow digital copies of bills to be sufficient for audit purposes.
"This is a big positive for companies like us who can offer complete digitisation of their employee benefit payments and we can help corporates maintain electronic receipts of payments with the use of our technology platform," he said.
Another startup in the employee benefits business NiYO is now looking to take their complete digital stack to corporates with a more compelling offering.
"Medical bills had to be always kept in paper form for audit purposes. Now, with the abolition of medical reimbursements as a separate category it allows corporates to fully digitise their offerings, where players like us will come in," said Vinay Bagri, the chief executive officer of NiYO Solutions.
He explained how checking fraud in medical bills was a huge challenge, especially with employees claiming it for themselves as well as for their family members. Now, with paper bills not required anymore, these startups can even onboard those corporates who were hesitating to digitise their benefits stack.
Zeta also hopes that corporates, in their effort to redesign their salary structure to attract talent, will try to introduce various reimbursements besides just medical, food and leave travel allowance.
Gaddipati said there are multiple allowances in the Income Tax Act which can now be brought into the salary structure to attract quality talent and Zeta will pitch to companies with their ability to bring so many offerings to the table.

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