Logistics company 4TiGO is looking to streamline B2B payments in its industry. The India-based startup said Tuesday (Nov. 22) that it is rolling out a network to enable connections between logistics service providers and clients and that network will support the payments these companies make to each other.
According to reports, 4TiGO’s network is based in the cloud and connects fleet owners, trucking and transport companies and other industry stakeholders on a single portal to transact. Payments made on the network are facilitated by India’s Federal Bank, 4TiGO said.
Further, the company also announced that it is rolling out a lending service for players on its platform. Transporters operating on the network can access working capital financing via its banking partnership, a move 4TiGO said could be especially useful for SMEs in the trucking, logistics, fleet and transport spaces.
“The idea is for a truck driver, anywhere in India, to be able to find a load, seal the deal and be on his way, all in just three clicks,” explained 4TiGO Cofounder and Chief of Strategy and Marketing Vivek Malhotra in a statement.
In addition to the collaboration with Federal Bank, Indian Oil Corporation Limited has also signed on as a partner with 4TiGO. The oil company’s retail outlets will be available to 4TiGO clients, with added services like fuel discounts, parking and repair facilities for drivers.
“Traditionally, the industry has been heavily dependent on the use of cash for funding the trips,” Malhotra continued. “Handling of cash has its own issues and risks. We are looking to help the small transporters and fleet owners leapfrog into the emerging cashless economy by facilitating online transactions for everything from lorry hire to fuel and toll payments and even the remittances by the driver to his family.”
Working capital, too, is an issue faced by many smaller firms in this industry, the executive added.
“With help from Federal Bank, we will be able to facilitate them with access to working capital, which will go a long way in unlocking the real growth potential of any of these businesses,” he added.
India’s economy was jolted earlier this month when the government demonetized larger-value bank notes. It’s had a significant impact on businesses, many of which use cash to pay suppliers and make payroll. It’s also offered an opportunity for local FinTech players to gain new traction by providing businesses with digital financial services as India shifts away from cash.