Startup from Assam launches first prepaid debit card in Northeast

Guwahati: Startup from Assam launches first prepaid debit card in  Northeast

A fintech venture from Assam HookoluPay is taking banking services to far-flung pockets in Northeast.

HookoluPay who has just launched prepaid debit card which is the first of its kind to be launched by a fintech company in the Northeast has set it sights on launching Payment Without Internet through IVR, credit card , multi currency Prepaid card, Inbound and Outbound International Remittance and Core banking System (CBS) for Banks, Non banking financial companies, micro financial institutions, Nidhi companies etc.

"There is a lack of awareness of digital payments in NE mostly rural population, especially tea workers who still do the traditional mode of transaction cash. This inspired us to launch the prepaid debit card. We are the first fintech company of North East Region to start prepaid debit card" Aziz Ali Founder of HookoluPay told Business Northeast.

The prepaid debit card was recently launched at the India International Trade Fair in New Delhi. Industries and Commerce Minister Bimal Borah and Rajeev Chandra Joshi, Principal Resident Commissioner, Government of Assam, Assam Bhawan were present at the launch ceremony.

HookoluPay is a digital payment platform providing basic banking and allied services to the unbanked population in rural areas through their retailer-operated Customer Service Points.

Their services include Money Transfers, Withdrawals, Deposit, Balance Enquiry, Mini ATM, Aadhar ATM, Travel Bookings, Recharges, Pan, Fastag, Loan EMI, Bills, Mpos, UPI QR Payments, etc.

Recently, the startup has struck a deal worth Rs. 1 Crore with the PSU banks, wherein they provide the banks with Micro ATM/POS machines, which are delegated to the village level entrepreneurs (VLE) and Customer Service Points to make cash withdrawal/deposit and digital payments possible for people, especially in the unbanked areas.

The Centre and state governments of  Northeast and the Reserve Bank of India have given a lot of emphasis for accelerating financial inclusion through various ways.  Access to financial services, in particular credit, is a well established harbinger of economic prosperity. In fact the physical access to banking is the weakest in the Northeast with only 19 branches per 1000 sqkms in 2020-21. The credit deposit ratio-another indicator of credit usage was 43 per cent in the northeast.

Opening an account is a  simple and quick process with us without any physical documents or without rushing to the bank. "One can open account within five minutes through our platform with insta Kit(Physical & Virtual ATM).  The person just needs to connect with our Company or representative. (Email support@hookolupay.com/hookolupay@gmail.com)WhatsApp or call - 70023 30629/8099235553)" Ali said.

HookoluPay was selected in the first COHORT in Assam Startup in 2019. A fintech venture working towards financial inclusion and taking banking services to the far-flung areas of Assam, the startup needed business handholding to smoothen the rough edges of the business model, fortify their financial accounting, understand and adhere to the fintech regulations, develop an impressive pitch deck and hone the skills to pitch before investors.

Ali said it is a zero balance account, without any monthly, yearly or any hidden charges. The prepaid debit card can be used at any shopping establishment or at ATM.

"The company is targeting 5 million users in the coming five years" Ali said.  

The company is targetting  tea workers, big corporates or  any medium or small enterprise's, students who wishes  to open minor  accounts, and transporters to pay fare to the fleet owners or drivers etc.

The customer will have to pay  a very nominal charge for one time.

Aziz started his journey at HookoluPay in 2018 where it is solving the real problem of rural india with its Financial Inclusion Products/Services and Digital Payments.

"In the start, I faced challenges and had with no money to pay to my software developers. I borrowed money from my friends and launched it in the market in September 2018. After launching in the market, we were trying to onboard village level entrepreneurs  and for that we needed working capital which was again a big challenge for us. But somehow managed it by resorting to cost cutting. The incubation at Assam Startup helped us a lot and the game changed after that. We received grant, great mentorship and physical working space at The Nest” he said.

"Our cash flow is now positive and the company valuation is Rs. 100 crores as of now" he said adding it has now presence in all states of Northeast.

The company has  presence in Delhi, Kerala, Haryana, Punjab UP, Bihar, West Bengal etc. "Our next focus is to start our regional office in Mumbai and corporate office in Delhi.

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