In the latest newsletter issue (Zaggle Prepaid), there was a question on fleet spends i.e. what is this ₹73,000 crs & how is it an opportunity for Zaggle

Here’s what I picked —

1. The ₹73000 crores is just fleet spends on fuel

2. Fleet owners pay cash upfront to drivers for a trip which could be upto 30 days

3. This working capital requirement puts a strain on the fleet owners’ finances struggle

4. Zaggle’s use case is putting this money onto a prepaid card. Not the entire 30 days’ worth — the owner can load the money on a periodic basis which helps him manage cash flow much better

5. Additionally there is better control, transparency, theft incidence & efficiency in operations

Globally this is a multibillion dollar established business and companies like WEX & FleetCard are leaders here. For instance, WEX’s full year revenue (2023) was $2.55 billion