The launch of FASTags provided India’s logistics sector, which is expected to be valued $380 billion by 2025, a much-needed boost. Car owners may pay tolls immediately while the vehicle is moving credits to RFID technology, also known as radio frequency identification.
While paying tolls quickly is the primary function of FASTags, Mumbai-based FinTech company 1Pay is utilising the technology to develop additional use cases for fleet owners, including paying for gasoline, parking, challan, and other things.
“We use the FASTags as a unique identification for vehicles and completely digitize the whole journey for transporters, especially the mid-sized ones,” the company co-founder Sanjiv Singh said as per reports.
Singh went on to remark that although FASTags make it simple to pay tolls, fleet owners with, say, more than 100 cars may find it challenging to keep track of keeping balance in all the tags for efficient transportation. However, fleet owners may simply handle these payments as well as other payments, such as the above-mentioned parking or gasoline, with 1Pay.
The logistics and transportation management services offered by 1Pay include vendor payout systems, invoice collection systems, tailored bill payments, insurance, and BBPS-based bill payments. These services are in addition to the payment suite.
The Reserve Bank of India (RBI) has granted in-principle clearance to 1Pay, one of the few businesses, to operate as a payment aggregator, which is noteworthy.
In the next two to three years, 1Pay hopes to add more than 2 million commercial cars to its onboarded fleet, which is now close to 500,000. According to Singh, the firm already works with 50,000 fleet owners and hopes to increase that number soon.
1Pay was established in 2019 and is still bootstrapping. However, the business plans to attract outside capital over the next two to three months. Singh stated that it would be in the range of $15 to $20 million without providing specific amounts.
He said that the business produced close to Rs 28 crore in income in the previous fiscal year and aimed to make between Rs 38 and Rs 39 crore this fiscal year.
Singh emphasised that in contrast to current market trends, in which startups were too aggressive in onboarding users, the firm has been very sluggish in terms of client acquisition. Regarding the company’s continued survival thus far, he noted, “we didn’t lose customers either”.
Now, 1Pay wants to increase its visibility as well. The corporation intends to increase the number of salespeople and contact points around the nation in order to accomplish this.
In the upcoming years, the logistics sector in India is expected to expand rapidly. There are already many startups in the logistics industry that serve various sub-segments. The finance industry is expanding as a result of the logistical boom, and companies like 1Pay are attempting to capitalise on this trend.
