Zaggle Wins $20 Mn Order From Visa For Co-Branded Forex Cards

Zaggle Wins $20 Mn Order From Visa For Co-Branded Forex Cards

Zaggle Wins $20 Mn Order From Visa For Co-Branded Forex Cards

The Visa deal, which will be worth $20 Mn, will last five years, Zaggle said in an exchange filing

The deal propelled Zaggle’s stock price to a new 52-week high of INR 247.70 during intraday trading on Friday

Over the past 11 years, Zaggle claims to have provided over 5 Cr prepaid cards in the Indian market, with over 2,400 lifetime customers

Listed prepaid cards major Zaggle has received a significant order from the global payments major Visa for making prepaid forex cards.

The deal, which will be worth $20 Mn, will last five years, Zaggle said in an exchange filing. Partnering with Visa is also being seen as a growth agreement by the listed startup, as mentioned in the exchange filing.

Visa will pay Zaggle the launch bonus when the prepaid forex cards are launched, along with incentives based on the number of transactions that take place via the said cards. The listed startup also noted that it could leverage its existing corporate base to sell forex cards to the employees of those companies and expand its user base.

The deal propelled Zaggle’s stock price to a new 52-week high of INR 247.70 during intraday trading on Friday. As of 12:39 PM on Friday, the company’s shares were trading at INR 244 apiece, nearly 13% higher than Thursday’s close. Compared to its listing price of INR 164, the current share price is 48% higher.

The startup, which went public in September, saw its public issue oversubscribed 12.57X on the last day of its IPO. The issue received bids for 24.29 Cr shares as against 1.93 Cr shares on offer, led by qualified institutional buyers (QIBs).

Zaggle, founded in 2012 by Raj P Narayanam, makes network-agnostic prepaid cards for corporates as rewards and reimbursement vehicles, along with fintech SaaS solutions for expense management. Over the past 11 years, Zaggle claims to have provided over 5 Cr prepaid cards in the Indian market, with over 2,400 lifetime B2B customers. 

As per its red herring prospectus (RHP), Zaggle’s profit after tax (PAT) declined to INR 22.9 Cr in the financial year 2022-23 (FY23) from INR 41.9 Cr in the previous fiscal. Its operating revenue jumped to INR 553.5 Cr in FY23 from INR 371.2 Cr a year ago.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

You have reached your limit of free stories

want to read the full story?

Unlock This Story & Enjoy All Members-Only Benefits With Inc42 Plus.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?

Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Zaggle Wins $20 Mn Order From Visa For Co-Branded Forex Cards-Inc42 Media

How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Zaggle Wins $20 Mn Order From Visa For Co-Branded Forex Cards-Inc42 Media

Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Zaggle Wins $20 Mn Order From Visa For Co-Branded Forex Cards-Inc42 Media

Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Zaggle Wins $20 Mn Order From Visa For Co-Branded Forex Cards-Inc42 Media
Zaggle Wins $20 Mn Order From Visa For Co-Branded Forex Cards-Inc42 Media

You’re in Good company