Zaggle Bags INR 76 Cr Cobranding Order From Kotak Mahindra Bank

Listed fintech SaaS startup Zaggle has entered into a cobranding agreement with Kotak Mahindra Bank to offer a suite of financial products to corporates. 

In an exchange filing, Zaggle said that the agreement is for a period of three years and is valued at INR 76 Cr by conservative estimates. 

The collaboration will allow Zaggle to offer corporates an integrated package of financial products. This includes Kotak’s payroll banking services, like salary accounts and co-branded prepaid cards, seamlessly incorporated with Zaggle’s SaaS solutions, specifically tailored for employee flexi-benefits (Zaggle SAVE) and travel and expense management (Zaggle EMS).

“This integration will enable working professionals to boost their incomes by up to 7% through flexible benefits designed to facilitate tax savings, giving complete visibility and greater control over their pay, flexi-benefits, advances, reimbursements, and spending, accessible through a single mobile app,” Zaggle said in a statement.

The development comes days after Zaggle said it received a $20 Mn order from global payments major Visa for making prepaid forex cards.

Founded in 2011 by Raj P Narayanam, Zaggle provides a spend management platform for businesses, along with an employee benefits platform. It helps businesses automate their accounts and issues prepaid cards in partnership with banking partners to reward their employees with incentives and gifts.

Zaggle claims to have provided over 5 Cr prepaid cards in the Indian market since its inception, with over 2,400 lifetime B2B customers. 

The startup went public last month, listing on bourses at INR 164. Its public issue received bids for 24.29 Cr shares as against 1.93 Cr shares on offer, led by qualified institutional buyers (QIBs).

Earlier this month, Zaggle reported a 67.4% year-on-year decline in its net profit to INR 2.06 Cr during the quarter ended June 2023. Operating revenue zoomed 33.7% YoY to INR 118.5 Cr.

Shares of Zaggle ended Tuesday’s session 1.1% lower at INR 206.60 on the BSE.

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