Zaggle Jumps Over 4% After Winning INR 76 Cr Order From Kotak Mahindra Bank

Shares of fintech SaaS startup Zaggle jumped 4.4% to INR 215.75 on the BSE on Wednesday (November 1), a day after the company announced entering into a cobranding agreement with Kotak Mahindra Bank.

As part of the pact, Zaggle will offer corporates an integrated package of financial products, including Kotak’s payroll banking services, such as salary accounts and co-branded prepaid cards, which would be incorporated with Zaggle’s SaaS solutions, among others.

Zaggle said that the agreement is for a period of three years and is valued at an estimated INR 76 Cr.

Founded in 2011 by Raj P Narayanam, Zaggle provides a spend management platform for businesses, along with an employee benefits platform. It made its stock market debut in September at INR 162 apiece on the BSE. Its IPO price band was set at INR 156-INR 164 per share.

Zaggle’s announcement on agreement with Kotak Mahindra Bank came days after it bagged a $20 Mn order from the global payments major Visa for making prepaid forex cards.

Following this announcement earlier last month, Zaggle’s shares had jumped 9%.

Shares of Zaggle rose today despite several other new-age tech stocks ending the trading session in the red amid a lull in the broader market.

Shares of Zaggle are trading over 33% higher on the BSE from its listing price.

Zaggle is expected to report its September quarter results for the current fiscal next week, on November 7. In Q1, Zaggle reported a 67.4% year-on-year fall in its net profit to INR 2.06 Cr while its operating revenue increased 33.7% YoY to INR 118.5 Cr.

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