Zaggle Partners ONDC To Facilitate Prepaid Payments To Customers

Fintech SaaS startup Zaggle has partnered with Open Network for Digital Commerce (ONDC) to facilitate issuance of prepaid payment instruments to the latter’s customers.

“Zaggle and ONDC have signed an agreement for facilitating the issuance of prepaid payment instruments to the customers or sponsor organisations for rewarding their employees, partners and consumers,” Zaggle said in a filing.

Zaggle’s shares closed at INR 351 in the intraday trade, which is nearly 3% lower than the previous day’s close of INR 361.70.

A month ago, ONDC said it is looking to integrate banks and fintech platforms, shortly after the network began early pilots for credit disbursal in partnership with Tata Group superapp Tata Neu and Paisabazaar.

Founded in 2011 by Raj Phani, Hyderabad-based Zaggle specialises in the enterprisetech sector. It provides spend management solutions to help corporations, SMEs, and startups manage their business expenses.

In July, the company also inked a pact with Hero MotoCorp to offer the auto giant its employee expense management platform Zaggle Save.

Back then, Zaggle in an exchange filing said the platform has been designed to streamline and optimise the management of employee expenses and benefits, enhancing efficiency and transparency within the organisation.

The company also reported its first quarter results recently, where its consolidated profit after tax (PAT) surged 716% to INR 16.73 Cr in the quarter ended June 30, 2024 (Q1 FY25) from INR 2.05 Cr in the year-ago period due to strong growth in its business.

Additionally, revenue from operations zoomed 113% to INR 252.2 Cr in Q1 FY25 from INR 118.4 Cr in the corresponding quarter last year, boosted by strong demand for its accounts payable platform Zoyer and credit card bundled solutions. 

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