Zaggle Q2: Net Profit Soars 270% QoQ To INR 7.5 Cr

Fintech SaaS startup Zaggle, which listed on the bourses in September this year, saw its consolidated net profit zoom 269% quarter-on-quarter (QoQ) to INR 7.5 Cr in the second quarter (Q2) of the financial year 2023-24 (FY24). 

Zaggle had reported a net profit of INR 2.05 Cr in Q1 FY24. Its financial statement did not disclose the numbers for Q2 FY23. 

Revenue from operations jumped 55% to INR 184.2 Cr during the quarter ended September 2023 from INR 118.4 Cr in Q1 FY24. 

Including income from other sources, the startup reported a total income of INR 184.9 Cr in Q2 FY24 as against INR 119.9 Cr in the previous quarter. 

Meanwhile, total expenditure jumped nearly 50% to INR 174.9 Cr in Q2 FY24 from INR 116.9 Cr in Q1 FY24. Of this, client loyalty programmes, incentives and employee benefits emerged as major cost centres. ‘Cost of point redemption/ gift cards’ accounted for 65% of the total expenses, aggregating to INR 114 Cr in Q2 FY24, up 97% QoQ. 

Incentives and cashback cost the company INR 25.7 Cr in Q2 FY24, up marginally from INR 24.98 Cr during the preceding quarter. Employee benefits rose 28.5% to INR 17.9 Cr during the period under review from INR 13.9 Cr in Q1 FY24.

Founded in 2011 by Raj P Narayanam, Zaggle offers a spend management platform and an employee benefits portal for enterprises It helps companies automate their accounts and enables issuance of prepaid cards in partnership with banking partners for employee rewards.

Zaggle claims to have issued more than 5 Cr prepaid cards since its inception, and counts over 2,400 lifetime B2B customers. 

The results come two months after the fintech SaaS startup made a flat listing on the bourses on September 22 at INR 164. However, the stock has been on an upward spiral since then and is currently trading over 37% higher from the listing price. 

The surge has largely been led by a slew of big ticket deals signed by the fintech SaaS startup in the past one month. In October, Zaggle bagged a $20 Mn order from the global payments major Visa for issuing prepaid forex cards. Right afterwards, the company also inked an INR 76 Cr cobranding agreement with Kotak Mahindra Bank to offer a suite of financial products to corporates. 

Shares of Zaggle closed 3.13% lower at INR 226.05 on the BSE on Tuesday (November 7). 

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