Zaggle Q3: PAT Jumps 10X YoY To INR 15.2 Cr

Fintech SaaS startup Zaggle reported more than 10X jump in its profit after tax (PAT) to INR 15.2 Cr in the December quarter (Q3) of the financial year 2023-24 (FY24) from INR 1.5 Cr in the year-ago period, helped by strategic diversification in its product portfolio and certain cost-cutting measures.

Even on a quarter-on-quarter (QoQ) basis, Zaggle’s PAT doubled from INR 7.5 Cr in Q2 FY24.

Meanwhile, the startup posted an all-time high quarterly revenue during the reported quarter. Operating revenue increased 35.1% to INR 199.5 Cr in Q3 FY24 from INR 147.6 Cr in the corresponding quarter of the previous fiscal.

On a QoQ basis, Zaggle’s operating revenue increased 8.3% from INR 184.2 Cr.

Commenting on the company’s growth during the quarter, Raj P Narayanam, founder and executive chairman of Zaggle, said that during the quarter the startup also saw a 56.4% YoY growth in adjusted EBITDA (before ESOP expenses). 

“Our record-breaking performance is a result of our product portfolio’s strategic diversification and the successful launch of commercial credit card offerings,” said Narayanam.

It is pertinent to note that during the December quarter, Zaggle also announced entering into a cobranding agreement with Kotak Mahindra Bank.

“Recently, with Torrent Gas Limited joining as a client, we’ve entered the fleet loyalty card program, offering significant volume and margin potential. Employing an efficient end-to-end closed-loop system, we are tapping into India’s vast fleet spends market estimated to be worth INR 730 Bn,” he said.

Founded in 2011 by Narayanam, Zaggle provides a spend management platform for businesses, along with an employee benefits platform. It made its stock market debut in September last year.

Zaggle’s total expenses increased 26.6% YoY and 4.6 QoQ to INR 183.1 Cr in Q3 FY24.

However, the startup’s cost of point redemption or gift cards reduced to INR 96.8 Cr in the reported quarter from INR 114.4 Cr spent in the bucket in Q2 FY24.

Zaggle also cut its employee benefit expenses to INR 11.1 Cr in Q3 FY24 from INR 17.9 Cr in the prior quarter.

Narayanam added that there is an encouraging momentum in the business and Zaggle is dedicated to maintaining the upward trajectory.

Ahead of its Q3 earnings, shares of Zaggle ended Tuesday’s (February 6) trading session marginally higher at INR 231.85 on the BSE.

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