Zaggle Raises Stake In Mobileware With INR 7.25 Cr Investment

Fintech SaaS company Zaggle has acquired an additional 12.34% stake in digital payments service provider Mobileware Technologies for INR 7.25 Cr.

In a statement, Zaggle said it acquired 4,622 equity shares for INR 7.25 Cr from the promoters of Mobileware, representing a 12.34% stake in the company on a fully diluted basis.

With this acquisition, Zaggle’s total shareholding in Mobileware has increased to 38.34%. The spend management company had acquired a 26% stake in Mobileware Technologies (now known as ‘86400’) for INR 15.6 Cr in September last year. 

Founded in 2010, 86400 provides digital banking and fintech solutions. The company helps banks and financial institutions improve their digital services, especially in rural and urban areas. 

86400 has an API banking platform named TransXT (known as ‘Bank In A Box’) with which it facilitates digital transactions and provides its payment services to more than 80 banks and 20 fintech companies. 

Under the partnership, Zaggle aims to tap Mobileware’s infrastructure and expertise to enhance its payment solutions. 

Mobileware’s UPI switch solutions, available both on-premises and in the cloud, will enable Zaggle to develop and co-create new use cases for clients, including solutions for lending, credit, and card management services.

Zaggle Eyes Strategic Acquisitions To Expand Offerings: Founded in 2011 by Raj Narayanam, Zaggle provides a spend management and corporate employee benefits platform. Its offerings help businesses automate their accounts and issue prepaid cards. Its portfolio of SaaS products also includes tax and payroll software. 

In December last year, Zaggle raised INR 594.84 Cr in its first qualified institutional placement (QIP) round with an eye on expanding its offerings through strategic investments and acquisitions. Back then, sources told Inc42 that the company was looking to make three more investments and acquisitions by March 2025. In its Q3 FY25 investor presentation, Zaggle’s founder had also hinted the same.

“For FY25, we are confident of achieving 58-63% growth in our top line. We are also evaluating inorganic growth opportunities to expedite this growth and the discussions are at advanced stages,” Narayanam then said. 

It must be noted that Zaggle acquired an additional 53.32% stake in Span Across IT Solutions for INR 320.3 Cr in the quarter ended December 2024 (Q3 FY25). The fintech SaaS company said this led to a gain of INR 2.3 Cr in its top line during the quarter.

Zaggle’s consolidated net profit jumped 30% to INR 19.74 Cr in Q3 FY25 from INR 15.22 Cr in the year-ago quarter. Operating revenue zoomed 69% to INR 336.89 Cr in the reported period from INR 199.51 Cr in Q3 FY24.

Shares of Zaggle ended 4.94% lower at INR 327.10 apiece on the BSE today.