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Listed fintech SaaS startup Zaggle has received approval from the NPCI to operate as a third party application provider (TPAP)
The move will now allow the startup to offer UPI services directly through its platform, empowering over 3 Mn users across its digital ecosystem
The platform’s users will be able to access UPI payments integrated with Zaggle’s multi- wallet prepaid cards, including meal and fuel cards, enabling quick, on-the-go transactions, said Zaggle in a statement
Listed fintech SaaS startup Zaggle
The move will now allow the startup to offer Unified Payments Interface (UPI) services directly through its platform, empowering over 3 Mn users across its digital ecosystem.
For the uninitiated, TPAP licence allows a company to offer UPI services to users via a payment system provider (PSP) bank.
The licence will also let Zaggle offer a comprehensive financial suite, including payments, expense management, tax-saving tools and value-added financial services within a single interface, the company said in a statement.
“Securing the TPAP approval marks a significant milestone in our journey to build India’s most comprehensive and seamless FinTech ecosystem. From instant expense reimbursements and streamlined insurance payments to recurring SIP mandates and much more, UPI integration will redefine the user experience across every financial interaction,” said Zaggle founder Raj P. Narayanam.
The platform’s users will be able to access UPI payments integrated with Zaggle’s multi- wallet prepaid cards, including meal and fuel cards, enabling quick, on-the-go transactions.
It will further offer embedded financial services such as credit lines on UPI, personal loans and fixed deposits to mutual fund investments, BBPS utility bill payments, and OPD healthcare wallets through UPI rails.
Founded in 2011 by Narayanam, Zaggle offers a spend management and corporate employee benefits platform which helps businesses automate their accounts and issue prepaid cards. Its portfolio of SaaS products also includes tax and payroll software.
The listed fintech has been on an acquisition spree for quite some time to expand its offerings and boost growth.
Last month, Zaggle informed bourses of its plans to acquire a 45.33% stake in point of sale (PoS) software solutions provider Effiasoft for INR 36.72 Cr in an all-cash deal.
The startup said it received the approval from its board to acquire the stake from Effiasoft cofounders Koushik Shee and Akula Krishna Rao in an exchange filing
The acquisition was aimed at leveraging Effiasoft’s expertise to enhance its tech stack by “accelerating product development, improving operational efficiency, strengthening payment processing capabilities, increasing merchant engagement, and driving digital transformation in the fintech space”.
In March, Zaggle acquired an additional 12.34% stake in digital payments service provider Mobileware Technologies for INR 7.25 Cr.
On the financial front, 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. Its operating revenue zoomed 69% to INR 336.89 Cr in the reported period from INR 199.51 Cr in Q3 FY24.
Zaggle’s stock closed the trading session today 0.14% up at INR 332.95 on the BSE.
