Shares of a fintech SaaS startup rose 6.86% to INR 461.55 in Thursday’s early trade. The tock, however, pared some of its gains later.
Zaggle board has approved acquiring a 98.32% stake in Span Across IT Solutions, making it a subsidiary, subject to procedural completion
Zaggle has also acquired a 26% stake in Mobileware Technologies (now known as ‘86400’) for INR 15.6 Cr
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Shares of fintech SaaS startup Zaggle rose 6.86% to reach INR 461.55 apiece in Thursday’s early trade (September 26) after it announced the acquisitions of two companies — Span Across IT Solutions and Mobileware Technologies. However, the stock later shed some gains and was trading at INR 444.9 at 11:58 am. The stock ended Wednesday’s trade at INR 431.90 apiece.
Notably, the board of directors of Zaggle Prepaid Ocean Services, in a meeting held on Wednesday, September 25, 2024, approved the acquisition of 10,66,314 equity shares with a face value of INR 10 each at a price of INR 300.80 per share (including a premium of INR 290.80 per share), representing a 98.32% stake in Span Across IT Solutions.
Consequently, Span Across will become a subsidiary of Zaggle following the completion of the necessary procedural requirements.The proposed acquisition provides an opportunity to enter a new segment of employee-related business, the company stated.
Founded in 2007, Span Across deals in online income tax return preparation services and development of software. It reported INR 4.73 Cr revenue in financial year 2023-24 (FY24).
“Span Across will become a subsidiary company with 98.32% stake and this will help in achieving inorganic growth which will benefit all the stakeholders associated with the Company, including shareholders at large,” the company said in an exchange filing.
Meanwhile, Zaggle also announced that it acquired a 26% stake in Mobileware Technologies (now known as ‘86400’) for INR 15.6 Cr.
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. With the acquisition, Zaggle is eying to tap into 86400’s expertise and infrastructure to improve its payment offerings.
“This strategic investment will not only strengthen our offerings but also create new opportunities to co-develop advanced solutions that place payments at the core of our clients’ business needs,” Zaggle founder and executive chairman Raj Narayanam said.
Founded in 2011 by Narayanam, Zaggle provides a spend management platform for businesses, along with an employee benefits platform. It has a diversified portfolio of SaaS products, including tax and payroll software. The company made its stock market debut in September 2023.
Zaggle registered a significant 153% YoY jump in net profit to INR 19.2 Cr in the March quarter (Q4) of the financial year 2023-24 (FY24). Boosted by increased income from SaaS subscriptions, program fees, and revenue generated by its employee rewards solutions platform, Propel, the company also recorded its highest-ever quarterly operating revenue of INR 273.4 Cr. This represents a 46.3% increase from the INR 186.8 Cr reported in Q4 FY23.
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