Zaggle Shares Hit A Fresh All-Time High At INR 522

Shares of Zaggle Prepaid Ocean Services jumped over 3% during the intraday trading today (December 2) to reach a new all-time high at INR 522 apiece on the BSE.

The stock climbed as much as 3.43% to hit a fresh lifetime high in early trading hours. However, it pared some of the gains later and was trading 1.65% higher at INR 513 at 12:45 PM.

Amid a surge in its share prices, the company’s market capitalisation zoomed to INR 6,375.18 Cr around $765 Mn).

Zaggle shares have delivered strong returns to investors since its public listing in September 2023, with the stock rallying 218% from the IPO issue price of INR 164.

Founded in 2011 by Raj Narayanam, Zaggle provides spend management solutions and corporate employee benefits platforms. It claims to have issued 50 Mn prepaid cards and serves over 3.03 Mn users as of September 2024.

The company reported strong Q2 FY25 numbers, clocking a 168% year-on-year jump in consolidated profit after tax to INR 20.29 Cr. Operating revenue surged 64.21% YoY to INR 302.56 Cr during the quarter under review.

The Hyderabad-based company has been actively expanding through partnerships and acquisitions. It recently acquired a 98.32% stake in Span Across IT Solutions and picked up a 26% stake in Mobileware Technologies for INR 15.6 Cr.

Recently, the fintech SaaS company announced a referral partnership with MasterCard, under which the payment giant will recommend Zaggle’s SaaS platform and card products to corporate customers.

Besides MasterCard, Zaggle also partnered with Hero MotoCorp to offer its employee expense management platform – Zaggle Save. Earlier this year, it collaborated with ONDC to facilitate prepaid payment instruments.

Last month, Zaggle’s board approved plans to raise INR 950 Cr to fuel its expansion strategy, focusing on strategic mergers and acquisitions in the SaaS fintech sector.

In its latest investor presentation, Narayanam emphasized the company’s focus on strategic mergers and acquisitions, particularly targeting opportunities in NBFC and payments sectors.

The company has also revised its FY25 guidance upward, now expecting 50-55% revenue growth over FY24, backed by its expanding product portfolio and growing customer base.