Zaggle Shares Rally 5% On Strong Q2 Results

Shares of Zaggle jumped almost 5% in early trading hours today (November 14) to INR 431.20 apiece on the BSE on strong Q2 FY25 earnings. 

The fintech SaaS company posted a consolidated net profit of INR 20.3 Cr in the September quarter of the financial year 2024-25 (Q2 FY25), marking a robust 168% year-on-year growth.

Operating revenue zoomed 64.21% to INR 302.55 Cr in Q2 FY25 from INR 184.24 Cr in the corresponding quarter last year.

At 10:38 AM, Zaggle shares were trading at INR 428.80 apiece on the BSE, up 4.41% from the stock’s previous close. The stock has jumped almost 97% year-to-date, significantly outperforming the BSE Sensex, which has climbed 7.5% during the period.

Founded in 2011 by Raj Narayanam, Zaggle provides a spend management and corporate employee benefits platform. It helps businesses automate their accounts and issue prepaid cards, in partnership with banking partners, to reward their employees.

Zaggle offers a diverse portfolio of SaaS products, including tax and payroll software. It claims to have issued 50 Mn prepaid cards in India and served over 3.03 Mn users as of September 30, 2024. 

This comes days after Zaggle received approval from its board to raise INR 950 Cr to fuel its expansion plans.

In an investor presentation, Narayanam said that the company was strongly focusing on strategic mergers and acquisitions with a combined strategy of small tuck-ins and larger investment opportunities, in the SaaS fintech sector, including areas like NBFC, payments etc.

Further, Zaggle has been signing new partnerships and expanding its services. Earlier this year, it partnered with Open Network for Digital Commerce (ONDC) to facilitate issuance of prepaid payment instruments to the latter’s customers. 

Recently, it also inked a pact with Hero MotoCorp to offer the auto giant its employee expense management platform – Zaggle Save. 

In September, Zaggle acquired a 26% stake in Mobileware Technologies (now known as ‘86400’) for INR 15.6 Cr. 

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