Zaggle To Pick Up Additional 17% Stake In Mobileware Technologies

Listed fintech SaaS company Zaggle’s board has approved the acquisition of an additional 16.67% stake in digital payments service provider Mobileware Technologies Private Limited in a cash deal.

However, the company did not disclose the financial terms of the deal.

“Consequent to this proposed acquisition, Zaggle shall acquire the equity shares equivalent to 16.67% of issued and paid up capital of Mobileware,” the company said in a regulatory filing.

The deal is expected to complete within the period of 90 days from the date of approval by the Zaggle’s board, the filing also said.

Mumbai-based Mobileware offers products to enable payments via UPI, IMPS, BBPS and AePS. The company also has an API banking platform TransXT (known as ‘Bank In A Box’) which facilitates digital transactions and provides its payment services to more than 80 banks and 20 fintech companies. 

Zaggle further said that it would use the digital payments platform’s expertise and infrastructure to enhance its offerings for its clientele, while also co-create solutions for lending, credit and card management services.

Zaggle initially acquired 26% stake in Mobileware for INR 15.6 Cr, in September 2024, with similar objectives.

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. 

This development comes on the back of the fintech major reporting its third quarter earnings. Its net profit jumped 30% to INR 19.74 Cr in Q3 FY25 from INR 15.22 Cr, a year ago. Also, Zaggle’s operating revenue surged 69% to INR 336.89 Cr in the quarter under review from INR 199.51 Cr in the previous year.

Shares of the company closed at INR 472.00 on Friday, while its stock gained 75.5% in the past 12 months.

Updated at 10:28 AM