In conversation with Avinash Godkhindi, MD and CEO of Zaggle Prepaid Ocean Services Ltd

As AI algorithms become more sophisticated, they will play a pivotal role in shaping the future of financial services, voices Avinash Godkhindi, MD and CEO of Zaggle Prepaid Ocean Services Ltd.

The company has achieved its highest-ever quarterly revenue of Rs 199.51 crore, marking a 35 per cent year-on-year growth, alongside reporting a remarkable 175 per cent increase in EBITDA. What factors contributed to this impressive performance?

Zaggle's exceptional performance in achieving its highest-ever quarterly revenue of Rs 199.51 crore, with a notable 35 per cent year-on-year growth, and a remarkable 175 per cent increase in EBITDA, can be attributed to several key factors. 

Firstly, we have strategically diversified our product portfolio, notably with the successful launch of credit card offerings along with revenue contribution from Zoyer has experienced significant growth, which has significantly contributed to revenue growth. 

Furthermore, it goes without a doubt that effective cost management, including a reduction in finance, costs post-debt prepayment and increased other income from higher interest income following our IPO, have led to profitability. Leveraging an efficient end-to-end closed-loop system, we tapped into India's expansive fleet spending market, estimated at Rs 73,000 crore. 

Lastly, our company's performance reflects the growing market demand for our innovative spend management solutions, reinforcing our position at the forefront.

Could you provide some insight into the company's services, particularly focusing on 'Zoyer,' which has seen a substantial increase in revenue contribution?

Speaking about our core product portfolio encompasses a range of innovative solutions tailored to meet diverse business needs. They include 'Propel' for channel rewards and incentives, 'Save' for expense management, 'CEMS' for customer engagement management, 'Zaggle Payroll Card' for prepaid payroll solutions, and 'Zoyer' for business spend management.

Among these, 'Zoyer' stands out as a significant contributor to our company's revenue growth in this quarter. It is an integrated, data-driven business spend management platform. It offers embedded automated finance capabilities within core invoice-to-pay workflows. 

This comprehensive solution enables businesses to streamline their financial operations, optimize spending, and enhance overall efficiency. The substantial increase in revenue contribution from Zoyer reflects its effectiveness in addressing the evolving needs of businesses, driving greater adoption, and delivering tangible value to clients.

Can you shed some light on the company's recent venture into the fleet market, involving the signing of a contract with Torrent Gas for a Rs 200 crore closed-loop card fleet royalty program?

Our significant foray into the fleet market through a ground-breaking partnership with Torrent Gas Ltd was a proud moment for us. This landmark contract, valued at Rs. 200 crore signifies our entry into the Close Loop Card-Fleet Loyalty Program. This idealistic move reflects our commitment to exploring new avenues for growth and diversification. 

By partnering with Torrent Gas Ltd., we aim to utilize the immense potential of India's fleet spending market, estimated at Rs 73,000 crore. This initiative will align with our vision to innovate and expand our product offerings, ensuring we remain at the forefront of the fintech industry. We're also looking forward to the opportunities this collaboration will present and enable us to deliver value to our clients and stakeholders.

What are the top three strategic priorities currently being focused by the company?

As a company, our primary focus lies on three strategic priorities aimed at driving our growth and maintaining our leadership position in the fintech and spend management industry. 

Firstly, we are dedicated to continuous innovation and diversification of our product offerings to stay ahead of market trends and meet the evolving needs of our clients. Secondly, we are actively expanding our client base and market reach, both locally and globally, through strategic partnerships and robust client engagement strategies. Eventually, we are committed to operational excellence by optimizing internal processes and making use of technology to ensure seamless service delivery. 

These strategic priorities guide our efforts as we strive to achieve sustainable growth and success in the competitive fintech landscape.

What are your thoughts on the future of the fintech industry in India, and how do you believe AI could potentially revolutionise the fintech market?

The future of the fintech industry in India appears promising, with continued growth driven by factors such as increasing digital adoption, government initiatives, and a burgeoning startup ecosystem. AI holds immense potential to revolutionise the fintech market by enhancing customer experiences, automating processes, and improving risk management. 

AI-powered solutions can enable personalised financial services, streamline operations, and detect fraudulent activities more effectively. As AI algorithms become more sophisticated, they will play a pivotal role in shaping the future of financial services, empowering companies to deliver innovative solutions and stay competitive in an increasingly digital world.