From Startups to Big Banks: This Fintech Company is Taking Over the Payments Space with a 54 per cent Stock Surge!
A fast-growing fintech firm strengthens its position in corporate financial solutions.
Zaggle Prepaid Ocean Services Limited has been empanelled by Bank of India to provide fintech services. The contract includes user onboarding with KYC validation, a prepaid card issuance program, and card, user, transaction, and preference management via a mobile app. The agreement is valid for two years, starting from February 11, 2025.
Company Overview
Zaggle is a fintech company that offers financial solutions for corporates, SMEs, and startups. Headquartered in Hyderabad, the company operates at the intersection of SaaS and fintech, helping businesses automate and manage expenses efficiently.
Business and Clientele
Zaggle has served over 3,300 clients, including Tata Steel, Greenply, and Hiranandani. It partners with major banks like Kotak, IndusInd, Axis, SBI, and Yes Bank, while working with network providers such as Visa, Mastercard, and RuPay. Additionally, its corporate collaborations include Tata Capital, NSDL, and Wockhardt.
Q3 FY25 Performance
In Q3 FY25, Zaggle posted its highest-ever revenue and profit. The company’s revenue grew by 69 per cent year-on-year to Rs 3,364 crore. Adjusted EBITDA increased by 38 per cent to Rs 315 crore, with a margin of 9.4 per cent. Profit after tax (PAT) rose by 33 per cent to Rs 202 crore.
Strategic Collaborations and Expansion
Zaggle completed a Rs 5,950 crore Qualified Institutional Placement (QIP) to support its growth plans. It also signed a three-year partnership with HDFC Bank for credit card solutions and a long-term referral program with Mastercard. The company expanded its client base with brands like Blinkit, BigBasket, and Mumbai Metro One.
Stock Valuation
Zaggle has a market capitalization of Rs 5,025 crore and trades at a P/E ratio of 67.3, significantly higher than the industry average of 34.5. The company has a return on capital employed (ROCE) of 17.2 per cent and a return on equity (ROE) of 14.1 per cent. With a low debt-to-equity ratio of 0.11, the company has delivered a 54 per cent return to investors over the past year.
Disclaimer: The article is for informational purposes only and not investment advice.