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

Zaggle's robust customer demand and ever-developing market leadership in the spend management space have enabled it to present healthy financial figures, states Avinash Godkhindi, MD and CEO of Zaggle Prepaid Ocean Services Ltd.

The company has achieved an impressive 113 per cent year-on-year growth in revenue for Q1FY25. Additionally, the net profit soared to Rs 16.72 crore, up from Rs 2.05 crore in the same quarter last year. What were the key drivers behind this remarkable success?

Zaggle's remarkable success in Q1 FY25, with a 113 per cent year-on-year revenue growth and a net profit increase to Rs 16.72 crore, is driven by several key factors. The primary drivers include a significant rise in credit card transaction volumes, strong performance from the business spend management platform, Zoyer, and the acquisition of new clients with large user bases. Zaggle's strategic approach of identifying and prioritising high-impact use cases, such as the fleet management solution, has been a key factor contributing to performance and growth.

Zaggle's robust customer demand and ever-developing market leadership in the spend management space have enabled it to present healthy financial figures.

Could you please provide the segment-wise contribution and explain how the changed product mix has been beneficial?

The overall growth is largely driven by the demand for Zoyer and credit card bundled solutions. The shift in product mix has been beneficial as it has allowed us to cater to a broader range of client needs, enhancing revenue streams and reducing dependency on any single product. This diversification has strengthened Zaggle's market position and enabled us to respond effectively to customer demands and market dynamics

What are the top three strategic priorities the company is currently focusing on, and how does it plan to achieve its goal of doubling revenue within the next two years?

We are focusing on three strategic priorities to achieve the goal of doubling revenue within the next two years:

• Inorganic Growth: We are exploring acquisitions and partnerships in the spend management space to enhance the leadership position and scale operations.
• Customer Base Expansion: Efforts are being made to increase the customer base by deeper penetration into existing accounts, as well as cross-selling.
• Innovation and Product Development: Continuous innovation in existing products, particularly Zoyer and credit card solutions, is essential for maintaining a competitive edge and attracting new customers.

How are the recent strategic alliances with Wipro and PNB MetLife India Insurance expected to benefit the business?

The strategic alliances with Wipro and PNB MetLife India Insurance are set to significantly benefit Zaggle's business by enhancing its service offerings and expanding its market reach. Through a one-year service agreement, Zaggle will provide its benefits and expense management platform, Zaggle SAVE to Wipro. Similarly, by partnering with PNB MetLife, Zaggle aims to offer its expense management solutions to PNB MetLife, further penetrating the insurance sector. These alliances not only strengthen Zaggle's position as a trusted SaaS FinTech provider but also drive growth by enhancing service quality and broadening its customer base.

Could you provide insight into the AI-enabled bot, RazBot, developed by the company, and explain how the company's advanced Optical Character Recognition (OCR) capabilities will boost its operations?

Zaggle's AI-enabled bot, RazBot powered with NLP which is natural language processing, and machine learning to auto-detect intent from a user's query and intelligently map these queries to a body of knowledge. It is designed to automate customer interactions and streamline operations, thereby enhancing operational efficiency.

Advanced Optical Character Recognition (OCR) capabilities can significantly improve data processing for invoices and receipts. This technology enables faster and more accurate handling of financial documents, which is crucial for the accounts payable platform.

As a result, these advancements will not only reduce operational costs but also provide a smoother and more efficient user experience for customers. We intend to increase the usage of our AI bot across different business functions to enable intelligent decision-making.