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Zaggle Prepaid Ocean Services: Strategic alliances & Financial growth

Zaggle prepaid ocean services

Zaggle Prepaid Ocean Services Limited (ZPOSL) has established itself as a leading player in the financial sector, distinguished by its strategic alliances and strong financial performance.

Since its inception, ZPOSL has been dedicated to providing innovative fintech solutions to corporate clients across various industries. Specialising in prepaid cards and software-as-a-service (SaaS) solutions, ZPOSL caters to the business-to-business-to-customer (B2B2C) segment, offering comprehensive expense management, rewards, and customer engagement solutions.

From its debut on Indian stock exchanges in September 2023 at ₹158 per share, the company’s stock has more than doubled. It is currently trading at ₹340.40 per share on the NSE, hitting an all-time high, reflecting investor confidence and optimism in its future prospects.

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Strategic partnerships fuel growth

A series of strategic partnerships with key players in various industries buoy Zaggle’s meteoric rise. Recently, the company inked agreements with Nishi Forex, Benetton India, Emcure Pharmaceuticals, Wipro, and Easy Trip Planners Limited. These collaborations unlock new revenue streams and enhance Zaggle’s market presence across diverse sectors.

The partnership with Wipro involves providing a year for the Zaggle Save proposition, a benefits and expense management platform. Similarly, agreements with Emcure Pharmaceuticals and Benetton India signify the rollout of the Zaggle Save proposition, enhancing expense management capabilities for these entities. 

Moreover, Zaggle’s collaboration with Nishi Forex positions it as a co-brand partner, facilitating sales and distribution activities coupled with Zaggle’s expense management services, thereby driving card spending and software usage.

Financial highlights

Zaggle’s robust financial performance further fortifies its growth trajectory. The company reported a substantial 92.7% increase in net profit for the third quarter of FY24, soaring to ₹19.5 crore compared to ₹10.1 crore in the year-ago period. 

This remarkable growth can be attributed to higher other-interest income and reduced finance costs post-IPO. Additionally, the adjusted operating profit (EBITDA) surged by 56.4% to ₹22.86 crore in the third quarter, highlighting Zaggle’s operational efficiency and financial resilience.

ParticularsQ3FY24FY23FY22FY21
Revenue from operations₹1,995.1₹5,534.60₹3,712.55₹2,399.66
Gross Profit₹1,024.1₹2,328.37₹2,259.69₹2,087.87
Adjusted EBITDA₹228.6₹625.09₹598.54₹276.27
Other Income₹44.7₹11.15₹4.09₹3.27
Profit before Tax₹209.0₹316.35₹511.78₹181.98
Tax₹56.8₹87.34₹92.57(₹11.32)
Profit After Tax₹152.2₹229.01₹419.21₹193.30
EPS – Basic (₹)₹1.47₹2.48₹4.57₹2.11
Profit & Loss (All Figures in ₹ Million Adjusted EPS in Rs.)

Expansion and diversification

Zaggle’s strategic partnerships not only enhance revenue streams but also lay the foundation for growth and diversification. The company’s commitment to evolving market needs is reflected in its integrated travel and expense management solutions with Easy Trip Planners Limited.

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Additionally, Zaggle’s expanding presence and diverse client base is evident through its agreement with Quess Corp Limited and contracts with Axis Bank and Lifestyle International Private Limited.

Investor confidence and shareholding

Zaggle’s impressive performance has garnered significant attention from investors. Currently, 55% of Zaggle’s shareholding belongs to public shareholders, reflecting widespread investor participation and confidence in the company’s growth potential. 

Notably, ace investor Ashish Kacholia holds substantial confidence in Zaggle’s long-term prospects.

Share HoldersPercentage
Promotors44.07%
Public36.64%
FII12.19%
DII7.4%
Others0%
Share Holding Pattern

Conclusion

In conclusion, Zaggle Prepaid Ocean Services Limited’s remarkable ascent in the financial markets is underpinned by strategic alliances, robust financial performance, and a commitment to innovation and expansion. 

With a diversified portfolio of fintech products and services, coupled with strong investor confidence, Zaggle is well-positioned to capitalise on emerging opportunities in the dynamic fintech landscape, driving sustainable growth and value creation for its stakeholders.

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Hunny Meghani

A curious mind, a love for writing, and a passion for all things finance - that's me in a nutshell. Whether I'm exploring the latest stock market trends or diving into the nitty-gritty of personal finance, marketing, and AI. I'm always on the hunt for the next big story.

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