Zaggle Prepaid Ocean Services , a leading fintech company, has reported exceptional financial results for the first quarter, showcasing robust growth across key metrics.

Strong Revenue Growth

The company delivered an impressive 113% year-on-year increase in revenue, reaching Rs. 252.20 crores compared to Rs. 118.40 crores in the same period last year. This substantial growth underscores Zaggle's strong market position and successful business strategies.

Profitability Boost

Adjusted EBITDA saw a significant uptick, rising by 85% to Rs. 25.50 crores from Rs. 13.80 crores in the previous year. This improvement in profitability indicates the company's ability to scale efficiently while managing costs.

Customer Acquisition and Future Outlook

Zaggle continues to expand its customer base, adding 100 new clients during the quarter. The company maintains its revenue guidance, projecting a growth rate of 45-55% for FY25. Looking further ahead, Zaggle aims to double its FY24 revenues of Rs. 775.00 crores within the next two years.

Zoyer: A Key Growth Driver

Zoyer, Zaggle's accounts payable solution, has emerged as a significant contributor to the company's success. It accounted for approximately 40% of program fees this quarter and is expected to represent 40-50% of total revenue by FY26-27.

Strategic Expansion Plans

Zaggle is actively exploring acquisition opportunities and considering entry into the US market through both organic and inorganic routes. This strategic approach aims to fuel further growth and expand the company's global footprint.

Workforce Expansion

To support its growth trajectory, Zaggle has significantly increased its workforce. The employee count rose from 303 in March to over 360 by the end of the quarter, reflecting the company's commitment to scaling its operations.

Financial Performance Overview

Zaggle Prepaid Ocean Services' strong performance in Q1 positions the company for continued growth and expansion in the fintech sector. With its focus on innovative solutions like Zoyer and strategic growth initiatives, Zaggle appears well-equipped to capitalize on the evolving financial technology landscape.

Zaggle Prepaid Ocean Services Limited has announced two significant business developments, expanding its portfolio of strategic partnerships in the rewards and loyalty sector.

Agreement with Pernod Ricard India

Zaggle has signed a 3-year agreement with Pernod Ricard India Private Limited, centered around Zaggle's Propel Reward Platform.

Key Details of the Pernod Ricard Agreement

• Duration: The contract is set for a 3-year term.
• Service Offered: Zaggle will provide its Propel Reward Platform to Pernod Ricard India.
• Nature of Contract: The agreement is classified as domestic.

New Master Agreement with Blink Commerce

In addition to the Pernod Ricard deal, Zaggle has entered into a master agreement with Blink Commerce Private Limited.

Key Details of the Blink Commerce Agreement

• Duration: The agreement spans a 2-year execution period.
• Service Offered: Zaggle will provide Blink Commerce with the Zoyer Solution.
• Nature of Contract: This is also a domestic agreement.

Business Implications

These partnerships potentially open up new avenues for Zaggle in the corporate rewards, loyalty program, and prepaid services markets. The agreements with Pernod Ricard India, a prominent player in the alcoholic beverages industry, and Blink Commerce, likely expand Zaggle's client portfolio and market reach.

Regulatory Compliance and Transparency

In adherence to regulatory requirements, Zaggle has made the following disclosures for both agreements:

• The agreements do not involve any related party transactions.
• There is no interest from Zaggle's promoter, promoter group, or group companies in either Pernod Ricard India or Blink Commerce.
• The contracts have been executed at arm's length, ensuring fair business practices.

Management Statement

Avinash Ramesh Godkhindi, Managing Director and Chief Executive Officer of Zaggle Prepaid Ocean Services Limited, signed off on the regulatory filings, underlining the company's commitment to transparency and compliance with SEBI regulations.

These strategic partnerships underscore Zaggle's growing presence in the prepaid and corporate services sector, potentially enhancing its market position and client portfolio.