Zaggle PrePaid Ocean Services Limited has entered into a strategic 3-year agreement with Blue Star Limited to provide employee expense management and benefits services. The company disclosed this development to stock exchanges, in compliance with SEBI listing regulations.

Agreement Details

The partnership involves Zaggle PrePaid Ocean Services providing its Zaggle Save platform to Blue Star Limited, focusing on employee expense management and benefits administration. This domestic agreement strengthens Zaggle's position in the corporate services sector by adding Blue Star Limited to its client portfolio.

Regulatory Compliance

The agreement has been structured to ensure full regulatory compliance, with no related party transaction implications. Key compliance aspects include:

• No promoter or promoter group interest in the contracting entity
• No related party transaction considerations
• Arms-length commercial terms maintained
• Full disclosure under SEBI listing regulations

Business Impact

This agreement represents a significant business development for Zaggle PrePaid Ocean Services Limited, expanding its corporate client base with an established company like Blue Star Limited. The 3-year duration provides revenue visibility and demonstrates client confidence in Zaggle's employee expense management solutions.

The partnership aligns with Zaggle's strategy to strengthen its presence in the corporate services market through its comprehensive expense management and benefits platform. The domestic nature of the agreement reflects the company's focus on serving Indian corporate clients with tailored solutions.

Zaggle prepaid ocean services Limited has received a credit rating reaffirmation from CARE Ratings Limited, maintaining its CARE A-; Stable rating for long-term bank facilities worth ₹100.00 crore. The rating agency announced this decision on March 04, 2026, citing the company's strong market position and robust financial performance in the digital expense management solutions space.

Rating Details and Rationale

CARE Ratings reaffirmed the rating based on several key strengths, including Zaggle's established market presence, robust growth trajectory, and comfortable financial risk profile. The rating reflects the company's strong partnerships with network partners and diverse revenue streams comprising interchange fees, reward points redemption, and software product revenues.

Strong Financial Performance

The company demonstrated impressive revenue growth, with total operating income rising consistently over the past five years. Revenue increased from ₹775.60 crore in FY24 to ₹1,302.65 crore in FY25, representing significant year-on-year growth driven by expanding user base and customer acquisition.

Market Position and Customer Base

Zaggle provides comprehensive spend management solutions through a unified platform integrating employee benefits, expense management, accounts payable, and personal finance tools. The company serves over 3,700 corporate customers with more than 3.5 million platform users across diverse industry segments including banking, technology, healthcare, manufacturing, FMCG, infrastructure, and automotive sectors.

The company's three major revenue streams include:

• Propel Platform Revenue (PPR): Generated through monetizing 'Propel Points' reward system
• Programme Fee Revenue (PFR): Zaggle's portion of interchange fees from banking partners
• SaaS Fee Revenue (SFR): Periodic subscription fees for software usage

Key Rating Strengths

CARE Ratings highlighted several positive factors supporting the rating reaffirmation. The company maintains strong partnerships with all major payment networks including VISA, MasterCard, and RuPay, ensuring comprehensive market coverage. Zaggle's customer base spans well-established brands with strong financial profiles, resulting in low counterparty credit risk.

The rating agency noted the company's comfortable capital structure with overall gearing improving significantly to 0.01x in FY25 from 0.15x in FY24. The interest coverage ratio enhanced markedly to 15.09x in FY25 from 5.15x in FY24, reflecting improved debt servicing capability supported by term loan repayments and fresh equity inflow through qualified institutional placements.

Areas of Concern

Despite the positive rating reaffirmation, CARE Ratings identified certain constraints including moderate profitability margins due to high revenue contribution from reward point redemptions, which are essentially pass-through transactions. The company also faces risks associated with acquisition-led growth, regulatory changes, and continued dependence on third-party network partners.

The stable outlook indicates CARE Ratings expects Zaggle to benefit from steady revenue growth, healthy financial risk profile, and well-established customer relationships while maintaining its strong market position in the digital expense management solutions sector.

Source: None/Company/INE07K301024/d17ca2aa-ca93-4d92-b201-9f798de370b9.pdf