1. At a Glance
Zaggle is what happens when you cross an HR expense policy, a corporate prepaid card, and a fintech marketing deck. Headquartered in Hyderabad, it claims the title of India’s #1 prepaid card issuer with 50+ million cards in circulation, partners with every major bank from SBI to Yes Bank, and throws in AI bots (RazBot) for flavour. FY25 revenue? ₹1,384 crore. Profit? ₹97.3 crore. Debt? Practically negligible at ₹19.9 crore — just enough to keep the banker’s number in your phone.
2. Introduction
Founded at the intersection ofSaaS and Fintech(translation: software subscription fees + transaction fees = recurring cash), Zaggle caters to corporates, SMEs, and startups trying to tame their business expense chaos.
The pitch: Automate expense management, reward employees, issue co-branded payment cards, and sprinkle in analytics so the CFO feels like Tony Stark with Excel.
The reality: Rapid revenue growth (52% TTM), healthy PAT growth (66% TTM), and a product portfolio that ranges fromcorporate credit cardstovendor management platforms. The client list reads like a who’s-who of corporate India — Tata Steel, Persistent, Greenply, Hiranandani — and the partnerships list is basically a fintech networking event.
3. Business Model (WTF Do They Even Do?)
- Core Platforms:
- Propel:Rewards & engagement platform (54% FY24 revenue).
- Program Fees:Transaction-based income from prepaid & co-branded cards (42%).
- Software Fees:SaaS subscriptions for expense management tools (4%).
- Recent Innovations:
- RazBot— AI-enabled bot for automated workflows.
- Zoyer— Vendor management + corporate credit card issuance platform.
- Strategic Partnerships:
- Banks: Kotak, IndusInd, Axis, SBI, Yes Bank.
- Networks: Visa, Mastercard, RuPay.
- Value-add: PNB MetLife, Wipro, DBS, Founderlink (loans).
Think of Zaggle as a
financial Swiss Army knife for businesses — swipe, approve, analyse, repeat.
4. Financials Overview
| Metric | Latest Qtr (Jun’25) | YoY Qtr (Jun’24) | Prev Qtr (Mar’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 332 | 252 | 412 | 31.6% | -19.4% |
| EBITDA (₹ Cr) | 30 | 22 | 36 | 36.4% | -16.7% |
| PAT (₹ Cr) | 26.1 | 16.7 | 31 | 56.0% | -15.8% |
| EPS (₹) | 1.95 | 1.37 | 2.32 | 42.3% | -15.9% |
Commentary:Strong YoY growth, slight QoQ cooling — possibly post-festive corporate travel budgets drying up. Margins steady at ~9% OPM.
5. Valuation (Fair Value RANGE only)
Method 1: P/E
- TTM EPS: ₹7.39
- Industry P/E: ~31
- Fair value (Industry multiple): ₹230
- Current P/E: 50.6 → Premium pricing due to growth.
Method 2: EV/EBITDA
- EV: ₹4,292 Cr
- EBITDA (TTM): ₹122 Cr
- EV/EBITDA: 27.4x vs peer avg ~20–25x.
Method 3: DCF (Simplified)
- Assume FCF growth 20% for 5 years, then 10% for 5 more, discount at 12%.
- Range: ₹320–₹380.
Educational FV Range:₹300–₹360.This FV range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
- IPO + QIP Funds:₹392 Cr (IPO) + ₹595 Cr (QIP) — all
