Zaggle Prepaid Ocean Services Limited (NSE: ZAGGLE) has reported strong financial results for Q3 FY25 and the nine months ended December 31, 2024 (9M FY25). The company achieved its highest-ever quarterly and nine-month performance across key financial metrics.
Key Financial Highlights (Standalone)
Metric
Q3 FY25
YoY Growth
9M FY25
YoY Growth
Revenue from Operations
₹3,364 Mn
+68.6%
₹8,912 Mn
+77.4%
Adjusted EBITDA (before ESOP)
₹315 Mn
+37.6%
₹866 Mn
+48.2%
PAT
₹202 Mn
+32.9%
₹555 Mn
+123.3%
Cash PAT
₹262 Mn
+34.4%
₹720 Mn
+56.2%
Gross Profit Margin stood at 44.8%, slightly lower than Q3 FY24 (51.3%) due to increased costs.
Adjusted EBITDA Margin at 9.4%, down from 11.5% YoY.
PAT Margin at 6.0%, reflecting improved profitability.
Growth Drivers
Strong performance in program fees: Revenue surged by 54% YoY, driven by a growing prepaid and credit card portfolio.
Increased platform revenue: Propel revenue soared 87% YoY, benefiting from festive season spending.
Customer expansion: The client base expanded to 3,300+ corporate customers, with key deals including Blinkit, BigBasket, Mumbai Metro One, and Mahindra First Choice Wheels.
Strategic Developments & Investments
Qualified Institutional Placement (QIP)
Raised ₹5,950 Mn in December 2024 for inorganic expansion, debt repayment, and general corporate purposes.
Major Acquisitions
Mobileware Technologies Pvt Ltd.
Acquired 16.67% stake for an undisclosed amount.
Mobileware provides NPCI-certified digital payment solutions, including UPI, IMPS, AEPS, BBPS, and agency banking platforms.
The acquisition aims to enhance Zaggle’s embedded payments and lending stack.
Span Across IT Solutions Pvt Ltd.
Acquired 53.32% stake, making it a subsidiary.
Previously held 45%, which was remeasured at ₹22.75 Mn gain.
Strategic Partnerships
HDFC Bank: 3-year deal to offer Zaggle credit cards to corporate clients.
Mastercard: 7-year referral partnership to expand Zaggle’s market presence.
Strada India & TBO TEK Ltd.: Long-term partnerships to enhance SaaS-based offerings.
Market Positioning & Future Outlook
FY25 Revenue Growth Target:58-63% YoY.
Inorganic Expansion: Evaluating new M&A opportunities to accelerate growth.
Digital Payments Leadership: Strengthening its foothold in corporate spend management through diversified fintech solutions.
Conclusion
Zaggle Prepaid Ocean Services Ltd. has demonstrated robust financial growth, strategic acquisitions, and strong customer expansion. The QIP funding and acquisitions reinforce its position as a leading fintech firm in India’s digital payments sector. The company remains well-positioned for sustained growth and profitability in FY25.