Synopsis:
Zaggle has partnered with Mastercard Asia/Pacific to launch co-branded domestic prepaid cards. The agreement runs from September 22, 2025, to September 30, 2030, with Mastercard providing incentives for promotion.
The shares of the Small-Cap company, specializing in providing spend management solutions and financial technology products, jumped by upto 5 percent upon signing an agreement with Mastercard Asia/Pacific.
With a market capitalization of Rs. 4,886.85 Crores on Tuesday, the shares of Zaggle Prepaid Ocean Services Ltd rose by 5.2 percent after making a high of Rs. 373.40 compared to its previous closing price of Rs. 354.90. Ace investor Ashish Kacholia holds a 2.2 percent stake in Zaggle Prepaid Ocean Services Limited, consisting of 30.03 lakh shares as of June 2025.
What Happened
Zaggle Prepaid Ocean Services Ltd, engaged in providing spend management solutions and financial technology products, has announced that it has entered into an agreement with Mastercard Asia/Pacific Pte. Ltd., an international entity.
Under this agreement, Mastercard will incentivize Zaggle to launch and promote co-branded domestic prepaid cards on the Mastercard network. The collaboration is formalized through a Customer Business Agreement and is considered a domestic transaction.
The agreement becomes effective from September 22, 2025, and will remain valid until September 30, 2030. This strategic partnership aims to enhance Zaggle’s product offerings and strengthen its position in the domestic prepaid card market.
Financials & Others
The company’s revenue rose by 31.43 percent from Rs. 252 crore to Rs. 331 crore in Q1FY25-26. Meanwhile, the Net profit rose from Rs. 17 crore to Rs. 26 crore during the same period.
The company has demonstrated strong financial performance, delivering a profit growth of 88% CAGR over the last five years. Additionally, with a very low debt-to-equity ratio of 0.01, it maintains a nearly debt-free balance sheet.
Zaggle Prepaid Ocean Services Limited was established in 2011 and is a financial technology company specializing in business spend management solutions. Headquartered in Hyderabad, Telangana, it serves corporates, SMEs, and startups by automating and digitizing workflows related to expense management, employee benefits, rewards, recognition, corporate gifting, and incentives.
The company offers SaaS and FinTech solutions to help businesses manage spending, payments, and rewards. Its key platforms include Zaggle SAVE for employee expenses, Zaggle Propel for channel partner rewards, Zaggle Zoyer for vendor payments, and ZatiX for smart spend analysis.
It has a strong customer base with over 3,400 corporate clients and more than 3.2 million users. The company has issued over 50 million cards through partnerships with around 16 banks.
The company has recently onboarded major clients such as Indus Towers, Honasa Consumer (Mamaearth), Forbes Marshal, Truecaller International, Aster DM Healthcare, Tech Mahindra, Physics Wallah, Zepto, Wonder Home Finance, and others, boosting its presence across the telecom, consumer goods, healthcare, education, and fintech sectors.
Guidance: For FY26, Zaggle Prepaid Ocean Services Limited expects standalone revenue to grow by 35–40 percent, and if all planned acquisitions close by September, consolidated growth could reach around 80 percent. Over the long term, it aims for $1 billion in annual revenue.
The company’s EBITDA margins are guided to 10–11 percent next year (up from 9–10 percent in FY25), with a target of 12–15 percent within 3–4 years, improving by about 1 percentage point each year.
Written by Sridhar J
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
