The shares of a small-cap fintech software company rose by 4% after signing an agreement with Equinox India Pvt Ltd, to provide Saas platform for managing employee and engagement programs.
Share price variations:
With a market capitalization of Rs. 5,247.57 crores, Zaggle Prepaid Ocean Services Ltd. surged to an intraday high of Rs. 441.40, marking a 4% increase from its previous close of Rs. 424.30 per share.
As per the June quarter, Ashish Kacholia publicly holds a 2.37% stake in the company amounting to 29,03,356 equity shares valuing Rs. 123.61 crores.
Reason for the Rise:
As per the exchange filings, Zaggle Prepaid Ocean Services Ltd has entered into an agreement with Equinox India Pvt Ltd, formerly Indiabulls Real Estate Limited for the use of the Zaggle Propel reward platform.
Zaggle Propel is an all-in-one solution for employee rewards and channel partner incentives. The agreement is valid for one year and will automatically renew each subsequent year.
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Recent Orders Received:
The company has recently entered into agreements with HDFC Ergo General Insurance Company Limited, for the use of the Zaggle Propel reward platform and companies like Blue Star Ltd, Hero motocorp Ltd, PNB MetLife India, Eversub India, Baroda BNP Paribas, Wipro and Yokohama India to use Zaggle Save an Expense Management & Employee benefits platform.
Recent Acquisitions and Investments:
In September the company acquired a 98.32% stake in Span Across IT Solutions Private Limited a company that deals in online income tax return preparation services and development of software and acquired a 26% stake in Mobileware Technologies Private Limited which deals in Digital Payments Infrastructure.
Financial Performance:
For Q1FY25 the company reported a net profit increase of 711% to Rs. 16.72 crores compared to Rs. 2.06 crores in Q1FY24, while revenue from operations
also marked an increase of 112% to Rs. 252.21 crores from Rs. 118.48 crores in comparison to the same period. The share has given a return of 45% in the last 6 months and a multi-bagger return of almost 100% in the past year.
About the company:
Zaggle Prepaid Ocean Services Ltd is a B2B2C Fintech SaaS company, and a major player in the Issuer of Prepaid cards in India and spend management space.
The company generates revenue by way of software fees, program fees, and propel platform revenue.
Key products of the company include SAVE – a platform that offers expense management solutions for business spend management, facilitating digitized employee reimbursements and tax benefits, PROPEL – a platform for channel rewards and incentives and ZOYER- An accounts payable platform.
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Written By: Joseph Pv
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