### **Overview** Zaggle Prepaid Ocean Services Ltd is a leading Indian B2B2C SaaS-fintech company specializing in digital spend management solutions. Founded in 2011 and listed on BSE and NSE, Zaggle has evolved from a corporate gifting and prepaid card provider into a comprehensive, integrated platform for enterprise spend automation. The company combines proprietary software, embedded finance, and AI-driven insights to digitize and streamline business spending across employees, vendors, channel partners, and global operations. Zaggle operates through strategic partnerships with over **19 banks**, including HDFC, Axis, ICICI, AU Small Finance Bank, Standard Chartered, and IDFC First Bank, and has issued **over 50 million** prepaid and commercial credit cards. As of November 2025, it serves **3,600+ corporate clients** and **3.5 million+ users** spanning BFSI, healthcare, retail, manufacturing, logistics, and technology sectors. --- ### **Strategic Developments (Nov 2025)** #### **1. Expansion into Retail Payments and Co-Branded Cards** - **Retail Card Entry**: Launched a retail card segment via a strategic partnership with **AU Small Finance Bank**, marking a significant expansion into the consumer credit space. - **New Banking Partners**: Added **Standard Chartered Bank**, **AU Small Finance Bank**, and **Suryoday Small Finance Bank** to its partner network, increasing total bank partners to **19**. - **Co-Branded Cards**: Entered a retail co-branded credit card partnership with **AU Bank**, strengthening its value proposition alongside its existing YES Bank (Rio) arrangement. Plans to on-board **2–3 additional banks** by FY27 to scale this initiative. - **Program Manager Model**: Will act as a program manager for retail cards—handling product design, sales, and support—while **offloading credit risk and interest income to banks**, ensuring a capital-light, scalable model. #### **2. Global Expansion & Cross-Border Strategy** - **MENA & U.S. Market Entry**: Announced ambitious plans to expand into **MENA** and **U.S. markets** as part of a long-term global diversification strategy. An office is set to open in MENA within weeks. - **GIFT City Presence**: Establishing a footprint in **GIFT City** to support compliant **cross-border spend management solutions**, enabling international payroll, export payments, and forex transactions. - **Strategic Intent**: Aims to become a **global corporate spend operating system**, moving beyond India to leverage best practices from mature fintech ecosystems. #### **3. Product & Platform Innovations** - **Zaggle GlobalPay FOREX Card**: Launched in collaboration with **GlobalPay (formerly Wall Street FOREX)** at Global Fintech Fest 2025 to streamline foreign exchange for business travelers and companies. - **Mastercard & NSDL Prepaid Card**: Launched a prepaid payout card integrated with the **Propel platform** to simplify commission and incentive disbursements to channel partners. - **Multi-Payment Ecosystem**: Supports **commercial credit cards, prepaid cards, retail cards**, and **UPI**, creating a unified, seamless spend platform. - **AI Integration**: Leveraging prior experience in AI-driven workflows to enhance **expense validation, procurement automation, customer engagement**, and **fraud detection**. #### **4. Client Wins & Cross-Selling Momentum** - **Apollo Health**: Adopted the **Save** platform for employee expense management and the **BROME** module (within Zoyer) to manage recurring retail outlet spends. - **OfBusiness Group**: Expanded platform adoption by integrating **Zoyer** to optimize procurement and procure-to-pay efficiency. - **Cross-Selling Focus**: Proactively expanding usage across existing clients (e.g., **Tech Mahindra, Blinkit, Wipro**) by adding new modules such as BROME, Fleet, and ZIP. #### **5. M&A & Inorganic Growth** - **Acquisition Pipeline**: Plans to deploy **INR 430–440 crore** toward **2–3 acquisitions** focused on expanding product capabilities in **spend management, payments, and AI**. - **Upcoming Acquisitions**: Finalizing **Dice**, a company with advanced AI capabilities in spend analytics and automation, expected to accelerate international expansion. - **Past Acquisitions**: Successfully integrated **TaxSpanner** (tax services), **Mobileware** (payment infrastructure), and **Rio.money** (consumer credit), enhancing full-stack offerings. --- ### **Product Suite & Key Offerings** | **Product** | **Functionality** | **Status/Adoption** | |------------|-------------------|------------------------| | **Propel** | Channel incentives, employee rewards, gamification | 3+ year contracts with V-Mart, Godrej, Nuziveedu, NIC | | **Save** | Employee expense management, reimbursements, tax benefits | Core platform adopted by Apollo, Hitachi, House of Hiranandani | | **Zoyer** | Integrated accounts payable, vendor payments, procurement | Enhanced with **BROME** (Recurring Expenses); used by 130+ store chains | | **ZIP (Zaggle International Payments)** | FX cards, cross-border payouts, compliance | Enabled via GIFT City, partnered with Thomas Cook, Skydo | | **Zatix** | AI-driven spend analytics, fraud detection | Integrated with credit cards, offering real-time insights | | **Fleet Management** | Fuel card solutions, spend control, reconciliation | Contracts with **Adani Total Gas, Megha Gas, AGP City Gas**, and OMCs (HPCL, BPCL, IOCL) | | **Smart EPP** | Employee purchase programs (leasing, insurance) | Partners include Tata Capital, OneAssist, Google, Redington | --- ### **Revenue Model & Financial Highlights** - **Revenue Streams** (Q1 FY26): - **Program Fees**: ₹174 Cr (interchange, transactional income) - **Propel Points Revenue**: ₹247 Cr (gift card redemptions, rewards) - **SaaS/Platform Fees**: ₹10.5 Cr (subscription-based) - **Q1 FY26 Performance**: - **Revenue**: ₹331 Cr (+31.4% YoY) - **PAT**: ₹26 Cr (+54.8% YoY) - **Growth Guidance (FY26)**: 35–40% revenue growth, **EBITDA margin to improve to 10–11%**, targeting 12–15% over 3–4 years. - **Longer-Term Outlook**: Management forecasts **40–50% annual organic + acquisition-driven growth** in coming years. --- ### **Technology & Innovation** - **AI & Automation**: Deploying **Zintel** (multilingual conversational AI), **Zaggle Co-Pilot**, and **Model Context Protocol (MCP)** to enable agentic AI in procurement and finance. - **OCR & Fraud Detection**: AI-powered **RazBot** and optical character recognition reduce invoice fraud by identifying duplicates, tampering, and discrepancies. - **Cloud-Native Architecture**: API-first, microservices-based platform supporting **ERP/HRMS integrations** (SAP, Oracle, Keka), zero downtime, and rapid deployment. - **Compliance**: Certified for **GDPR, SOC 1/2, ISO 27001, PCI DSS**, and **NPCI TPAP** (UPI enablement). --- ### **Growth Levers** 1. **Deep Cross-Selling**: Average cross-sell rate increasing across clients—current penetration at ~17%, with target of 25–30%. 2. **New Product Adoption**: BROME, ZIP, Smart EPP, and Fleet products showing strong traction in H1 FY26. 3. **M&A-Driven Expansion**: Focused on **U.S., MENA**, and domestic tech-led acquisitions in **payments, SaaS, and NBFCs**. 4. **International Scale**: Early global moves in **U.S. and MENA** to capture cross-border spend and replicate India’s success. 5. **Fleet & OMC Strategy**: Targeting India’s **₹79,000 crore** fleet management market as a dominant software + payment solution provider. --- ### **Operational & Strategic Strengths** - **High Retention**: Customer churn consistently **below 1.5%**, with clients signing 3–7 year contracts. - **Network Effect**: Platform connects **3.5M+ users**, **3,600+ corporates**, **vendors, drivers, and banks**, driving transaction scale. - **B2B2C Ecosystem**: Enables end-to-end control—corporates manage spends, employees enjoy flexibility, banks gain low-risk card usage. - **Compliance Focus**: Works only with regulated banks and payment networks (RuPay, Visa, Mastercard), avoiding regulatory gray zones. --- ### **Recent Milestones (Aug 2024 – Nov 2025)** - **QIP Raise**: ₹5,950 crore raised in Feb 2025 to fund acquisitions and international expansion. - **HDFC Bank Partnership**: 3-year alliance to bundle Zaggle’s software with corporate credit cards. - **Mastercard 7-Year Deal**: Strategic promotion of Zaggle’s platform across Mastercard’s global client base. - **Award Wins**: Recognized at Global Fintech Festival 2025; named **Financial Institution of the Year** by Franchise India. - **New Clients (2025)**: Apollo Health, OfBusiness, Ultratech, DTDC, Pernod Ricard, SMC Global, Nuziveedu Seeds. ---