Subscribe to Zaggle Prepaid Ocean Services: Geojit

Geojit has come out with its report on Zaggle Prepaid Ocean Services. The research firm has recommended to “ Subscribe ” the ipo in its research report as on September 13 2023.

Broker Research

September 14, 2023 / 12:37 IST

IPO

26 Aug, 2025 12:21

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Geojit IPO report on Zaggle Prepaid Ocean Services

Zaggle Prepaid Ocean Services Ltd. (ZPOSL), founded in 2011, is a prominent player in the business-to-business-to-customer (B2B2C) segment. The company specialises in delivering fintech products, including prepaid cards and software-as-a service (SaaS) solutions, to corporate clients across various sectors. ZPOSL occupies a distinctive position at the convergence of the SaaS and fintech ecosystems. It offers a comprehensive SaaS platform geared towards addressing essential business functions, such as business spend management (covering expense and vendor management), rewards and incentives management for both employees and channel partners, and a robust customer engagement management system (CEMS). Operating through a network of seven offices throughout India, Zaggle Prepaid Ocean Services serves more than 1.7 million end-users and collaborates with over 1,750 corporate clients. The spend management software and services market in India is projected to expand from an estimated ₹73 bn in 2021 to ₹131 bn by 2027, demonstrating a CAGR of ~ 25.3%. Zaggle’s revenue grew ~52% CAGR over FY21–23, while its Adj. PAT grew 38% CAGR during the same period due to an increase of 151% in the user base. For FY23, ZPOSL recorded a consolidated net profit of ₹36.9cr, with revenue reaching ₹553.5cr.

Valuation and Outlook

At the upper price band of ₹164, ZPOSL is available at a Adj. P/E of 54.3x (FY23), which appears to be aggressively priced. However, several factors contribute to its appeal, including a diverse client base spanning various industries, consistent revenue growth over the years, the company's expansion strategies, a diversified revenue model, and the flourishing digital payments sector. Given these considerations, we recommend a "Subscribe" rating for the issue on a short- to medium-term basis.

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