New card offerings, lower finance cost drive Q3 revenue growth, says Zaggle chairman

Zaggle reported its all-time high quarterly revenue of Rs 199.5 crore for the October-December quarter of 2023-24

New credit card offerings and lower finance costs helped fintech player Zaggle Prepaid Ocean Services Ltd post a strong 35 percent growth in revenue in the December quarter, a top company official said on Friday. The fintech player, which provides spend management products and solutions, also said that its recent Rs 200 crore deal with Torrent Gas Ltd offers significant volume and margin potential.

Zaggle reported its all-time high quarterly revenue of Rs 199.5 crore for the October-December quarter of 2023-24, a growth of 35.1 percent over Rs 147 crore in the year-ago period. "The record-breaking performance is a result of our product portfolio's strategic diversification and the successful launch of commercial credit card offerings," Zaggle executive chairman and founder Raj P Narayanam said.

"With Torrent Gas Ltd joining as a client, we have entered the fleet loyalty card program, offering significant volume and margin potential," he said, adding that the company is tapping into India's vast fleet spends market estimated to be worth Rs 73,000 crore. Zaggle reported a 92.7 percent jump in net profit to Rs 19.5 crore for the third quarter of FY24 compared to Rs 10.1 crore in the year-ago period.

Higher other interest income on increased cash or bank balances post IPO and a drop in finance cost following repayment of debt helped boost the profit, the company said. Adjusted operating profit or EBITDA rose by 56.4 percent to Rs 22.86 crore in the third quarter compared to Rs 14.62 crore a year ago.

"Revenue contribution from Zoyer has experienced significant growth, it said. Zaggle is a leading pre-paid card issuer with a market share of around 16 percent by transaction value and a major player in spend management space.

The company operates in the business-to-business-to-customer segment and offers a diversified offering of financial technology SaaS products and services like tax and payroll. Zaggle is one of the largest number of issued prepaid cards in India in partnership with its banking partners.