Zaggle Announces Q1FY25 Financial Results with Strong Revenue Growth

On July 30, 2024, Zaggle Prepaid Ocean Services Limited, a company specialising in SaaS fintech and spend management solutions, released its unaudited financial results for the quarter ending June 30, 2024.

Q1FY25 – Key Highlights

In Q1FY25, Zaggle Prepaid Ocean Services Limited reported significant financial growth. Revenue from operations surged by 112.9% to ₹2,522.1 million, compared to ₹1,184.8 million in Q1FY24. Adjusted EBITDA increased by 85.4% to ₹255.8 million, although the adjusted EBITDA margin slightly decreased to 10.1% from 11.6%. The reported EBITDA saw a substantial rise of 181.8% to ₹224.3 million, with the EBITDA margin improving to 8.9% from 6.7%. Profit After Tax (PAT) skyrocketed by 713.6% to ₹167.2 million, and the PAT margin improved to 6.6% from 1.7%. Additionally, Cash PAT increased by 122.2% to ₹220.0 million.

In Q1FY25, Zaggle Prepaid Ocean Services Limited saw year-on-year revenue growth driven by increased credit card volume, consistent performance from Zoyer, and the addition of clients with a large user base. The company’s gross profit improved primarily due to a change in the product mix. Finance costs decreased as a result of debt prepayments following their IPO. For FY25, total ESOP expenses are projected to be approximately ₹70-90 million. Employee costs and operating expenses have risen in line with the company’s business growth.

About Zaggle Prepaid Ocean Services Limited (Zaggle)

Founded in 2011, Zaggle is a prominent player in spend management, offering unique value and catering to a diverse user base. The company operates in the business-to-business-to-customer (B2B2C) segment and stands out with its wide range of financial technology products and services. Zaggle is a leading issuer of prepaid cards in India, working with banking partners to distribute over 50 million cards. The company also offers a variety of SaaS products, including tax and payroll software, and has a broad reach with over 2.88 million users as of June 30, 2024.

On July 31, 2024, the share price of Zaggle Prepaid Ocean Services Ltd opened at ₹350.15, touching the day’s low at ₹341.50, as of 10:22 AM on the NSE.

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