Zaggle Prepaid shares hit 5% upper circuit as firm inks deal with MasterCard; check details

The stock was frozen at ₹490.85 on the NSE.

The terms and conditions of the agreement are that MasterCard will recommend the Zaggle SaaS platform, payment, and card products to corporate customers and other ecosystem entities on a referral basis. 

The term shall commence on Nov 26, 2024, and shall continue for seven years.

The stock price of Zaggle Prepaid has jumped 116% so far in calendar year 2024 and 91% in the past 12 months. 

For the quarter ended September 30, 2024 (Q2 FY25), SaaS fintech platform Zaggle Prepaid posted a three-fold increase in consolidated net profit to ₹20.3 crore for the September quarter.

It had reported a net profit of ₹7.62 crore in the year-ago period.

The revenue from operations for the quarter under review was ₹302.5 crore, 64.22% higher than ₹184.2 crore a year earlier, it said.

"As part of our growth strategy, we are actively seeking strategic alliances and inorganic growth opportunities. We are strongly focusing on M&As with a combined strategy of small tuck-ins and larger investment opportunities in the SaaS Fintech sector, including areas like NBFC, payments, etc.

"In line with our growth plans, we have taken approval from the board of directors for a fundraising of up to ₹9,500 million (₹950 crore) subject to shareholders' approval," Raj P Narayanam, Founder and Executive Chairman, Zaggle Prepaid Ocean Services, said.

The firm is increasing its guidance from 45-55% to 50-55% growth in topline for FY25 and is confident of doubling its FY24 revenues in the next two years. Narayanam added.

In September this year, Zaggle announced the acquisition of stakes in two companies with a total investment of around ₹48 crore.

The company has acquired a 98.32% stake in Span Across IT Solutions and 26% in Mobileware Technologies.