Zuzu Software offloads over 48.99 lakh shares of Zaggle Prepaid Ocean Services via bulk deal

The transaction was conducted at an average price of ₹361.23 per scrip, exchange data showed. As of the end of June 30, 2024, Zuzu Software held over 1.57 crore shares of Zaggle Prepaid.

Recently, Zaggle said it has signed an agreement with Open Network for Digital Commerce (ONDC) for facilitating the issuance of prepaid payment instruments to the customers/sponsor organisations for rewarding their employees, partners and consumers.

During the first quarter of fiscal year 2025, revenue from operations rose 112.9% year-over-year (YoY) to ₹252.21 crore. Adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 85.4% to ₹25.58 crore while EBITDA margin declined to 10.1% compared to 11.6% in the same quarter a year ago. Net profit rose 713.6% YoY to ₹16.72 crore while profit margin improved significantly to 6.6% from 1.7% in Q1FY24.

Zaggle said the growth in the topline was driven by an increase in credit card volume and consistent performance of Zoyer. It also witnessed a client addition with a large user base. The change in product mix also contributed to improvement in gross profit.

Raj P Narayanam, founder and executive chairman at Zaggle Prepaid Ocean Services said that in line with the firm’s growth strategy, it is focused on inorganic growth opportunities in Spend Management space to enhance its leadership position. “We are actively exploring complementary inorganic expansion opportunities and will provide updates as positive developments occur. These potential acquisitions would help Zaggle to scale faster,” he said.

The management expects to continue a similar performance for upcoming quarters driven by increased customer base, newer use cases, deeper penetration into the existing customers and cross selling of solutions.

“For this fiscal year, we project a revenue growth of 45% to 55% over the previous fiscal year. Additionally, we reaffirm our goal of doubling our revenue within the next two years. We expect our adjusted EBITDA to hold steady around current levels,” Narayanam added.

Shares of Zaggle Prepaid Ocean Services have gained nearly 68% since the beginning of the year. The stock has gained over 130% in the last one year.