About Company

• Zaggle Prepaid Ocean Services Limited (“Zaggle”) was incorporated on June 2, 2011. Zaggle operates in a segment where they interact and interface with the Customers (i.e., businesses) and end Users (i.e., employees) and are among a small number of uniquely positioned players with a diversified offering of fintech products and services, having one of the largest number of issued prepaid cards in India in partnership with certain of their banking partners (which constituted approximately 16% of India’s total prepaid transaction volume, as of March 31, 2023), a diversified portfolio of SaaS, including tax and payroll software, and a wide touchpoint reach.  
• Zaggle is a leading player in spend management, with more than 50 million prepaid cards issued in partnership with banking partners and more than 2.27 million users served, as of March 31, 2023. They offer a differentiated value proposition and diversified user base. 
• Company’s core product includes Propel, a corporate SaaS platform; Save, a SaaS-based platform, ‘CEMS’, a customer engagement management system, Zaggle Payroll Card’, a prepaid payroll card and Zoyer’, an integrated data driven SaaS based business spend management platform. 
• As of March 31, 2023, Zaggle had 1,832 corporate accounts and 579 SMB accounts. As of March 31, 2023, March 31, 2022 and March 31, 2021, their average User base per business was 943, 983 and 828 Users, respectively. As of March 31, 2023, they had issued 10.83 million active cards to 2,411 Customers across India. These Customers used their software to manage spends related to their employees, business, channel partners and customers. As of March 31, 2023, they had served more than 2.27 million Users. 
• The company offers an ecosystem-based approach across SaaS and fintech, with low customer acquisition and retention costs in the business-to-business (“B2B”) segment. Their approach revolves around cross-selling, up-selling, and offering their products and services in partnership with other players in the operating ecosystems. 
• As part of their offering, they have collaborated with certain key banking partners, including IndusInd Bank Ltd, Yes Bank Ltd and NSDL Payments Bank Ltd (together, the “Preferred Banking Partners”), and have issued more than 50 million co-branded prepaid cards since inception of their business.

Strengths

Competitive Strength 

• Differentiated SaaS-based fintech platform, offering a combination of payment instruments, mobile application and API integrations;
• In-house developed technology and strong network effect;
• Business model with diverse sources of revenue and low customer acquisition and retention costs;
• Diversified customer relationships across sectors along with preferred banking and merchant partnerships;
• Seasoned management team with deep domain expertise supported by a professional workforce.

Business Strategies 

• Continue to increase Customer base of corporate accounts, SMB accounts, start-ups and merchants;
• Continue to scale and expand by increasing user penetration and cross selling within the existing Customer base;
• Continue to innovate to introduce new products and use cases;
• Leverage strategic partnerships with financial institutions and merchants.

Company Promoters

Company Financials

Amount in ? Crore

Objects of the Issue

1. Expenditure towards Customer acquisition and retention.
2. Expenditure towards the development of technology and products.
3. Repayment/ pre-payment of certain borrowings, in full or part, availed by the company.
4. General corporate purposes.