Zaggle posts 64% jump in Q2 FY25 revenue; net profit up by 145%
14 Nov 2024, 01:13 AMThe net profit reached Rs 18.5 crore during the quarter compared to Rs 7.78 crore reported in Q2 FY24.
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Prepaid card fintech Zaggle, which provides spend management products and solutions to corporates, has posted Rs 302.5 crore in revenue from operations in Q2 FY25, up 64.2% from Rs 184.2 crore in Q2 FY24.
The company's total expenses jumped 60% year-on-year and reached Rs 280.5 crore compared to Rs 174.98 crore reported in the previous fiscal.
The cost of point redemption and gift cards surged 41.9% to Rs 161.93 crore in Q2 FY25 from Rs 114.09 crore in Q2 FY24. While, employee benefits expenses remained unchanged at Rs 17.90 crore.
The net profit witnessed a significant jump of 144.7%, reaching Rs 18.5 crore during the quarter compared to Rs 7.78 crore reported in Q2 FY24.
According to the company, the growth in the topline is driven by increase in the volume of the prepaid cards and credit cards; client addition with large user base; improvement in gross profit largely due to change in product mix, etc.
New client additions, include Baroda BNP Paribas Asset Management, Blue Star, HDFC Ergo General Insurance, amongst others.
Zaggle founder and executive chairman Raj P Narayanam said, “In the rapidly expanding Indian spend management industry, we have unlocked significant growth and successfully expanded both our customer and user base."
The company said that as part of its growth strategy, it is actively seeking strategic alliances and inorganic growth opportunities. "We are strongly focusing on M&A’s with a combined strategy of small tuck-ins and larger investment opportunities, in the SaaS Fintech sector, including areas like NBFC, Payments etc," the company stated.
In line with our growth plans, the company said it has taken approval from the board of directors for a fund raise of up to Rs 950 crore ($115 million), subject to shareholders approval.
Zaggle has upped its guidance to 50-55% growth in topline for FY 25.
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