Fintech SaaS company Zaggle plans to acquire a 45.33% stake in point of sale (PoS) software solutions provider Effiasoft for Rs 36.72 crore in an all-cash deal.

 

In an exchange filing, Zaggle said it received the approval from its board to acquire the stake from Effiasoft cofounders Koushik Shee and Akula Krishna Rao. 

The company’s board has also approved a proposal to acquire an additional 5.67% stake in Effiasoft from Shee and Rao for Rs 4.59 crore. The mode of the deal will be decided at a later stage by the board. 

According to Zaggle, the acquisition will enable it to leverage Effiasoft’s expertise to enhance its tech stack by accelerating product development, improving operational efficiency, strengthening payment processing capabilities, increasing merchant engagement, and driving digital transformation in the fintech space.

Founded in 2012 by Shee and Rao, Effiasoft offers end-to-end software solutions for PoS devices, inventory management and customer loyalty. The startup claims to have over 300 merchant partners across sectors such as retail, distribution, shipping, airlines, banking, among others. 

As per the filing, Effiasoft’s turnover in FY24 stood at Rs 18.94 crore against Rs 13.43 crore reported in FY23. Based on provisional unaudited financial statements, the company’s revenue is at Rs 24.67 crore in FY25, as of March 15. 

Zaggle plans to complete the transaction in the next 90 days. 

Founded in 2011 by Raj Narayanam, the spend management company Zaggle Prepaid Ocean Services has also acquired a little over 38% stake in payment solutions provider Mobileware Technologies for around Rs 22.85 crore.