Zaggle Prepaid Ocean Services, a prominent player in the SaaS fintech arena, witnessed its shares soar to a 5% upper circuit limit for the second day in a row, closing at ₹361.85 on March 28, 2025. This surge follows the company’s strategic decision to acquire a 45.33% stake in Effiasoft Private Limited. The announcement, which came from the Board of Directors during a meeting on March 27, outlines a purchase agreement involving a payment of ₹36.72 crore to existing shareholders Koushik Shee and Akula Krishna Rao.

Strategic Acquisition Moves by Zaggle

In addition to the major stake in Effiasoft, the Board also reviewed a proposal to acquire an additional 5.67% stake from the same shareholders for ₹4.59 crore. This acquisition strategy aligns with Zaggle’s broader growth objectives.

• Key acquisitions:
  • 45.33% in Effiasoft for ₹36.72 crore
  • Additional 5.67% in Effiasoft for ₹4.59 crore
  • 38.34% in Mobileware, combining investments and share purchases

Earlier this week, Zaggle finalized a deal to secure a 38.34% stake in Mobileware, investing ₹15.6 crore for a 26% stake and acquiring an extra 12.34% for ₹7.25 crore.

Recent Collaborations and Market Performance

This month also marked a significant partnership with Omega Healthcare Management Services, where Zaggle will offer its Zaggle Save platform, enhancing employee expense management and benefits.

However, the company’s stock has faced challenges, dropping 30% in the last three months. February was particularly difficult, as it recorded its worst monthly performance since its September 2023 listing, largely due to an unexpected rise in operating expenses despite reporting strong revenue and profit growth in Q3FY25.

Understanding the Decline

The increase in employee costs has been attributed to a workforce expansion aimed at supporting business growth. Despite these challenges, the company has successfully expanded its customer base to over 3,300 clients, securing contracts with notable brands such as Blinkit, CanFin Homes, BigBasket, Mumbai Metro One, Mahindra First Choice Wheels, and Hitachi India.

Future Outlook

Looking ahead, Zaggle projects a 58-63% growth in its top line for FY25 and is actively pursuing inorganic growth opportunities. With discussions at advanced stages, the fintech company is positioning itself for accelerated expansion in the competitive market landscape.

In summary, while Zaggle faces some headwinds, its recent strategic acquisitions and partnerships indicate a robust approach to navigating the fintech sector’s challenges.