Any current/future new fundraising through debt or equity?

In December 2024, Zaggle successfully completed a QIP (Qualified Institutional Placement) raising INR 595 crores, aligned with their inorganic growth strategy. There is no explicit mention of any new or future fundraising through debt or equity beyond this QIP in the current disclosures. The company is actively evaluating five inorganic acquisition targets in spend management and adjacent spaces, funded by the recent capital infusion. No specific plans or timelines for additional fundraising activities (debt or equity) have been disclosed for the near future as of this report.

Any current/future capex/capital investment/strategic investment?

The company has completed a QIP of INR 595 crores in December 2024, aligned with its inorganic growth strategy. Currently evaluating five acquisition targets in spend management and adjacent spaces like merchant card software and payment infrastructure. Two acquisition deals are at advanced stages, with anticipated closures possibly in the next quarter or calendar year. Investments are also directed towards building new product capabilities such as BROME (Branch Recurring Operating Monthly Expenses), fleet payment solutions, and spend management software. Focus on organic and inorganic growth

Future growth expectations in sales/revenue/volumes?

The company expects strong top-line growth, with guidance for FY '25 raised to 58% to 63% growth in revenue. Program Fees segment is anticipated to grow at the fastest pace over the next 2-3 years, driven by traction in conglomerate accounts. SaaS fees and Propel Points revenues are also expected to grow healthily with increasing customer onboarding and usage. The new BROME product is poised to be a star performer next year with potential to significantly boost software and program fees revenue. Enterprise SaaS contracts signed in the last 3-4 quarters are going live, implying an expec

Future growth expectations in earnings/operating earnings/profits/EPS?

Zaggle expects marked improvement in software contracts and overall business growth in the next 2-3 quarters, driven by new product launches like BROME and onboarding of customers. EBITDA margins are projected to expand from current ~9-11% to about 15-16% over the next 3-4 years. Program Fees and SaaS fees revenue growth is anticipated to outpace Propel Points revenue, which currently has lower margins. Margin expansion is expected due to operating leverage, reduced cashbacks, and acquisition of higher-margin businesses (merchant card system, UPI switch). The company aims for top-line

Current/ Expected Orderbook/ Pending Orders?

Zaggle Prepaid Ocean Services Limited is currently evaluating five inorganic growth targets in the spend management and adjacent spaces, including merchant card software and payment infrastructure. Two of these acquisition targets are at very advanced stages and moving towards completion rapidly, possibly within the next quarter. The management expects to close all three ongoing transactions within the current calendar year. No specific order book or pending order values were disclosed, but there is a strategic focus on deepening penetration in select industry segments through solutions like B

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Zaggle Prepaid Ocean Services LtdQ4 FY26IT - Services

Zaggle Prepaid Ocean Services Ltd Q4 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹206P/E: 25.5Market Cap: ₹3.2K CrSector: IT - Services

Management growth scorecard

Revenue

Category 1

Margin

Category 1

Fundraise

Yes

Order

Yes

Capex

Yes

5 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 1

→The company expects strong top-line growth, with guidance for FY '25 raised to 58% to 63% growth in revenue.
→Program Fees segment is anticipated to grow at the fastest pace over the next 2-3 years, driven by traction in conglomerate accounts.
→SaaS fees and Propel Points revenues are also expected to grow healthily with increasing customer onboarding and usage.
→The new BROME product is poised to be a star performer next year with potential to significantly boost software and program fees revenue.
→Enterprise SaaS contracts signed in the last 3-4 quarters are going live, implying an expected inflection in software growth over the next 2-3 quarters.
→Acquisitions in spend management and adjacent spaces are expected to contribute to revenue with expanded capabilities and cross-selling opportunities.
→Partnerships with major clients (e.g., Blinkit, Zepto, HDFC Bank) will help increase per-user revenue and overall sales volumes.

Margin guidance

Category 1

→Zaggle expects marked improvement in software contracts and overall business growth in the next 2-3 quarters, driven by new product launches like BROME and onboarding of customers.
→EBITDA margins are projected to expand from current ~9-11% to about 15-16% over the next 3-4 years.
→Program Fees and SaaS fees revenue growth is anticipated to outpace Propel Points revenue, which currently has lower margins.
→Margin expansion is expected due to operating leverage, reduced cashbacks, and acquisition of higher-margin businesses (merchant card system, UPI switch).
→The company aims for top-line growth guidance of approximately 58-63% for FY25, with expectations of sustained healthy growth beyond that.
→Acquisitions in advanced stages are expected to contribute significantly to margin and revenue growth post-completion.
→Overall profit after tax (PAT) has shown strong historical growth, with a 123% Y-o-Y increase over 9 months FY25, indicating robust earnings momentum.

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Fundraise plans

Yes

→In December 2024, Zaggle successfully completed a QIP (Qualified Institutional Placement) raising INR 595 crores, aligned with their inorganic growth strategy.
→There is no explicit mention of any new or future fundraising through debt or equity beyond this QIP in the current disclosures.
→The company is actively evaluating five inorganic acquisition targets in spend management and adjacent spaces, funded by the recent capital infusion.
→No specific plans or timelines for additional fundraising activities (debt or equity) have been disclosed for the near future as of this report.

Order book

Yes

→Zaggle Prepaid Ocean Services Limited is currently evaluating five inorganic growth targets in the spend management and adjacent spaces, including merchant card software and payment infrastructure.
→Two of these acquisition targets are at very advanced stages and moving towards completion rapidly, possibly within the next quarter.
→The management expects to close all three ongoing transactions within the current calendar year.
→No specific order book or pending order values were disclosed, but there is a strategic focus on deepening penetration in select industry segments through solutions like BROME.
→The company has signed marquee clients such as Blinkit and Zepto, with ongoing demos and implementations expected to contribute significantly to revenue growth.
→Overall, the outlook reflects optimism about onboarding significant contracts and closing acquisitions, which should bolster the order book and growth pipeline.

Capex plans

Yes

→The company has completed a QIP of INR 595 crores in December 2024, aligned with its inorganic growth strategy.
→Currently evaluating five acquisition targets in spend management and adjacent spaces like merchant card software and payment infrastructure.
→Two acquisition deals are at advanced stages, with anticipated closures possibly in the next quarter or calendar year.
→Investments are also directed towards building new product capabilities such as BROME (Branch Recurring Operating Monthly Expenses), fleet payment solutions, and spend management software.
→Focus on organic and inorganic growth with deep profit pools to drive margin expansion over coming years.
→Employee and other operating expenses have increased due to investments in product launches and growth initiatives.
→Partnership with Mastercard signifies strategic collaboration and market expansion.
→Overall, the capital deployment is geared towards acquisitions and product development to support rapid top-line growth and margin improvement.

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