Zaggle Prepaid Ocean Services has reported a remarkable 69% increase in revenue year-on-year, reaching ₹336.4 crore in Q3FY25. The company’s net profit for the quarter rose to ₹20.2 crore, reflecting a 33% year-on-year growth. This revenue boost was primarily driven by a 54% rise in program fees from its expanded prepaid and credit card offerings, alongside an impressive 86% increase in Propel revenue, attributed to increased spending during the festive season.
During a post-earnings investor call, founder Raj P Narayanam emphasized the significant impact of artificial intelligence (AI)-driven automation on enhancing operational efficiency. The company’s AI chatbot, Razbot, successfully managed up to 60% of customer inquiries without the need for human intervention. Narayanam stated, “Zaggle plans to broaden the deployment of this chatbot across its product range to further enhance efficiency.” The company has also revised its revenue growth forecast for FY25 to a range of 58-63%. “As we rapidly expand our revenue, we remain committed to protecting and enhancing our margins over time,” he added.
Zaggle’s CEO and MD, Avinash Godkhindi, noted that the company anticipates significant growth driven by new client acquisitions and increased cross-selling to existing clients. He highlighted that program fees are expected to be the fastest-growing segment over the next two to three years.
In response to an analyst’s question about the Reserve Bank of India’s recent decision to allow prepaid cards to facilitate UPI payments through third-party applications, Godkhindi remarked that this development “enhances engagement on our app.” He acknowledged that there are still steps to be taken for qualification, but the company is actively working towards this goal.
Founded in 2011, Zaggle specializes in SaaS-based fintech solutions for businesses, focusing on expense management, payments, and rewards. The company caters to various sectors, including BFSI, technology, healthcare, manufacturing, and FMCG. As of December 31, 2024, Zaggle has issued over 50 million prepaid cards through its banking partners and has served more than 3.16 million users.
