BAJAJ BROKING
Zaggle Prepaid Ocean Services Ltd is a prominent SaaS-based fintech company operating at the intersection of enterprise financial management and digital payments. Since its inception in 2011, the company has evolved into a robust spends management platform with over 50 million cards issued in partnership with leading banks.
Its diversified product suite — including Zaggle Propel, Zaggle Save, and Zaggle Zoyer — caters to corporates, SMEs, and startups, helping them manage expenses, streamline payments, and incentivize employees and partners.
The company’s core revenue streams are derived from Software (SaaS) fees, transaction-based program fees, and its proprietary rewards platform Propel. With less than 2% customer churn, Zaggle’s integrated and compliant offerings have delivered sticky relationships across sectors.
Bajaj Broking initiates coverage on Zaggle with a ‘Buy’ rating and a target price of ₹456, offering a 30% upside from the market price as of the report release date of 1st April.
At the time of publishing this article on 3rd April 2025, Zaggle was trading at ₹361.
Bajaj Broking has set a target price of ₹456, based on FY27E EPS of ₹14.70 and a forward P/E multiple of 31x. Zaggle’s valuation is backed by a projected revenue CAGR of 53% till FY27E and improving EBITDA margins expected to reach 12.1% by FY27E, signaling efficient scale and profitability.
With a market cap of ₹47,690 crore and a diversified investor base, Zaggle is classified as a small cap fintech player positioned for outsized returns amid India’s growing digitisation in B2B financial services.
A key differentiator for Zaggle is its extensive network of 16 banking partners, including DBS, HSBC, ICICI Bank, and Kotak Mahindra Bank. These alliances provide it with seamless access to financial infrastructure, bargaining power in interchange revenues, and co-branded card issuance capabilities. Collaborations also extend to payment networks like Visa, Mastercard, and RuPay.
Its products go beyond traditional corporate credit cards by offering policy-driven compliance, granular spend visibility, and project-specific budgeting tools. This comprehensive suite includes:
These solutions cater to high-compliance sectors, with certifications including GDPR, ISO 27001, and PCI DSS, enhancing trust and regulatory alignment.
Zaggle’s growth trajectory is significantly shaped by strategic acquisitions. Notable among these is the acquisition of a 38.34% stake in Mobileware Technologies, a digital payment infrastructure player offering UPI, IMPS, and API banking through its TransXT platform. This strengthens Zaggle’s backend for embedded payments.
It has also acquired a 51% stake in Easosoft Private Limited, expanding its footprint into POS systems, inventory management, and SME automation. These businesses align with Zaggle’s SaaS strategy and are expected to accelerate innovation and customer stickiness.
Additionally, the company has entered the fleet management space (Zaggle ZatiX) and is expanding international operations through partnerships and cross-border financial services. Backed by ₹5.95 billion raised via QIP in December 2024, Zaggle aims to fund further acquisitions and achieve its $1 billion revenue vision.
Bajaj Broking values Zaggle using a FY27E forward P/E of 31x, deriving a target price of ₹456 based on projected earnings per share (EPS) of ₹14.70. This reflects confidence in the company’s 53% CAGR revenue growth over FY23–27E, margin improvements (EBITDA expanding from 9.5% to 12.1%), and consistent profitability (PAT margins improving to 7%).
Zaggle’s diversified revenue mix — 54% from SaaS software fees, 44% from card transactions, and 3% from Propel platform as of Q3FY25 — ensures multiple levers for scalability. The platform’s embedded nature, high retention rate, and sector-agnostic clientele further enhance predictability in future earnings.
With major corporate clients like Tata Steel, Wipro, PNB MetLife, and Hitachi, and a pipeline of new offerings such as BROME (Branch Operating Expense platform) and health/wellness wallets, the company continues to innovate.
Zaggle Prepaid Ocean Services Ltd stands out as a unique digital-first player in India’s B2B fintech space. Its full stack spends management platform, strategic partnerships, customer stickiness, and bold inorganic growth strategy offer a compelling investment case. Bajaj Broking recommends a Buy rating with a 30% upside potential, underpinned by robust financial metrics and sector tailwinds.
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